Investment companies are subject to closer study.
The fundamentals of portfolio theory are introduced and applied to investment management. The course introduces financial derivatives, including options, futures, forward rate agreements, and interest rate swaps, and relates the use of derivatives to fixed-income investment, portfolio analysis, and interest rate risk management. The course is primarily based on lectures, where students are encouraged to contribute to discussions about theoretical constructs and their practical applications. There will be two opportunities to work and apply the material as students are required to complete individually written reports in the form of a mutual fund analysis and a stock valuation analysis. Achieving a sufficient level of proficiency in this course will require that students complete examples and problem sets in preparation for classes.