This unit develops a conceptual framework in the understanding of modern investments. MBA students learn about the investment industry, the risk-return relation, asset allocation between risky and risk-free assets, and the construction of optimal portfolios. The unit also provides insights in terms of models that explain the cross-section of stock returns, articulating and considering the market efficiency debate, differences between behavioural finance and rational expectations, bond portfolio management, and portfolio insurance techniques (i.e. hedging with derivatives). The unit concludes by examining portfolio performance measurement as the final step in the investment process. -- Course Website
Instructor: [email protected]
Prerequisites: MGSM835 and MGSM840
