Avramov Doron Investments

Investment Management
Lecture Notes

Prof. Doron Avramov
The Jerusalem School of Business Administration
The Hebrew University of Jerusalem

Syllabus: Course Description
 In this course you will study the theory and practice of investment management in domestic and global (especially US) financial markets.
 The course comprehensively describes conceptual paradigms and their extensive applications in practice.

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Prof. Doron Avramov, The Jerusalem School of Business Administration, The Hebrew University of Jerusalem, Investment Management

Syllabus: Contents
 The following topics will be covered:
 Understanding the risk-return tradeoff: essential concepts and the empirical evidence;  The stock versus bond performance;

 Constructing price weighted equity indexes (e.g., Dow Jones 30, Nikkei 225) as well as value weighted equity indexes (e.g., TA25, S&P500, NASDAQ);
 Short selling and buying on margin;
 Recovering key financial ratios from financial statements;
 Understanding market efficiency.

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Prof. Doron Avramov, The Jerusalem School of Business Administration, The Hebrew University of Jerusalem, Investment Management

Syllabus: Contents
 Analyzing performance of mutual funds;
 Comparing properties of mutual funds and hedge funds;
 Examining evidence on profitable trading strategies in global and domestic markets, especially, the size, value, price momentum, earnings momentum, and volatility effects in stock prices;
 Forming optimal portfolios with constraints;
 Investing in public and private equities, commodities, and bonds;
 Understanding derivatives securities;

 Valuing equities using the discounted cash flows approach and price multipliers.

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Prof. Doron Avramov, The Jerusalem School of Business Administration, The Hebrew University of Jerusalem, Investment Management

Syllabus: Prerequisite
 Check out whether you have taken all the prerequisite courses prior to pursuing this course.
 The course is quantitative and it requires