FINE 441 Lecture Notes - Lecture 2: Modern Portfolio Theory, John Wiley & Sons, Stock Valuation
15 Dec 2015
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Bodie z. , kane a. , marcus a. j. , perrakis s. and ryan p. j. Edwin j. elton and martin gruber, modern portfolio theory and investment. Reilly f. k, brown k. c, investment analysis & portfolio management, The course is intended for students interested in portfolio management. It is designed to provide a conceptual framework of the investment process. The major topics covered will the principles of stock valuation, optimal portfolio selection, the relation between risk and expected return including the concept of diversification , the capital asset pricing. Models (capm) and other recent asset pricing models, the notion of market efficiency, fixed income securities and derivative securities (in particular stock option). The concept map below illustrates the conceptual linkages among the various topics covered in the course. Retirement, child"s education, purchase of a new house etc. 10. use the bond pricing equation to find bond prices and bond yields. 12. explain how immunization techniques protect bonds from interest rate risk.
