Investment Management
Teaches: Mertens Oleksandr
In the course the achievements of the whole financial science is absorbed to valuate investment projects and control their realisation. The basic methodological approach to valuation is the net present value criterion, internal rate of return, and the option approach. The main difference from the standard methodologies of project valuation with the help of formal discounting and CAPM theory is the consideration of the project flexibility during its realisation period. On separate examples it is shown how improper valuation of flexibility influences the divergence in highly profitable projects. It especially concerns mining, pharmaceutical, building, and high-tech industries. Successful implementation of this methodology in connected with the advance of Japanese corporations in the high-tech industry in the end of 1990s. The contemporary methodologies of portfolio valuation of investment projects are a subject of high interest of Ukrainian financial-industrial groups, holdings, and financial institutions.
Course Schedule
Theme 1. Markets and Instruments.
Theme 2. Stock Analysis and Valuation.
Theme 3. Method of Discounting Cash-Flows in Investment Solutions and Business Valuation.
Theme 4. Capital’s Structure and Value of Business.
Theme 5. Real Options in The Investment Solutions.
Theme 6. Bond Markets.
Theme 7. Futures and Forwards Contracts. Options.
Theme 8. Methods and Styles of Investment Portfolio Management.
Theme 9. Introduction to Technical Analysis.
Theme 10. Direct Investing Funds and Risky Funds.
Literature
- Body E., Cain A., Markus J. Investment Principles. Saint-Petersburg, Viliams, 2002.
- Breily R., Maiers S. Corporate Finance Principles. 2nd (Translation from 7th international issue). Moscow: Olimp-biznes, 2008.
- Damodaran A. Investment Valuation. Instruments and Methods of Valuing of Assets of Any Type. 5th Moscow: Alpina biznes books, 2004.
- Fabotsy Frenk J. Investment Management. Moscow INFRA-M, 2000.
- Mertens A. Financial Markets. Donetsk: DNU, 2005.
- Sharp W., Alexander G. Beily B. Investments. Moscow INFRA-M, 1999.
- Ukrainian Legislation: Act of the Ukrainian Parliament “About securities and stock market”, Act of the Ukrainian Parliament “About Institutes of Common Investments”, Act of the Ukrainian Parliament “About Joint-Stock Companies”.
