This is an introduction to an investment course that focuses on basic
models used in the financial industry for investment and decision
making. The course begins with an overview of the investment environment
in developed markets, followed by a more in-depth analysis of key
investment topics. These topics include modern portfolio theory, asset
pricing models, term structure of interest rates, stock and bond
portfolio management and evaluation of portfolio performance. Modern
finance extensively uses the concept of arbitrage, or rather the lack of
it in financial markets, and the course highlights such uses in
different circumstances.
The course takes a hands-on approach with the aid of a software package,
Maple(TM), the details of which will be explained during the first
lecture. Consequently, most lectures will be divided between a
theoretical lecture and a lab - a practical implementation of the
theoretical material of the lecture. The use of the Maple(TM) software
in this course simulates, to a certain extent, a professional
environment. It allows visualizations of different concepts, minimizes
tedious algebraic calculations and the use of calculus while equipping
students with intuitive understanding. This is facilitated by the
symbolic power of Maple(TM) and its excellent graphic and animation
capabilities.
Institutional material is surveyed very concisely, so the reader gets an
appreciation of the investment "lay of the land". It is enhanced by an
eLearning unit, self-administrated quizzes as well as a stock market
game, utilizing StockTrack(TM). StockTrack(TM) introduces students to
trading in the real world by practicing different types of orders as
well as introducing conventions common in the investment community.
