Investments

Lectures: 2 sessions / week, 1.5 hours / session

The focus of this course is on the financial theory and empirical evidence that are useful for investment decisions. The topics covered in this course can be broadly categorized into five groups:

A sound investment decision requires in-depth knowledge of the financial markets, rigorous analytical thinking and precise mathematical derivation. The main objective of this class is to teach you these three elements:

Required Reading
Bodie, Zvi, Alex Kane, and Alan J. Marcus ("BKM"). Investments. 5th Edition. McGraw-Hill/Irwin, 2002.

Recommended Reading
P. Bernstein. Capital Ideas: The Improbable Origins of Modern Wall Street. New York: Free Press, 1992.

TA's and Review Sessions

The TA's for the course will hold weekly office hours, review sessions are announced in the class.

Both class preparation and participation are important. The classroom is a great place to test and enhance your understanding of the material by asking and answering questions. It will be hard to contribute to the discussions if you are unprepared. I strongly encourage you to prepare for class in study groups. For details, see Course Schedule and Reading List.

Class participation, from clarifying questions to creative and insightful comments, is greatly encouraged. Your active participation will transform this class into a great learning experience for everyone, including myself.

There are five group assignments. Each is worth between 3 to 5 points toward your final grade. Group assignments are due at the beginning of class on the due date.

Please work in a group of three to five students when preparing these assignments. Each group should hand in only one set of answers. Each group member will receive the same grade on an exercise, and each is expected to make a significant contribution to the solution of every problem.

Both mid-term and final exams are in-class, closed-book and closed-notes. The mid-term will be given after lecture 11, and the final will be given during the scheduled final examination date (after lecture 24).

Unlike the group assignments, you may not work on the exams in groups. If you have to miss the exams due to medical reasons, please contact me before the exams.

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