Course SummaryThis course teaches how to make sound investment decisions through in-depth knowledge of the financial markets, rigorous analytical thinking and precise mathematical derivation. The focus of this course is on financial theory and empirical evidence for making investment decisions. Topics include: portfolio theory; equilibrium models of security prices (including the capital asset pricing model and the arbitrage pricing theory); the empirical behavior of security prices; market efficiency; performance evaluation; and behavioral finance. A comprehensive set of lecture notes is included with this course.
Reading Material1. Investments
Bodie, Zvi, Alex Kane, and Alan J. Marcus ("BKM"). Investments. 5th Edition. McGraw-Hill/Irwin, 2002.
(click the image below to link to the 8th edition)
2. Capital Ideas: The Improbable Origins of Modern Wall Street
P. Bernstein. Capital Ideas: The Improbable Origins of Modern Wall Street. New York: Free Press, 1992.
(click the image below to link to the 2005 edition)