Graph of utility function. (Graph by Prof. Reto Gallati.)
Instructor(s)
Prof. Reto Gallati
MIT Course Number
15.433
As Taught In
Spring 2003
Level
Graduate
Translated Versions
Course Description
Course Features
Course Highlights
This course teaches how to make sound investment decisions through in-depth knowledge of the financial markets, rigorous analytical thinking and precise mathematical derivation. Included is a comprehensive set of lecture notes for all 23 lectures to explain core concepts. Also, students gain hands-on experience with optimization, data analysis, and other quantitative techniques by completing the five group assignments.
Course Description
The focus of this course is on financial theory and empirical evidence for making investment decisions. Topics include: portfolio theory; equilibrium models of security prices (including the capital asset pricing model and the arbitrage pricing theory); the empirical behavior of security prices; market efficiency; performance evaluation; and behavioral finance.