# CFRM 501: Investment Science

> Reading Material:
>
> * *Investment Science*, D. Luenberger, 1997.
> * *Asset Management: A Systematic Approach to Factor Investing*, A. Ang, 2014.
> * *Asset Pricing and Portfolio Choice*, K. Back, 2017.

This course is an introduction to the mathematical, statistical and economic foundations of Finance. Learning of the theoretical concepts will be reinforced through use of computing exercises. The material is similar in scope to an MBA level investments course, but at a significantly higher quantitative level. The course aims to establish various quantitative methods for investment decision-making in the context of modern financial markets.

1. Theory of Capital Markets and Returns
2. Expected Utility Theory
3. Mean-Variance Analysis
4. The Capital-Asset Pricing Model
5. Pricing Factors and Statistical Factors
6. Arbitrage and Equilibrium
7. Rational Expectations and Market Efficiency