THEORY AND PORTFOLIO MANAGEMENT

Nicola Borri

Instructional goals

This class will teach advanced techniques to build a financial portfolio.

Prerequisites

As set by the Department of Economics and Finance

Intended learning outcomes

At the end of this course, students will be able to use advanced methods to manage and build investment portfolios.

Course Contents

1) Intro 2) Portfolio in theory and practice 3) Equilibrium in capital markets 4) Fixed income instruments. 5) Portfolio management

Reference Books

Bodie, Kane e Marcus "Investments", latest edition.

Teaching Methods

Classes, problem sets and TA sessions, midterm exam.

Assessment Method

Problem sets (30%), midterm (30%) and final exams (40%), a term paper (bonus point)

Thesis assignment criteria

Approval by the instructor of topic of the thesis.

Week 1 Contenuto sessioni on line e on campus

Intro: data, Bloomberg and Yahoo Finance

Week 2 Contenuto sessioni on line e on campus

Review of basic concepts in finance: notation, probability and statistics, matrix algebra

Week 3 Contenuto sessioni on line e on campus

Asset classes and financial instruments, ESG

Week 4 Contenuto sessioni on line e on campus

Optimal asset allocation

Week 5 Contenuto sessioni on line e on campus

Optimal portfolio

Week 6 Contenuto sessioni on line e on campus

Optimal portfolio on Matlab

Week 7 Contenuto sessioni on line e on campus

Index Models

Week 8 Contenuto sessioni on line e on campus

Factor models

Week 9 Contenuto sessioni on line e on campus

CAPM

Week 10 Contenuto sessioni on line e on campus

APT

Week 11 Contenuto sessioni on line e on campus

Factor Models

Week 12 Contenuto sessioni on line e on campus

Factor models Optimal portfolio in a multi-factor world