Introduction to Finance: Financial securities and to the roles of financial securities and financial markets. Fisher's separation principle; The roles of financial institutions; The characteristics of financial markets.
Modern Portfolio Theory: Risk and return. Historical data; Diversification benefits and portfolio choice; The Market Portfolio; The CAPM and its implications; The empirical analysis of the CAPM, the APT and multi-factor models; The definitions and implications of the efficient market hypothesis; Mutual fund performance and market efficiency.
Fixed Income Securities: Institutional aspects and characteristics; The present value; Bond prices and interest rates; The term structure of interest rates; Theories of the term structure of interest rates; Risk and bond prices;
Equity Markets: Stock characteristics; Dividends and stock value; Investment and growth opportunities.
Derivative Markets: Forward and futures contracts; Futures markets; The arbitrage principle; Forward and futures prices; Option characteristics; The Basic pricing relationships; Option strategies; The binomial model and risk-neutral valuation.