Investors face two basic decisions:
- How should they maximise the returns they make while taking on the least amount of risk?
- Which of the numerous investment opportunities they are offered - stocks, bonds, options, derivatives, etc. - by firms, offers them the best combination of return and risk characteristics?
This programme will focus on these two questions: how should investors value the different financial instruments they are being offered by companies, and what are the risk-return choices they have? While it examines the decision problem from the perspective of the investor, it is important to understand this is extremely relevant from the company perspective as well. Understanding what investors are looking for enables firms to design securities that will raise interest from investors, either stocks, bonds or derivatives.
It will benefit practitioners who want to build their existing skills in valuing securities and does assume a very basic understanding of finance and accounting principles. It follows on very well from our introductory programme Finance & Accounting for Non-Financial Managers.
It is particularly suited for corporate managers, analysts, and portfolio managers at the beginning of their careers, who would like a short but comprehensive introduction to the valuation of different types of financial securities, such as stocks, bonds, retirement annuities, etc.
Watch our interview with Academic Programme Director Professor Raghavendra Rau on why finance is less about profits and more about value: