Financial Markets and Investments (1 º Sem 2015/2016)

-Financial markets and their instruments
-Definitions of risk and return
-Two asset portfolios
-The notion of efficient portfolios
-Various market conditions: existence (or not) of a risk-free asset, possibility (or not) of (un)constrained short selling
-Finding the efficient frontier
-Factor models: single and multi-factor models
-Utility theory and deriving investor?s utility function
-Expected utility theory (EUT) and optimal portfolios
-Stochastic Dominance
-Risk Measures
-Equilibrium models: capital asset pricing model (CAPM), arbitrage pricing theory (APT)
-Market efficiency and rationality
-Behavioural issues and alternatives to EUT