Course Detail

Investments (35000)

Course Description by Faculty

  • Bhattacharya, Ayan
  • Content
    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. The course combines a theoretical framework with applied analysis. Topics covered include: portfolio selection based on mean-variance analysis, models of risk and return (including the CAPM and multifactor models), performance evaluation of mutual funds and hedge funds, market efficiency and the random walk hypothesis, asset pricing anomalies and behavioral finance, derivative security pricing (including options, futures, forwards, and swaps), and the term structure of interest rates. Time permitting, we shall also cover some basics of decentralized and blockchain-based asset pricing.
  • Prerequisites
    Recommended: Business 30000, 33001, and 41000 (or 41100). Students must be comfortable with statistics, linear and matrix algebra, calculus, and microeconomics at the level of the above courses. Familiarity with a spreadsheet package such as Excel is important. Note that you might not want to take BUSN 35000 if you have already taken BUSN 20400 since the coverage is similar.
  • Materials

    The main text used for the course is Bodie, Kane, and Marcus, Investments.

    The course Canvas site will contain supplemental readings, cases, and articles.

  • Grades
    Based on homework assignments, case discussion participation, a mid-term, and a final. Provisional grades for non-Booth students provided, but no early final grades except under special circumstances. No auditors.
    Grades
    • Allow Provisional Grades (For joint degree and non-Booth students only)

    • Early Final Grades (For joint degree and non-Booth students only)

    Restrictions
    • No auditors

  • Syllabus
  • Autumn 2022Section: 35000-01TH 1:30PM-4:30PMHarper CenterC05In-Person Only
  • Autumn 2022Section: 35000-81M 6:00PM-9:00PMGleacher Center206In-Person Only
  • Autumn 2022Section: 35000-85S 9:00AM-12:00PMGleacher Center206In-Person Only
Description and/or course criteria last updated: August 1 2022