Finance: Theory, Application and Empirical Evidence of Financial Market and Investment Management

Course 9: Finance: Theory, Application and Empirical Evidence of Financial Market and Investment Management

I. Course Description

Global financial markets and investment are in a dynamic and complex environment. Driven by globalization and scientific and technological progress, the financial markets are constantly evolving, showing increasingly close international ties. Global macroeconomic factors, political events, and technological innovation have a profound impact on financial markets, making the investment environment more volatile and challenging. Investment management faces increasingly complex tasks. In this context, financial practitioners need to have deep expertise, to be able to understand the changes in the global financial system, and to flexibly use various strategies to adapt to the rapid changes in the market.

This course aims to give students a deep understanding of the field of financial markets and investment management with comprehensive theoretical knowledge and practical skills. Students will deeply study the basic concepts of the financial market and learn to effectively allocate capital and build a balanced risk portfolio. Through an in-depth understanding of the capital asset pricing model (CAPM) and the multi-factor asset pricing model, students will be able to conduct asset valuation and risk assessment. The course also focuses on the Market Efficiency hypothesis (EMH) and behavioral finance theory, enabling students to understand the psychological and behavioral science factors behind market behavior. By learning the application of ESG principles, options market and valuation skills, predictive modeling, factor modeling and empirical testing, students will comprehensively improve their ability in investment and financial decisions.

II. Professor Introduction

Michael Ashby – Professor, Cambridge University

Professor Michael Ashby is a professor of Economics at the Downing Business School, Cambridge University. He received his bachelors and masters degrees in Economics from Cambridge University in 2015 and 2016, followed by a PhD in economics from Cambridge University in 2020. Michael Ashby Professors research interests on the predictability of asset prices and how to use predictability to price assets, test asset pricing models, and build portfolios that optimize risk-return trade-offs. He actively participated in the review of Management Science and made significant contributions to the quality of academic research.

In addition to his achievements in academia, Professor Ashby has also played a significant role in both the public and private sectors. He has worked as a consultant in the Office of the Irish Chief State Attorney, using his expertise to provide support and advice on government policy and legal matters to help with complex economic and legal issues. In the financial industry, Professor Michael focused on investment strategy and market analysis as a researcher at the BlackRock Corporate Investment Research Institute. His research provides key insights into the companys investment decisions and helped BlackRocks solid performance in global financial markets.

III. Syllabus

1. Capital allocation and portfolio management 2
2. Capital asset pricing model 4. Multi-factor model of asset pricing
3. Effective market hypothesis 6
4. Behavior finance theory 8. empirical finance application in ESG
5. Option market and valuation 10. Forecast modeling in the financial sector