This course offers the financial theory and quantitative analytical tools necessary for understanding how stock, bond, and option prices are determined, and provides the skills required to make sound investment decisions. Topics covered include the following: the term structure of interest rates; portfolio selection based on mean-variance analysis; models of risk and return (including the CAPM and multifactor models); performance evaluation; market efficiency (including asset pricing anomalies and behavioral finance); derivative security pricing (including options, futures, forwards, and swaps).

Business 30000, 33001, and 41000 (or 41100): strict. This is a quantitative course. Students must be comfortable with statistics, linear algebra, calculus, and microeconomics at the level of the above courses. Familiarity with a spreadsheet package such as Excel is also necessary. Cannot enroll in BUSN 35000 if BUSN 20400 taken previously.

The main text used for the course is Bodie, Kane, and Marcus, Investments. A Canvas site will also be designed containing lecture notes, supplemental readings, cases, and articles.

Based on 5-6 homework assignments, 1-2 case write-ups and discussion, a mid-term, and a final exam.