Semester.ly

Johns Hopkins University | EN.550.442

Investment Science

4.0

credits

Average Course Rating

(4.05)

This course offers a rigorous treatment of the subject of investment as a scientific discipline. Mathematics is employed as the main tool to convey the principles of investment science and their use to make investment calculations for good decision-making. Topics covered in the course include the basic theory of interest and its application to fixed-income securities, cash flow analysis and capital budgeting, mean-variance portfolio theory, and the associated capital asset pricing model, utility function theory and risk analysis, derivative securities and basic option theory, portfolio evaluation. The student is expected to be comfortable with the use of mathematics as a method of deduction and problem solving. EN.550.442 will have the same lectures as EN.550.342, but the assignments and examinations will be more mathematically rigorous. EN.550.442 is intended primarily for advanced undergraduates and graduate students concentrating in financial mathematics. Students may not receive credit for both EN.550.342 and EN.550.442.

Fall 2013

(4.08)

Fall 2014

(4.03)

Fall 2013

Professor: Peng Liu

(4.08)

Students liked the real-world application of the materials covered in class, and found that the professor taught each model fairly, pointing out both the strengths and weaknesses. Some of the students felt that there was too much material to cover, and that some of the models are not applicable. Students suggested lightening the course load by focusing on fewer models with more depth. Prospective students should have a general understanding of investments and some calculus. Students should be prepared for a course that focuses on math models and their applications to the financial world.

Fall 2014

Professor: Peng Liu

(4.03)

Students believed the best aspect of this course was the relevance of the material delivered by a professor who connected the material to examples from their own work experience in the field of finance. Students thought the weakest element of the class was the textbook, and that a different choice could have been more useful. Students thought the course could also have benefitted from more practice problems being provided to prepare for the exams. Students thought that it was valuable for potential participants to know that knowledge of either R or MATLAB programming was necessary to complete the homework.