Course Catalog and Schedule



Investments (FINC-460-0)
1.00 Credit
TCE BidStats

Description:

This course counts toward the following majors: Analytical Finance, Finance.

This course aims at developing key concepts in investment theory from the perspective of a portfolio manager rather than an individual investor. The goal of this class is to provide you with a structure for thinking about investment theory and show you how to address practical investment problems in a systematic manner. Instead of focusing on pure theoretical models, the emphasis is given on the empirical facts observed in asset prices in worldwide capital markets, understanding whether they manifest new dimension of systematic risk, and how to design smart portfolios to take advantage of multiple sources of systematic risk.

Topics include capital allocation and optimal portfolio selection; diversification, risk, and various models linking risks with returns, such as, the CAPM, the Fama-French 3-Factor Model (‘value’ and ‘size’ investing), ‘momentum investing’ and the Carhart’s 4-Factor Model, and Ross’s multifactor APT to account for multiple sources of systematic risk; risk-adjusted returns, measures of fund performance, and various trading strategies used by Hedge Funds; market efficiency (including empirical anomalies and behavioral finance). Among other topics, impact of borrowing constraint and transaction costs and illiquidity; risk management issues, such as, portfolio insurance; Bond valuation and the term structure of interest rates; the Black-Scholes/Merton option pricing model; etc. may be covered as time permits.

This is a quantitative course. We discuss many cases, but case studies will require ability to do statistical analysis similar to what might be applied in practice. The course develops an applied analytical framework of financial investments. Therefore students interested in this course are expected to have sound knowledge of Statistics and Regression Analysis.

Prerequisites:
All Students: ( FINC-430-0 OR FINC-440-0 ) AND ( DECS-434-0 OR DECS-431-0 OR DECS-437-0 OR DECS-445-0 OR DECS-439-B OR DECS-440-0 )

Download Schedule Information
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Academic Year Term   Course ID Title Sec ID   Credits Syl Instructor Times Campus Location Mand 1st Exam
2014-2015 Winter 2015 FINC-460-0 Investments 61 1 Braun, Phillip Mon/Thu 10:30 AM - 12:00 PM Evanston Jacobs (G36) N Multiple times available 3/14/15 – 3/17/15. Registration open 1/22-3/1.
2014-2015 Winter 2015 FINC-460-0 Investments 71 1 Papanikolaou, Dimitris Mon 06:00 PM - 09:00 PM Chicago Wieboldt (109) N
2014-2015 Winter 2015 FINC-460-0 Investments 76 1 Braun, Phillip Sat 09:00 AM - 12:00 PM Chicago Wieboldt (350) N
2014-2015 Spring 2015 FINC-460-0 Investments 61 1 Dew-Becker, Ian Tue/Fri 01:30 PM - 03:00 PM Evanston Jacobs (G44) N
2014-2015 Summer 2015 FINC-460-0 Investments 71 1 Braun, Phillip Tue 06:00 PM - 09:00 PM Chicago Wieboldt (TBD) N