Class Financial Investments and Markets

Provide students with knowledge on the functioning of the markets, portfolio management and assessment of financial assets and portfolios. Teaching portfolio management techniques with the purpose of providing students with theoretical and practical skills to make financial investments in a professional context, namely:

• Know the way how capital markets work;
• Build efficient portfolios; Select optimal portfolios;
• Evaluate financial assets;
• Evaluate asset portfolio management;
• Manage bond portfolios;
• Discuss the efficiency of markets.
   

1. Introduction

1.1. The choice between two alternatives in a world with multiple assets and risk

2. Capital Markets

2.1. The agents of the capital market

2.2. The operations of the capital market

2.3. The regulation of the capital market and the products traded in the capital market

2.4. The Efficiency of Capital Markets

2.5. Rationale of agents and the market

3. Theories of the portfolio and equilibrium models

3.1. Portfolio Theories

3.2. Capital Asset Pricing Model (CAPM)

4. Variable-income securities

4.1. Typology and Characteristics of Stocks

4.2. Stocks valuation

4.3. Rights Assessment

5. Fixed income securities

5.1. Typology and Characteristics of Bonds

5.2. Yield Curves 4.3. Bond¿s valuation

5.4. Interest Rate Risk Measures

5.5. Portfolio Management Strategies

Elaboration of practical cases throughout the course.

Availability of adapted real cases for elaboration by the students.

• Guia do Investidor, Comissão do Mercado de Valores Mobiliários
• Elton, E. J., Gruber, M. J., Brown, S. J. and Goetzmann, W. N. (2014) Modern Portfolio Theory and Investment Analysis, 9th Edition, John Wiley & Sons;
• Ross, S. A., Westerfield, R. W.,  Jaffee, J. F. & Jordan B. (2019) Corporate Finance, 12th Ed., McGraw-Hill Education
• Pires, Cesaltina (2011), Mercados e Instrumentos Financeiros, 3ª  ed,  Escolar Editora;
• Pinho, Carlos e Soares, Isabel (2018), Finanças - Mercados e Instrumentos, 3ª Ed., Edições Sílabo;
• Elementos de estudo distribuídos nas aulas (sebentas e casos práticos)