Investments and Financial Markets

In this course we will consider the role that the investment process plays in society and will explore the recent growth in financial markets. We will also analyze the internal workings of markets for equities, bonds, commodities, derivatives, and foreign exchange, and discuss both their positive and negative aspects. We will employ a wide range of techniques to analyze markets, such as: valuation models and portfolio diversification in equities; the yield curve and concepts such as duration and convexity in bonds; fundamental analysis and technical analysis in commodities; interest rate parity and purchasing power parity in the foreign exchange; and options pricing model in derivatives. The course will conclude with a discussion of whether these markets are helping or hurting society, and how they might be modified. (ECON 0150 and ECON 0155 and ECON 0210) 3 hrs. lect., 1 hr. lab