6cp; prerequisite(s): 35102 Mathematics 2; 25300 Fundamentals of Business Finance Undergraduate
This subject introduces students to the theory and practice of modern portfolio theory and its application to investment analysis at a technically advanced level. The subject introduces the foundations of investment decision making under certainty and uncertainty, utility theory and portfolio selection via the mean-variance approach. The capital asset pricing model and the arbitrage-pricing model are also developed. The empirical testing of these equilibrium pricing models is discussed.
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