Economics of Investments and Financial Management
This course provides students with a thorough introduction to the theoretical and practical aspects of investments, securities, securities markets and investment institutions. The primary objective of this course is to provide the student with the theoretical background and analytical tools necessary to sound investment decision-making. Discussions in this course will cover a broad range of securities and markets, including equities, debt instruments, foreign exchange, options and futures contracts. Students will learn how to price, value, hedge and apply various models in practical settings. This course is particularly important for students seeking to work in finance. Topics covered include Modern Portfolio Theory and management, the Efficient Market Hypothesis, rational investor paradigms, valuation, fixed income instruments, term structure modeling, derivatives, market microstructure, regulation and behavioral finance. Prerequisite: 440.601 Microeconomic Theory and 440.640 Financial Economics. Corequisites: 440.606 Econometrics.

Perhaps the best way to begin this course is with the course textbook, Financial Trading and Investing. More details are provided in the course syllabus and detailed notes and problems (with solutions) are available in the course textbook and Readings and Coursepack. In addition to the textbook and Readings and Coursepack, this course will make extensive use of PowerPoint slides and various spreadsheets. Other useful information and links are provided below and in Teaching and Courses. Students are encouraged to contact the instructor about any questions or problems that they encounter. Numerous problems and exercises with solutions are available through links below to the Readings and Coursepack, Sample Exams and Additional Problems

Students should not attempt this course with an insufficient quantitative background (including comprehension of subject material from linear mathematics, statistics and freshman-year calculus). If you took a math refresher course after entering JHU, you should find the course sufficient for purposes of this course. If not, or you wish to ensure that your math skills are sufficient, read through the Elementary Mathematics Review, Chapters 5, 7 and 8. At least glance through this document to make sure that you do not require further review. It should be useful for this course, targeted for this course, maintaining the same notation, etc. If your background is too rusty for even this document, then you have quite a bit of work to quickly accomplish by the second week of class. Very elementary prerequisite work is available through the Elementary Mathematics Review link. Other useful information for this course and links are provided in the course syllabus below and in my page for Teaching and Courses. Contact information is listed on the course syllabus.

Course Syllabus Exam Preparation Suggestions Useful Links for  Students
Readings and Coursepack Sample Exams Videos
Projects Elementary Mathematics Review Finance Reading Suggestions
Additional Problems Spreadsheets and Other Tools Slides
Additional Readings Lecture Spreadsheets
Send an e-mail to John Teall

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updated 01/11/2023