Capital Market Theory 740. Fall 2013

Instructor: Professor Ludwig Chincarini, CFA, Ph.D.
Phone: (see syllabus)
Email: lbchincarini@usfca.edu [preferred email – subject line: Capital Market Theory]
Website: www.ludwigbc.com
Office Hours: [TBA] (Wednesday 5:15 – 6:15 PM or by request).
Class Hours & Location: Wednesdays, 1:00 P.M., Howard, Room 527

 

Course Description: The course focuses on four main topics. First, an in-depth analysis of investment portfolio construction is undertaken. This examines both portfolios that hold only risky assets and portfolios that also include a risk-free asset. This analysis incorporates theoretical, empirical and practical considerations. Second, the course considers a number of equilibrium theories regarding equities, based upon financial optimization. These theories involve a number of simplifying assumptions that must be examined in addressing the value of the proposed theory. Once this analysis is undertaken, we then consider the key implications for the portfolio decision. Third, we consider some methods of analysis for equities related to the equilibrium theories covered in the course. Once this analysis is undertaken, we then consider the key implications for the portfolio decision. Fourth, the efficient markets hypothesis is examined. This has important implications for active versus passive management, and the use of index funds. We then consider the key implications for the portfolio decision. This course has a theoretical and empirical perspective of the essence of what is often referred to as “modern portfolio theory”.

Course Syllabus