Introduction to Finance and Investment

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Course Description

Introduction to modern quantitative finance and investments. The course focuses on the basic principles underlying financial decision making which are applicable to all forms of investment: stocks, bonds, real estate, corporate finance, etc., and how they are applied in practice. Topics: interest rates; evaluating investments: present value and internal rate of return; fixed-income markets: bonds, yield, duration, portfolio immunization; term structure of interest rates; measuring risk: volatility, value at risk, conditional value at risk; designing optimal security portfolios; the capital asset pricing model, arbitrage pricing theory. Group projects involving financial market data. No prior knowledge of finance required. Prerequisite: basic preparation in probability, statistics, and optimization.

Grading Basis

ROP - Letter or Credit/No Credit

Min

4

Max

4

Course Repeatable for Degree Credit?

No

Course Component

Lecture

Enrollment Optional?

No

Programs

MS&E145 is a completion requirement for: