Week |
Subject |
Related Preparation |
1) |
Introduction of the course
• Realization of real and financial assets
• Understanding the relationship between financial markets and economy
• Explaining the basic features of money markets
• Explanation of key features of bond markets
• Explanation of the basic features of stock markets
• Discussion of stock and bond market indices
• Explanation of basic features of derivatives markets
• syllabus
• Presentation of financial markets
• Discussion of consumption timing, risk allocation, ownership and management separation, corporate governance and corporate ethics issues within the framework of investments
• Discussion of the money markets and bond markets
• Explanation of options and futures contracts. |
None |
2) |
• Analysis of the Markowitz Portfolio Model
• Optimal portfolio and normal non-distributed returns
• Risk pool and risk sharing in long-term investments
• Illustrative example of effective diversification
• Classification of portfolio statistics
• Analysis of the smallest variant limit of risky assets
• Analysis of the effective limit of risky assets
• Creating the smallest variance portfolio
• Discussing the power of diversification in portfolio strategies
• Portfolio statistics |
Review of the course. |
3) |
• Explaining the relationship between diversification and portfolio risk
• Explanation of portfolios consisting of two risky asset groups
• Explanation of portfolios with the smallest variance
• Discussion of asset allocation within the framework of stock, bond and treasury bill options
• Defining the Markowitz Portfolio Model
• Systematic and non-systematic risk
• Elimination of non-systematic risk through asset diversification
• Investigation of the correlation between portfolio debt-capital instruments
• Relationship between investment weights and yield
• Creation and analysis of the portfolio with the smallest variance
• Discussion of the smallest variance limit |
Review of the course. |
4) |
Explaining the concepts of risk and risk avoidance
• Identification of risk-free assets
• Explanation of capital allocation to risk-free and risk-free (government bonds only)
• Explanation of the capital allocation line
• The difference between the concepts of risk, speculation and gambling
• To explain the concept of risk avoidance within the framework of benefit analysis
• Distinguishing risk-avoiding, risk-loving and risk-neutral communities.
• Average-variance criterion and portfolio indeterminate curve
• Elements of risky portfolio
• Content and discussion of the concept of risk-free assets.
• Investment opportunities in portfolios of risk free assets (asset groups) at a risk
• Identify the effect of borrowing and lending rates on the capital allocation curve. |
Review of the course. |
5) |
Explaining the share supply.
• Explanation of securities trading transactions
• Understanding the structural differences of financial markets in different countries
• Explaining the types of investment trusts
• Explaining the properties of investment funds
• Discussion on investment banking and public offering
• Stock market orders (market orders / conditional orders)
• Mechanism of stock transactions
• Comparison of various stock markets in the world.
• Border / margin purchase and short sales. |
Discussion of views.
Lecture. |
5) |
• Explaining the relationship between risk and asset allocation (portfolio allocation)
• Passive strategies: Capital Market Line
• St. Explaining the St. Petersburg Paradox
• Explaining the expected benefit function
• Benefit from benefit maximization for capital allocation to risky assets
• Capital allocation to risky assets for various degrees of risk aversion
• The relationship between the St.Petersburg Paradox and the expected benefit function
• Implications for the passive portfolio strategy |
Review of the course. |
6) |
• Explaining the relationship between diversification and portfolio risk
• Explanation of portfolios consisting of two risky asset groups
• Explanation of portfolios with the smallest variance
• Discussion of asset allocation within the framework of stock, bond and treasury bill options
• Defining the Markowitz Portfolio Model
• Systematic and non-systematic risk
• Elimination of non-systematic risk through asset diversification
• Investigation of the correlation between portfolio debt-capital instruments
• Relationship between investment weights and yield
• Creation and analysis of the portfolio with the smallest variance
• Discussion of the smallest variance limit |
Review of the course. |
7) |
• Explanation of determining the level of interest
• Comparison of returns on different investment periods
• Explaining the concepts of risk and risk premium
• Time series analysis of historical returns
• Inferences and risk measurement to ensure that returns are not normally distributed
• Comparison of historical returns of various portfolios (stocks, long-term bonds, etc.).
• Distinction of real and nominal interest rates
• Relation between tax rates and real returns
• The relationship between annual compound interest and continuous compound interest
• Differences between return on investment, expected return, standard deviation, excess return and risk premium.
• Comparison and analysis of historical returns. |
Review of the course. |
8) |
Midterm
Post-exam responses (depending on time). |
None |
9) |
Explanation of single factor model
• Explaining the relationship between normal distribution and systemic risk
• Definition of single index model
• Estimation of alpha and beta coefficients
• Creation of a Single-Index Model correlation matrix
• Elements of the Markowitz Model
• Single-factor model equation
• Single-Index Model regression equation
• Discussion of Single-Index Model and risk-covariance relationship |
Review of the course. |
10) |
Single-Index Model and portfolio creation
• Index Portfolio and investment assets analysis
• Discussing pptimum risky portfolio within the framework of Single-Index Model
• Explanation of sector application in index models
• Alpha coefficient and securities analysis
• Creating an optimal risk portfolio
• edited beta coefficient
• Evaluation of index models |
Review of the course |
11) |
Explanation of Capital Asset Pricing Model (SVFM)
• Comparison of SVFM and Index-Model
• Discussing the applicability of SVMF
• Explanation of various SVMF models
• Explanation of the relationship between liquidity and SVMF model
• Marketable securities market
• SVMF: Actual and expected returns
• Index model: Actual and expected returns
• Empirical findings for SVMF |
Review of the course |
12) |
Explanation of multi-factor models
• Explain the Arbitrage Pricing Model (AFM)
• Explanation of the relationship between individual assets and AFM model
• Definition of multi-factor AFM
• Comparison of multi-factor SVMF and AFM
• Multi-factor models
• Equity allocation in multi-factor models
• Arbitrage and risk arbitrage
• Comparison of SVMF and APT
• Fama-French 3 factor model |
Dersin tekrarı. |
13) |
• Explanation of random walking
• Explaining the Effective Market Hypothesis (EPH)
• Expression of tests (weak and strong) for market activity
• Fund management and market efficiency
• Effective Market Hypothesis
• Empirical implications for EPH
• Active and passive portfolio management within the framework of EPH
• Debate analysts, discussion of EPH within the framework of fund managers |
Review of the course. |
14) |
Course Review |
None |
15) |
Evaluation of the students by final exam |
None |