-1. Introduction to Financial Markets
a.Financing investment in the economy
b.Financial markets and trading financial assets
-2. Financial Mathematics
a.Introduction: The time value of money
b.Simple and compound interest. Equivalent interest rates.
c.Present and Future Values.
-3. Investment Appraisal
b.Determining current and future values
c.Net present value of an investment project
d.Internal rate of return
e.Other valuation techniques
-4. Fixed Income Securities
a.Valuation of fixed income
b.The term structure of Interest Rates
c.Forward interest rates
-5. Risk and Return
a.Mathematical representation of a portfolio
b.Expected portfolio returns
c.Variance and standard deviation
d.Finding the minimum variance portfolio
e.Graphical representation of expected return and standard deviation of a portfolio
-6. Portfolio Theory
b.Assumptions of the Mean-Variance Analysis
c.The Efficient Frontier
d.The tangency portfolio
-7. The Capital Asset Pricing Model (CAPM)
a.Relationship between risk and expected return
b.The CAPM model
c.The CML and The SML
-8. Derivatives Products
a.Types of derivatives
Reference text books:
- Bodie Zvi, Kane Alex, Marcus Alan (2005), Essentials of Investments, McGraw Hill (Sixth Edition).
- Brealey R., S. C. Myers and F. Allen (2006), Principles of Corporate Finance, 8th edition, McGraw Hill.
Other useful books:
- Bodie, Z., Kane, A. and Marcus, A. J. (1999), Investments, McGraw Hill (Fouth Edition).
- Grinblatt, M. and S. Titman (2003), Financial Markets and Corporate Strategy, McGraw Hill.