financial economics course outline
King’s University College
Department of Economics
Economics 2300
Investment and Financial markets Des McKeon Winter 2014
Office Hours Friday 9:30 -10:30
Course Description This course examines the major theories of investment finance and the pricing bonds, stocks and options. Portfolio construction using passive and active management strategies will also be discussed.
The course will appeal to anyone considering a career as a financial analyst, portfolio manger or in wealth management. It will also aid in preparing for the preliminary exams of various professional designations.
The first part of the course will cover the main tenets of mean variance portfolio theory to determine efficient portfolios and select the optimum portfolio.
The second part of the course will examine standard equilibrium pricing models such as the CAPM and the APT.
Part three will cover the pricing of debt and equity instruments in their respective markets..
The course will conclude with an introduction to option pricing and other derivatives.
Although much attention will be paid to the theoretical constructs of the material, the emphasis will be placed on applications throughout the course.
Course Materials.
The main text for the course is Bodie Z., A. Kane, A.J. Marcus, S. Perrakis and P. Ryan, Investments, 7th Canadian edition McGraw Hill Ryerson
The class will also have an OWL site where some but definitely NOT ALL extra material will be posted. The web site will not contain enough material for you to do well in this course. All topics, techniques and methodologies discussed in class are subject to examination.
Assessment.
First Term Test ………………..25%
Second Term Test……………...25%
*Participation……………… …10%
Final exam……………………..40%
*Participation is more than simply attending a class. It may involve short class quizzes, take home or web based
Department of Economics
Economics 2300
Investment and Financial markets Des McKeon Winter 2014
Office Hours Friday 9:30 -10:30
Course Description This course examines the major theories of investment finance and the pricing bonds, stocks and options. Portfolio construction using passive and active management strategies will also be discussed.
The course will appeal to anyone considering a career as a financial analyst, portfolio manger or in wealth management. It will also aid in preparing for the preliminary exams of various professional designations.
The first part of the course will cover the main tenets of mean variance portfolio theory to determine efficient portfolios and select the optimum portfolio.
The second part of the course will examine standard equilibrium pricing models such as the CAPM and the APT.
Part three will cover the pricing of debt and equity instruments in their respective markets..
The course will conclude with an introduction to option pricing and other derivatives.
Although much attention will be paid to the theoretical constructs of the material, the emphasis will be placed on applications throughout the course.
Course Materials.
The main text for the course is Bodie Z., A. Kane, A.J. Marcus, S. Perrakis and P. Ryan, Investments, 7th Canadian edition McGraw Hill Ryerson
The class will also have an OWL site where some but definitely NOT ALL extra material will be posted. The web site will not contain enough material for you to do well in this course. All topics, techniques and methodologies discussed in class are subject to examination.
Assessment.
First Term Test ………………..25%
Second Term Test……………...25%
*Participation……………… …10%
Final exam……………………..40%
*Participation is more than simply attending a class. It may involve short class quizzes, take home or web based