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FINE 7110-21 Investments

Meets:
Tuesday Evenings
6:30 – 9:15
GWBC Room 470
Syllabus

Revised Schedule as of Sept. 10

Professor: Bill Reese
E-mail: wreese@tulane.edu
Phone: (504) 865-5465
Office Hours: Wednesdays 4:00 – 5:00 in Room 604 or via Zoom

 

Course Description
The first half of this course will be an in-depth study of portfolio theory. We will develop the foundations of Modern Portfolio Theory and show how you would use its principals to calculate mean/variance efficient portfolios. We will also look at alternatives to MPT with multifactor models, specifically the Fama/French three-factor model. The second half of the course will focus on fixed income analytics. We will discuss how to price various types of fixed income securities and how to measure their interest rate risk. We’ll learn how to hedge interest rate risk, and how to incorporate call and conversion features into a bond’s price. We’ll also examine various theories about the term structure of interest rates, deriving implied forward interest rates and bootstrapping yield curves. We will also learn how to conduct an event study, and discuss the efficient market hypothesis and some of its alternatives.