Global Investment Analysis and Derivatives
'Students are introduced to investments and derivatives: investment procedures, basic analytical techniques and, factors influencing risk/return tradeoffs. A variety of models are discussed, including the CAPM (Capital Asset Pricing Model), discounted cash flow models, and relative valuation models. The focus then moves to the global financial markets, such as global debt and equity markets. The course also involves virtual trading and team projects. The second half of the course introduces the use of derivative securities and strategies to control and monitor risk. As the business world grows more globalized, understanding of derivative securities gets more important, particularly for corporate managers dealing with currency risk. Though the topics contain somewhat complicated mathematics and statistics, the emphasis is more on strategy. Corporate managers need to be well versed in strategies of derivatives and risk management involving global risks. The primary derivative types discussed are options, swaps and futures. The primary risks discussed are foreign credit risk, multinational interest rate risk, and currency risk.'