This website will provide all course related material for students taking Investment Analysis in the second semester (2011/2012) at Trinity College, Dublin.
Across the top of this site are links to notices, lecture notes, tutorials and a page where students can contact me directly.
If you have a twitter account you can click the link to the left and follow ec3050. Any updates to the website (new lecture notes and tutoirals will be posted on twitter). Please note, twitter only updates followers on changes to this website. Students with a twitter account gain no extra material.
Lectures
Monday at 17.00 in the MacNeill Lecture Theatre 3 in the Hamilton Building
Tuesday at 18.00 in Room 2043 in the Arts Building
Tutorials
Thursday at 09.00 in Room 4050A, Arts Block
Thursday at 17.00 in M20, Museum Building
Course Description
The course will focus on how equity-type securities are valued in the market. It will begin with a summary of conventional portfolio theory, moving on to the benchmark models of market pricing (Capital Asset Pricing Model & Arbitrage Pricing Theory). Leverage and its impact on equity prices will be discussed. Then we proceed to looking at evidence on the degree to which financial markets are efficient, with an emphasis on behavioural theories and irrational market pricing leading to bubbles. Time permitting, the elements of the pricing of equity options will be presented with a discussion of the numerous applications of this theory.
Main Text: Bodie, Zvi, Alex Kane and Alan J. Marcus: Investments (McGraw-Hill/Irwin) (8th Edition, 2009) (Earlier editions will do)
Supplementary Text: Elton, Edwin J., Martin J. Gruber, Stephen J. Brown and William N. Goetzmann: Modern Portfolio Theory (John Wiley & Sons) (7th Edition, 2006).
There are several copies of each of these in the library.