IBF505 Investment Theory and Applications

This course starts with an introduction to the investment environment and financial instruments. It then leads to the basic utility theory under uncertainty and the discussion on how to make optimal decision under uncertainty. It will focus on the concepts of risk and return, diversification, asset allocation and efficient markets. Upon the completion of this course, students will understand market trading structures, equity, fixed income, and derivative securities, portfolio performance strategies and evaluation methods. Students will also know how to apply these theories to the analysis of optimal investment decisions in the financial market.

Pre-requisite: IBF006 Financial Management, or Undergraduate Course in Financial Management or Corporate Finance