A graph of utility function.  The graph indicates risk aversion points.

Graph of utility function. (Graph by Prof. Reto Gallati.)


MIT Course Number


As Taught In

Spring 2003



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Course Features

Course Highlights

This course teaches how to make sound investment decisions through in-depth knowledge of the financial markets, rigorous analytical thinking and precise mathematical derivation. Included is a comprehensive set of lecture notes for all 23 lectures to explain core concepts. Also, students gain hands-on experience with optimization, data analysis, and other quantitative techniques by completing the five group assignments.

Course Description

The focus of this course is on financial theory and empirical evidence for making investment decisions. Topics include: portfolio theory; equilibrium models of security prices (including the capital asset pricing model and the arbitrage pricing theory); the empirical behavior of security prices; market efficiency; performance evaluation; and behavioral finance.

Reto Gallati. 15.433 Investments, Spring 2003. (Massachusetts Institute of Technology: MIT OpenCourseWare), (Accessed). License: Creative Commons BY-NC-SA

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