This course introduces students to investment analysis including fundamental and industry analysis, as well as to selection of appropriate investment vehicles, including options strategies. It provides an understanding of how Balance Sheet and Income Statement can fit and be analyzed together.

The objective of the course is to study theory and empirical evidence relevant to portfolio management. An emphasis is placed on understanding how an investment professional would allocate funds in a hypothetical portfolio. Major topics include estimation of capital market parameters, trade-off between risk and return, optimal portfolio selection, equilibrium asset pricing models, and delegated portfolio management. Emphasis will be put on development of techniques that should be part of the tool kit of those interested in becoming professional investors and/or researchers in finance. The course material is tilted heavily towards equity markets since there are separate courses that cover fixed income markets and derivative securities.

Students participate in a project related to the financial investment field. The students will be exposed to intensive sessions that will enhance and develop their knowledge about research in the areas of the structure and functioning of equity, bond markets and derivative markets. It also focuses on reviewing the latest literature and research topics that include: modern portfolio theory, asset pricing factor models, behavioural finance, fixed income valuation, the term structure of interest rates and risk management using derivative securities.