Introduction to Finance and Investment

MS&E
145
Instructors
Chen, G. (TA)
Fan, Y. (TA)
Zanotti, G. (TA)
Infanger, G. (PI)
Section Number
1
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
Letter or Credit/No Credit
Units
4
Undergraduate
Course Tags
Advanced Policy Analysis
Academic Year
Quarter
Autumn
Section Days
Tuesday Thursday
Start Time
1:30 PM
End Time
3:30 PM
Location
McCullough 115