333-301 Investments

Students may not gain credit for both 333-301 Investments and either 306-331 Investments or 300-334 Financial Mathematics III.

333-201 Business Finance and one of 316-205 Introductory Econometrics, 316-206 Quantitative Methods 2 or 620-202 Statistics.

This subject is an introduction to investment analysis, with emphasis on equity securities and fixed interest securities. The topics covered focus on issues fundamental to financial managers, money managers, risk managers, financial advisers and regulators. These topics include fundamental ideas in asset pricing; modern portfolio theory and its applications; equilibrium theories of asset pricing; portfolio performance evaluation, empirical evidence on security returns; key issues in pricing fixed interest securities, including credit risk; theories of the term structure of interest rates; techniques in fixed interest portfolio management and the pricing of swaps and its applications.

A 3-hour end-of-semester examination (80%) and either assignments totalling not more than 2000 words or a 1-hour mid-semester test as advised by the lecturer in charge at the beginning of semester (20%).