This course will draw upon the theory and methods of microeconomics and applied econometrics to investigate how individual and institutional investors optimize investment portfolios to maximize risk-adjusted returns. The course is organized into five blocks: (i) financial markets and institutions; (ii) optimal asset allocation with uncertain returns; (iii) modem portfolio theory, which explores asset pricing and market efficiency; (iv) security valuation; and (v) portfolio management - how individual and institutional investors manage investment portfolios to maximize risk-adjusted returns and achieve efficient diversification, given preferences for risk.
