Investments can be thought of as postponement of today’s consumption for higher consumption in future periods. In order to achieve this objective for both individuals and organizations, it is important to understand the available instruments and techniques through which they can achieve this goal. The aim of the course unit is to describe the principles of investments’ management, the theoretical and practical aspects of risk and return measurement for individual securities and for portfolios of investments, the concepts of diversification, of portfolio selection, the construction and evaluation of portfolios as well as equilibrium models of asset prices, against which market prices of securities are compared, and the international investment environment.

 

The specific educational objectives of the course unit are:

To introduce students to the nature and role of portfolio theory in investment analysis

To familiarize students with the portfolio selection and management process

To examine recent developments in the theory and practice of portfolio management

Moreover, the course will make it possible for participants to acquire an understanding of portfolio risk and return characteristics, use of diversification for risk reduction, determination of efficient and optimal portfolios with and without short-selling restrictions, evaluation of portfolio performance and role of asset pricing models for pricing securities. This will make it possible for participants to seek positions in asset management, and in research and investment analysis departments of large financial institutions.