Investment and Portfolio Theory

The American College of Greece

Course Description

  • Course Name

    Investment and Portfolio Theory

  • Host University

    The American College of Greece

  • Location

    Athens, Greece

  • Area of Study

    Economics

  • Language Level

    Taught In English

  • Prerequisites

    EC 1000 Principles of Microeconomics
    EC 1101 Principles of Macroeconomics
    MA 1009 Mathematics for Business Economics and Sciences
    MA 2010 Statistics I

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • US Credits

    3
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    DESCRIPTION: 
    Investment theory and practice including financial markets, risk and return, securities, asset allocation and diversification. Utilization of analytical techniques available for investment planning and selection in the environment in which investment decisions are made. Application of models and investment strategies to analyze and manage portfolios.

    RATIONALE: 
    The subject matter of financial management is in the process of rapid change. A growing analytical content, virtually nonexistent a few years ago, has displaced the earlier descriptive treatment as the center of emphasis in the field. This course acquaints the student with recently developed methods for making decisions that involve interrelated uncertain outcomes. It emphasizes analytical techniques to the exclusion of institutional and descriptive material. The analytical tools are as useful in solving cases as they are in research and should, therefore, appeal not only to research oriented business and economics students but also to students training to be managers.

    LEARNING OUTCOMES: 
    As a result of taking this course, the student should be able to:
    1. Demonstrate detailed knowledge of the statistical input requirements of portfolio analysis.
    2. Differentiate between alternative portfolios on the basis of established criteria such as the mean-variance criterion.
    3. Apply portfolio theory to investment decision problems.
    4. Formulate the portfolio selection problem.
    5. Evaluate alternative investment opportunities for the purpose of selecting the best from the investor's point of view.
    6. Have an appreciation of empirical issues surrounding the testing of capital market equilibrium pricing models.

    METHOD OF TEACHING AND LEARNING: 
    In congruence with the learning and teaching strategy of the college, the following tools are used:
    - Classes consist of lectures, problem-solving sessions, and class discussions of recent equity market developments. 
    2
    - Office hours: students are encouraged to make full use of the office hours of their instructor, where they can ask questions and go over lecture material.
    - Use of a blackboard site, where instructors post lecture notes, assignment instructions, timely announcements, as well as additional resources.