Students are expected to have completed core courses in basic finance, statistics and mathematics.

- to develop an understanding on how to optimally allocate funds across alternative asset classes to form a portfolio,

- to expand the knowledge of CAMP and to use alternative models in determining the expected returns

- to examine market efficiency in practice

- to construct and use alternative methodologies to evaluate portfolio performance; to examine alternative portfolio strategies

This course studies how financial assets can be combined, considering the risk-return relationship, and it covers both theoretical models for financial assests and methods for evaluating portfolios in practice. 

Specifically, the course focuses the following areas:

- Risk, Return, Portfolio Mathematics and Utility Theory;

- Optimal Portfolio Selection and Optimal Allocation between the Optimal Portfolio and the Risk Free Asset;

- Models of Risk and Expected Returns;

- Global Portfolio Diversification;

- Applied Portfolio Strategies and Performance Evaluation.

• (A) Bodie,Z., Kane, A., Marcus,A.(2021) Investments, 12ed,McGraw Hill NY,

chapters: 5,6,7,8,9,10,11,12, A 24,25,26,27.

A not manadatory team work project, could be proposes for groups of maximum 4 students. Supplementary points will be awarded to participating students, which will be addedd to the final grade. OBS. The points will be added to the final grade IF the written exam is evaluated with minimum18 points.

• Interactive lectures, seminars, case studies, assignments.

• The final score will be calculated as follows: Homeworks/Data exercises 30%

  Final exam 70%

  The final exam is written, and it will include:

  - multiple choice questions, aimed to assess the level of understanding of the theory, - open questions, in order to test the ability to discuss issues on portfolio theory and portfolio diversification,

  - numerical problems, aimed to evaluate the individual ability to put in practice theoretical concepts of portfolio theory

English