In line with the learning objectives of the Bachelor’s degree in Economics and Business Management (CLEGA), this course aims to provide the students with a general understanding of financial markets and financial instruments (bonds, equities, and derivatives). For each category of financial instrument, the course analyzes the main characteristics and trading methods, as well as the most common risk and return measures to support investment choices. The course also provides an overview of regulation in the field of investment services and mutual funds. With regard to asset allocation, after considering the main theoretical models (Markowitz's Portfolio Selection, Capital Asset Pricing Model), the course deals with investment strategies and methodologies for evaluating asset managers' performance.
At the end of the course, the students will have developed:
• an in-depth knowledge of financial markets and financial instruments, as well as the main theoretical portfolio models;
• a basic knowledge of the regulation applicable to investment services and mutual funds;
• the ability to calculate and interpret the main risk and return measures of financial instruments;
• the ability to critically apply the main techniques for assessing asset managers' performance.
At the end of the course, the students will have developed:
• an in-depth knowledge of financial markets and financial instruments, as well as the main theoretical portfolio models;
• a basic knowledge of the regulation applicable to investment services and mutual funds;
• the ability to calculate and interpret the main risk and return measures of financial instruments;
• the ability to critically apply the main techniques for assessing asset managers' performance.
teacher profile teaching materials
Part I
· Government bonds and corporate bonds
· Yiled curve
· Evaluation, return and risk of bonds
Part II
· Evaluation, return and risk of equity shares
· Markowitz Portfolio Selection and Capital Asset Pricing Model
Part III
· Investment services and asset allocation
· Asset allocation strategies
· Performance evaluation in asset allocation
Part IV
· Financial derivatives: forward, future, swap, option
· Investment certificates
Additional materials will be available in the course web page.
Programme
The program can be divided in four modules.Part I
· Government bonds and corporate bonds
· Yiled curve
· Evaluation, return and risk of bonds
Part II
· Evaluation, return and risk of equity shares
· Markowitz Portfolio Selection and Capital Asset Pricing Model
Part III
· Investment services and asset allocation
· Asset allocation strategies
· Performance evaluation in asset allocation
Part IV
· Financial derivatives: forward, future, swap, option
· Investment certificates
Core Documentation
Bodie Z., Kane A., Marcus A. J. Essentials of investments, 10th Edition, Mc-Graw Hill (chapters 1,2,3,4,5,6,7,8,10,11,13,15,17,18)Additional materials will be available in the course web page.
Reference Bibliography
Mishkin F.S., Eakins S. (2015) Financial Markets and Institutions, 8th Edition, Columbia UniversityType of delivery of the course
Face-to-face lectures In-class exercises Seminars and/or case studies discussions In case of extension of COVID-19 emergency, the course may be activated through an online platform.Attendance
Attendance in the Course is recommended, but not mandatory.Type of evaluation
A (mandatory) oral examination and two (optional) written tests (middle and end-course). The intermediate written tests (90 minutes) include open-ended questions, exercises, and multiple choice tests. The oral examination is a discussion about at least three topic of the program. The oral and written examinations are used to evaluate: i) the degree of knowledge of the syllabus; ii) analytical and critical judgement; iii) the ability to use technical language. In case of extension of COVID-19 emergency, exams may be run in form of oral examination through an online platform.