COMM371: INVESTMENT THEORY Course Outline 1 C OURSE I NFORMATION Instructor: Prof. Elena S. Pikulina Email: [email protected] Phone: 604 822 3314 Office: HA 864 Office hours: Thu 8:00 a.m. - 9:30 a.m. Classroom: ANGU 243 Class time: Section 101: Mon/Wed 8.30 p.m. - 10:00 p.m. Section 102: Mon/Wed 10.00 p.m. - 11:30 p.m. Course duration: Sep 03, 2019 to Nov 29, 2019 Pre-requisites: COMM 298 Course website: C OURSE D ESCRIPTION This course introduces the workings of asset markets and examines the main tools of asset valuation that decision makers in these markets use. Three important types of securities are covered: fixed income, equities, and derivatives. The course comprises a mix of theory, empirical evidence, and applications. As this course sets the foundation of investments, students should expect to study not only for the purpose of passing exams in the course, but also for the long-term development of competency as a professional. Therefore, maintaining an inquisitive attitude toward learning is essential in this course. L EARNING O BJECTIVES The main goal of the course is to familiarize students with fundamental theoretical concepts. However, we will also emphasize practical applications of these concepts. This will be done through in-class discussion, Excel computer coursework, and homework assignments. Students will (i) be exposed to real-life examples and applications using up-to- date data from financial markets; (ii) understand the relationship between risk and return and will be able to value fixed -income securities, stocks, and derivatives; and (iii) know how to form a portfolio of financial assets for diversification or hedging purposes. 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
COMM371: INVESTMENT THEORY Course Outline 2 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 Canvas 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. After the lectures, you should go over the notes again. We will occas ionally update the notes, mostly to (i) refine the arguments based on the discussion in class; (ii) clarify questions from class; (iii) give additional references; and (iv) provide up-to-date examples or data.
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