RSM1231H: Finance I Global Markets and Valuation

Managers in any corporate function should understand how to value basic financial assets such as bonds, stocks, and options. The course will examine how these assets "should" be priced and why their actual prices are sometimes not the same because of institutional factors or market frictions. This course will teach key investment concepts and techniques in the fixed income, equity, and options markets. We will study the optimal construction of combinations (portfolios) of securities with a focus on the trade-off between risk and return. We will emphasize the concepts of capital markets in a real-world setting using real-world problems and examples from financial markets around the world. Students should be aware that finance is inherently quantitative and that many of the important problems must be attacked by theoretical and mathematical methods. The most important mathematical relationships need to be understood by all general managers, not just finance professionals like investment bankers. Students are forewarned that this course will be analytically rigorous.

0.33
St. George