This course aims at providing students with fundamental theoretical and applied knowledge in modern financial engineering. Introduction to financial management, with an emphasis on portfolio management and theoretical fundamentals of modern financial economics.

By the end of the course, students should be able to: 1) Apply quantitative measures of return on investments in securities, in order to assess their risk, correlations, price and profitability. 2) Construct an efficient portfolio of securities. 3) Analyze the information from probability distribution functions and moments of random variables in financial management. 4) Value bonds and stocks. 5) Understand the basic types of financial derivatives such as forward, futures contracts and options.

Investment environment; Financial markets and instruments; Securities trading; Mutual funds; Risk and return on investment; Capital allocation and efficient portfolios; The Capital Asset Pricing Model; Arbitrage Pricing Theory; Theory of efficient markets; Technical analysis; Bonds; Security analysis; Stocks; Financial derivatives.

Educational methods include lectures, tutorials and lab sessions (in the computer classroom), as well as office hours. During the course work, students are encouraged to participate in intensive class discussions, problem-oriented reasoning, independent study work and be active in class. The prerequisite to write the final exam is to complete all the pre-exam assignments by earning at least 15 points.