This course is an applied course on quantitative analysis of investment opportunities in debt, equity, property and derivatives markets.  We consider valuation of macro assets (such as government bonds, diversified portfolios of equities, property) as well as the valuation of equities of individual firms and of their risky debt. We rely on theoretical concepts that students have learnt in their core courses (such as NPV, the CAPM, no-arbitrage pricing of derivatives) and also examine in depth the historical behaviour of asset returns and the history of the tools used by practitioners and academics. The focus is on applying the same core systematic quantitative framework of modern finance to all of the above securities markets to evaluate investment opportunities in realistic, sometimes, live situations. Is Amazon overpriced compared to other bricks and mortar retailers? Do EM equities offer value compared to DM equities? Is property overvalued? How does one value a loan, let alone a bank? The course involves in-class analysis of investment and accounting tools and questions, extensive analysis of financial data, study of financial statements and analyst reports and two projects. 

Students will be expected to complete 2 group projects. In the first project, students study the historical performance of a chosen publicly traded company and analyse and value the equity on a forward-looking basis, evaluate its risks and make an investment recommendation. The second project requires the students to study and critically examine the investment decisions and style of a well-known value investor.