The path-breaking advances in finance theory and practice over the past decades have profoundly changed the financial world. This is an advanced course in financial theory. The objective of the course is to increase the student’s knowledge and understanding of security analysis and portfolio management. The course is lecture based but includes class discussion. Lectures will cover both theory and examples. Homework assignments will focus on applying the material from lectures. Major topics covered include bond prices and yields, management of bond portfolios, macroeconomics and industry analysis, equity valuation, options markets and valuation, future markets and risk management, and performance evaluation and active portfolio management. REQUIRED Capstone Course for Financial Mathematics Majors; Major Subject Elective for Business and Finance Majors.