This course introduces the concepts of investment theory and their applications in practice. It starts with an overview of different securities and markets. We discuss portfolio theory, the capital asset pricing model, and other models. The process of equity valuation is examined. This is followed by an introduction to fixed-income securities, options, futures, and other derivative instruments. We also discuss portfolio management. Throughout, the emphasis is on applying theory to practice.
Prerequisite:MGMT E-2020, or the equivalent. (4 credits)