Investments (EF5052)

Year 2023-24 Semester A, by Prof. Xueping Wu


Class Time:     Tuesday 9:00-11:50; Wednesday 9:00-11:50;

Venue: (AC2) Li-1-507


Office: AC3 9-218; Tel: 34427577; email:

Office hours: Monday & Tuesday 8:00-9:00; or 24/7 by email or appointments

Aims and Objectives: This course is aimed to cover portfolio investment theories and applications. After completion, students are expected to apply fundamental investment principles in capital markets. Most importantly, students will be able to think and act professionally regarding the risk-return tradeoff involved in investment strategies and portfolio management.

Course materials: Class handouts and the textbook: Bodie, Kane, Marcus, and Jain: Investments, Asia Global Edition, 2014 or higher edition, McGraw-Hill;
Online Learning Center:

Grade weights:  Coursework 50%; exam 50%

Course Outline

Topic 1: Risk and Return in A Historical Perspective (Ch. 5)--Home Reading

Topic 2: Risk, Risk Aversion, Capital Allocation (Ch. 6)

Topic 3: Optimal Risky Portfolios (Ch.7)

Topic 4: The Capital Asset Pricing Model--CAPM (Ch. 9)

Topic 5: Index Models (Ch. 8 and also part of Ch.10)

Topic 6: Equity Valuation Models (Ch. 18)

Topic 7: The Efficient Market Hypothesis--EMH (Ch. 11)

Topic 8: Behavioral Finance (Ch.12)

Topic 9: Bond Prices and Yields (Ch. 14)

Topic 10: Term Structure of Interest Rates (Ch. 15)

Topic 11: Managing Bond Portfolios (Ch.16)

Topic 12: Portfolio Performance Evaluation (Ch. 24)

Practitioners' Readings:

        Selected newspaper articles and handouts