NOTE: This course is required for enrollment in most upper-level finance courses (8300 and 9300) and must be taken prior to or concurrently with any upper-level finance course. It is not required for upper-level economics courses (8200 and 9200).
This is a first course in capital markets and investments. The course has three principal goals:
- 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.
- To introduce the following concepts:
- The term structure of interest rates.
- Portfolio theory, risk-control, and diversification.
- Equilibrium asset pricing models; the CAPM.
- Efficient and inefficient markets.
- Performance evaluation.
- Pricing and hedging basic derivative securities (futures and options)
- To provide sufficient background knowledge for students seeking an overview of capital markets and an introduction to advanced finance courses.
Senior Vice Dean of Faculty Affairs
Kent Daniel is the Senior Vice Dean of Faculty Affairs and the Jean-Marie Eveillard/First Eagle Investment Management Professor of Business in the Finance Division at the Graduate School of Business at Columbia University. From 1996 to 2006, Kent was at the Kellogg School of Management at Northwestern University, where he was the John and Helen Kellogg Distinguished Professor of Finance (on leave from 2004-...