1. MSc COURSE : ASSET PRICING AND PORTFOLIO THEORY

2. Aims Introduce basic concepts used to price financial assets Introduce basic concepts used to price financial assets Analyse relationships between risk and return Analyse relationships between risk and return –Diversification and Portfolio Theory –CAPM and other factor models Practical issues and empirical findings Practical issues and empirical findings

3. The Textbook

4. The Course Lecture 1 : Lecture 1 : –The Basics Lecture 2 : Lecture 2 : –Utility and Risk Aversion Lecture 3 : Lecture 3 : –Valuation Models : Equities and Bonds Lecture 4 : Lecture 4 : –Efficient Markets and Predictability of Stock Returns Lecture 5 : Lecture 5 : –Portfolio Theory

5. The Course (Cont.) Lecture 6 : Lecture 6 : –International Portfolio Diversification / Practical Issues Lecture 7 (just refining): Lecture 7 (just refining): –The CAPM Lecture 8 : Lecture 8 : –Factor Models Lecture 9 : Lecture 9 : –Empirical Evidence : CAPM and APT Lecture 10 : Lecture 10 : –Applications of Linear Factor Models

6. The Course (Cont.) Lecture 10 : Lecture 10 : –Valuation Models and Asset Returns Lecture 11 : Lecture 11 : –Stock Price Volatility Lecture 8 : Lecture 8 : –Factor Models Lecture 9 : Lecture 9 : –Empirical Evidence : CAPM and APT Lecture 10 : Lecture 10 : –Applications of Linear Factor Models