Financial Investments and Markets

Presentation

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.

Part of this Programme

Business Management

Level of Qualification|Semesters|ECTS

| Semestral | 5

Year | Type of course unit | Language

3 |Mandatory |Português

Code

ULHT72-3515

Recommended complementary curricular units

Financial Mathematics

Corporate Finance

Prerequisites and co-requisites

n/a

Professional Internship

Não

Syllabus

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 thecapital 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
5.3. Bonds valuation
5.4. Interest Rate Risk Measures
5.5. Portfolio Management Strategies

Objectives

Provide students with the necessary techniques for the analysis and evaluation of financial assets, in particular those related to bonds and stocks, previously addressing the methodologies of valuation and analysis of profitability and risk.

Teaching methodologies and assessment

Theoretical-practical classes of 120 minutes. In the classes will be applied several pedagogical methods, namely:

• Presentation of the theoretical framework;
• Performing exercises.

The final classification is based on a process of continuous evaluation throughout the semester, the final classification being the result of the following elements and respective weightings:

• 1st Frequency 50%;
• 2nd Frequency 50%.

To obtain approval in the unit in continuous evaluation regime, the minimum classification is 9.5 values. If the student does not reach that minimum level, he/she must submit to the final exam, in which case the rules resulting from the evaluation regulations in practice at the University are applied.

References

• Guia do Investidor, Comissão do Mercado de Valores Mobiliários
• Elton, E. J., Gruber, M. J., Brown, S. J. and Goetzmann, W. N. (2010) Modern Portfolio Theory and Investment Analysis, 8th Edition, John Wiley & Sons, Inc, New York;
• Ross, S. A., Westerfield, R. W.,  Jaffee, J. F. & Jordan B. (2016) Corporate Finance, 11th Ed., McGraw-Hill Education
• Pires, Cesaltina (2006), Mercados e Instrumentos Financeiros, Escolar Editora;
• Pinho, Carlos e Soares, Isabel (2008), Finanças, Mercados e Instrumentos, 2ª Ed., Edições Sílabo;
• Elementos de estudo distribuídos nas aulas (sebentas e casos práticos)

Office Hours