Portfolio Analysis and Management

Students acquire specialized knowledge on the theory and practice related to the valuation of securities by analyzing the institutional functioning of the market where they trade and the economic importance and leverage of the individual financial "tools" of this market. Securities valuation is related to the attempt to determine whether an investment has been correctly valued by investors in the market, emphasizing also on sustainable investments and relating criteria. The modern approach emphasizes not only the assessment of investment returns, but also the risk inherent in these investments, especially when they form part of a portfolio. In addition, this course aims to provide knowledge that will lead to a better understanding of how investors operate in the markets by discussing both investment fundamentals and issues of investment psychology. The course introduces the concepts of risk and return, the time value of money, methods of valuing stocks and bonds, and the instruments/tools of money and capital markets. The theory of market efficiency, as well as portfolio and capital market theories and specialized topics are also developed. The investor's profile during portfolio creation, asset allocation, portfolio management strategies are discussed. Technical analysis is also discussed. The course concludes with an introduction to derivative securities.