Mathematical Portfolio Theory

Module code: MA3072

This module will provide a comprehensive introduction to mathematical portfolio theory. Portfolio theory is used in the financial industry to maximise returns for a given level of risk, and in this module we will explore models of portfolio theory, including single and multi-factor models. We will take an in-depth critical look at theories of economic decision making, and their applications and limitations. Theories covered in this module include:
Rational choice theory

Rational expectation theory
Portfolio theory
Utility theory
Prospect theory