Aviso: Se está a ler esta mensagem, provavelmente, o browser que utiliza não é compatível com os "standards" recomendados pela W3C. Sugerimos vivamente que actualize o seu browser para ter uma melhor experiência de utilização deste "website". Mais informações em webstandards.org.

Warning: If you are reading this message, probably, your browser is not compliant with the standards recommended by the W3C. We suggest that you upgrade your browser to enjoy a better user experience of this website. More informations on webstandards.org.

Sub Menu
ISCTE-IUL  >  Education  >  LG

Investments (2 º Sem 2016/2017)

Code: L0646
Acronym: L0646
Level: 1st Cycle
Basic: No
Teaching Language(s): Portuguese, English
Friendly languages:
Be English-friendly or any other language-friendly means that UC is taught in a language but can either of the following conditions:
1. There are support materials in English / other language;
2. There are exercises, tests and exams in English / other language;
3. There is a possibility to present written or oral work in English / other language.
1 6.0 0.0 h/sem 54.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 0.0 h/sem 1.0 h/sem 55.0 h/sem 95.0 h/sem 0.0 h/sem 150.0 h/sem
Since year 2016/2017
Pre-requisites None
Objectives The students, at the end of the present learning unit, must develop competences that allow them to understand the trading, valuation and risk management mechanisms for the bond market; to manage and characterize the interest rate risk exposure of a portfolio; to analyse the efficiency, and the performance of a portfolio allocation; to identify the main sources of value for a stock.
1. Money-Market and FOREX
2. Stock Market
3. Bond Market
4. Financial Derivatives
5. Initial Public Offers and Short Selling Operations
6. Characterization and functionalities of Exchanges markets
1. Bond Features
2. Term Structure of Interest Rates
3. Fair Value and Trading Rules
4. Rates of Return
5. Rating and Credit Risk
6. Interest rate risk: Duration and Convexity
1. Return and risk
2. Markowitz model
3. Tobin model
4. Capital Asset Pricing Model (CAPM)
5. Performance analysis and evaluation: Alpha, Treynor and Sharpe indices
1. Market main features
2. Stock valuation through the Discounted Dividend Model
3. Stock valuation through Market Multiples: PER and MBV
Evaluation Method Regular grading system:
- Two mid-term tests (45% each)
- Individual homework, attendance and active participation (10%)

Students that fail in the regular grading system have two additional moments to pass: first and second exams, each worth 100% of the final grade. The pass grade is 9.5 points with no less than 7.5 points in the second test. Students can try to improve their grade only in the second exam.
Teaching Method Each student should acquire analytical, information gathering, written and oral communication skills.

For this purpose, the following learning methodologies (LM) will be used:
1. Expositional, to the presentation of the theoretical issues
2. Participative, with analysis and resolution of exercises
3. Active, with the realization of individual and group works
4. Self-study, related with autonomous work by the student.
Basic Bibliographic - Bodie, Z., A. Marcus e A. Kane, 2010, Investments, McGraw-Hill/Irwin, 9ª edição;
- Elton, E. e M. Gruber, 2009, Modern Portfolio Theory and Investment Analysis, Wiley, 8ª edição;
- Sharpe, W., G. Alexander, J. Bailey, 2000, Fundamentals of Investments, Prentice Hall, 3ª edição.
- Benninga, S., 2014, Financial Modeling, MIT Press, 4th edition
Complementar Bibliographic - A. G. Mota et al., 2009, Investimentos Financeiros: Teoria e Casos, Ed. Sílabo;
- Mota, A.G. e Tomé J. C., 1991, Mercados de Títulos - Uma Abordagem Integrada, Texto Editora;
- Textos de Apoio teórico/práticos a facultar pela equipa docente durante o semestre;
- Jornais diários e/ou semanários com temáticas de economia, finanças e gestão (v.g. Jornal de Negócios; suplementos de economia de jornais diários, etc).