The course aims to provide students with the quantitative tools and methodologies needed to understand how financial markets work. It examines the key determinants of pricing in fixed-income and equity investments and outlines the principles underlying asset valuation and portfolio construction. Excel is used extensively to solve asset-allocation exercises and to replicate quantitative procedures commonly used in practice. Bloomberg sessions illustrate how market data is analysed and offer students access to a comprehensive database to support empirical work and portfolio analysis. By the end of the course, students will be able to recognise and interpret the main factors that influence portfolio performance, integrating elements of fundamental analysis, market dynamics, and quantitative relationships among financial variables
Course Prerequisites
A good familiarity with the main topics of Linear Algebra, as introduced in the Mathematics (General) course, is expected. A solid understanding of the fundamental principles of Mathematical Finance and Statistics is also required. Knowledge of Excel and its main functions is additionally helpful
Teaching Methods
Lectures with the use of Excel and Bloomberg platforms; In-class exercises; Individual assignments; Group assignments.
Assessment Methods
Attending students The exam consists of a written test in Excel and an optional assignment involving the formulation and discussion of an investment report The investment report includes data collection and processing, empirical analysis, and a clear rationale supporting the investment decisions
Not attenging students Written test in Excel
Students enrolled in the Inclusive Learning Modalities programme (“Modalità didattiche inclusive) are requested to contact the Professor and the Degree Course Coordinator in order to assess specific needs and define targeted support actions
Texts
A. Beltratti, Investimenti finanziari. EGEA, Milano, 2022 (III edizione) A. Beltratti, Financial Markets and Investments. EGEA, Milano, 2025 (I edizione) M. Guidolin, M. Pedio, Essentials of applied portfolio management. EGEA, Milano, 2016
Contents
Decisions and risk: the distribution of returns; Value at Risk; rational behaviour and utility functions From the investor to the market: the trade-off between expected return and risk, the diversification, the efficient frontier and the optimal portfolio Pricing: the Capital Asset Pricing Model and the expected return of risky assets Pricing and valuation of equity securities Pricing of bonds in the secondary market and the term structure of interest rates Risk and management of fixed-income portfolios
Course Language
Italian
More information
Supplementary materials and further information are available on the KIRO platform.
