By the end of this course the student will be able to understand the functions of the investment process with a reference to the notion of risk and return of single assets and its extension to multiple assets when forming a portfolio of assets.  Hence, the optimal portfolio selection and portfolio management assessment becomes the core idea of this course.

The students will also have the ability to analyze topics such as:

• Estimation of returns, and systematic and non-systematic risk of a portfolio.
• Identification of effective portfolios.
• Evaluation of investors’ risk/return preferences and formulation of excellent portfolios based on utility theory.
• Applying portfolio valuation measures in order to assess portfolio management and performance.
• Development of diversification strategies in order to reduce the non-systematic risk and hedge the risk of buying a portfolio.
• Forming portfolio management strategy

• The Investment Process and the Financial System
• Microeconomic view of investor behavior under uncertainty
• Risk & Return
• Portfolio Theory
• Models of one and multiple indicators
• Capital Market Theory: CAPM & APT Models
• Fundamental Analysis of Shares: DCF Models
• Market Efficiency
• Technical analysis
• Portfolio Management Strategies

Lectures (3 hours per week) and Tutorials (1 hour per week)

Written final exam that may include multiple choice questions, short answer questions, solving exercises, financial interpretation of results. The final grade of the course results from the performance in the final exam. In case the students prepare a paper, then the final grade results cumulatively from the performance in the final exam and the written paper.

Use of IT in teaching and communication with students (e-class).