Investments

431

Course Description:
Studies solutions to fundamental problems faced by individual and institutional investors. First, we cover a number of topics in fixed income markets including the different ways of computing bond yields, forecasts of interest rates using the yield curve, and duration and convexity as measures of bond risk. Second, we solve the asset allocation problem to determine an optimal portfolio mix. We review the relevant theory, use an advanced spreadsheet to find an answer, and discuss issues faced by portfolio managers. Third, we use two methods to value options, the Black-Scholes formula and the binomial tree, and show how investors can use options to customize their risk-reward profile. This course is equivalent to MGT 403B so it is not available for MSF students. Prerequisite: MGT 331. [2]

2 Credit(s)

Please Note: Not all courses are scheduled each semester. Complete class schedules are available upon enrollment.