Financial Markets and Risk
Gain insight into financial market dynamics and risk management strategies.
The analysis of the management of financial risk recently tends towards strategies for hedging the portfolio, and for designing a investment strategy based on diversification. The course spans broad sections implementing the principles of variable income and fixed income.
The methodology is fully practical, and is required the use of laptop endowed with Excel. It is necesary to have previous basis on statistics and fundamentals of Excel. Smaller the group more focused the students in the exercises.
- The mean variance analysis for risk management.
- Behavior of Markets and Measuring Market Risk.
- Harry markowitz and the Modern Theory of Portfolio.
- The Envelope Portfolio and the Efficient Frontier. Construction.
- The CAPM model, the betas and the analysis of individual risk.
- The Black Litterman Model and the opinions about the portfolio proportions.
- Fixed Income: The bond and the term structure of interest rate.
By the end of the course, students will be able to understand the fundamentals of the structure, operation and behaviour of financial markets and the utilization of various financial instruments. Likewise, the student must develop skills in the use of Excel tools and the financial formulas and function incorporated into the Excel package. The student must be able to interpret the ouputs and make wise financial decisions in the context of Markets.
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