COMM371: INVESTMENT THEORY Course Outline 1 “Price is what you pay. Value is what you get.” Warren Buffett This course covers the basic mechanisms of asset markets and introduces the fundamental tools of asset valuation. Three major asset classes are covered: stocks, fixed- income securities, and derivatives. Using theoretical concepts and practical examples, we will discuss many of the financial decisions made by corporations, fund managers and investors, including hedging, optimal asset allocation, and asset valuation. Students will also gain experience in trading those assets in a simulated but realistic environment. Instructor: Prof. Elena Pikulina Email: [email protected] Phone: 604 822 3314 Office: HA 865 Office hours: Mon & Wed 5:30 p.m. - 6:30 p.m. Classroom: ANGU 037 Class time: Section 103: Mon & Wed 2.30 p.m. - 4:00 p.m. Section 104: Mon & Wed 4.00 p.m. - 5:30 p.m. Course duration: September 05, 2017 to December 1, 2017 Pre-requisites: COMM 298 Course website:
COMM371: INVESTMENT THEORY Course Outline 2 L EARNING O BJECTIVES By the end of this class, students are expected to • Know the basic definitions, concepts, and facts about financial markets • Be able to determine worth of different assets (stocks, bonds, derivatives) using simple theoretical models and frameworks such as CAPM, no arbitrage principal, risk-neutral probabilities • Understand diversification and hedging and be able to apply these concepts in practice • Gain trading experience in different asset classes (equity, fixed-income, derivatives) in a simulated but realistic environment R EQUIREMENTS & C OURSE M ATERIALS Lecture notes Lecture notes will be posted on the course Connect website before each lecture. They will be the most important study material. You may bring the notes with you to the lectures to reduce the need to take your own notes and to allow yourself more time to understand the material. EquitySim In this course, you will be asked to use EquitySim, an online trading simulator platform. You will manage a virtual portfolio of stocks, bonds, and derivatives to learn in a realistic but friendly environment. The platform also gives you an opportunity to be matched with firms looking to fill in their intern and full-time positions. Your grade will be based on engagement and speed of learning, not portfolio performance. During the account creation process, EquitySim will collect your name and other identifying information. By using EquitySim, you are consenting to the storage of this information in the United States. If you choose not to provide your consent, see me to make alternate arrangements. Excel spreadsheets Complementary material in the form of Excel spreadsheets will be available on Connect.
- Fall '13
- Capital Asset Pricing Model, EquitySim