Investment decisions determine how individuals, corporations, pension funds, mutual funds, insurance companies, sovereign wealth funds, and institutional investors allocate capital to generate returns while managing risk. Asset pricing provides the framework for understanding why securities and other investment assets are valued the way they are, how markets incorporate information, and how investors assess expected returns relative to uncertainty. Together, investments and asset pricing form the foundation of modern portfolio management, capital allocation, and financial decision-making.
This course provides a practical, management-oriented study of investments and asset pricing. Rather than focusing primarily on mathematical proofs or theoretical models, students will learn how investment professionals evaluate financial assets, construct diversified portfolios, assess risk, interpret market behavior, estimate intrinsic value, and make informed investment decisions. Students will examine how macroeconomic conditions, interest rates, inflation, corporate performance, investor behavior, and market expectations influence asset prices across different asset classes.
Throughout the course, students will study equities, fixed-income securities, real estate, commodities, alternative investments, derivatives, portfolio management, valuation techniques, market efficiency, behavioral influences, and institutional investing. The emphasis is on applying investment principles to real-world financial decisions made by portfolio managers, corporate executives, financial advisors, institutional investors, and business leaders.
Course Objectives
By the end of this course, students will be able to:
• Understand the principles of investment management and asset pricing.
• Evaluate major financial asset classes and their investment characteristics.
• Analyze the relationship between risk and expected return.
• Assess the factors that influence security prices in financial markets.
• Apply valuation techniques to investment decisions.
• Construct diversified investment portfolios aligned with investment objectives.
• Understand fixed-income, equity, real estate, commodity, and alternative investments.
• Evaluate behavioral influences on investment decisions and market pricing.
• Assess macroeconomic and global factors affecting investment performance.
• Integrate investment analysis into corporate and personal financial decision-making.
