This course has three goals:
1. To introduce the principles
of asset valuation from an applied perspective. The majority of the
class is concerned with the valuation of financial securities. The
valuation issues to be discussed are heavily used in portfolio
management and risk management applications.
2. To develop the
following concepts: arbitrage, the term structure of interest rates,
diversification, the Capital Asset Pricing Model (CAPM), efficient and
inefficient markets, performance evaluation, and derivative securities,
3. To provide sufficient background
knowledge for students seeking an overview of capital markets and an
introduction to advanced finance courses.
The main topics can be summarized in seven groups:
1. 2 classes: Introductory Concepts
2. 4 classes: Valuation of Fixed Income Securities
3. 2 classes: Valuation of Securities with Risky Payoffs
4. 4 classes: Portfolio Choice
5. 3 classes: Evaluating Investment Performance
6. 3 classes: Behavioral Finance
7. 6 classes: Valuation of Options
Throughout the course, we will address two basic questions:
1. Which methods do we use to value securities?
2. How do we choose securities to maximize expected return for a given amount of risk?
Mark A. Zurack teaches Capital Markets and Investments, Equity Derivatives and Equity Markets and Products at Columbia Business School, and also teaches at Cornell University as an Adjunct Professor. Mark is currently on the Board of Directors of the Binghamton University Foundation and also serves on the Boards of the Alzheimer's Association, Teach For America, Upper West Success Academy, ETC, Southampton Bath and...