Prerequisite(s): ECON 324 for Economics majors with Asset Management concentration; FINC 221 or FINC 300 for all other majors or minors. Restriction(s): Major or minor within School of Business. This course starts with the concepts of risk and return. The general problem of valuing risky securities is considered, and this leads to the classical theoretical problems of portfolio diversification, the efficient frontier and two-fund separation. The capital asset pricing model (CAPM) and efficient markets theory are explained. The fundamentals of bond valuation and bond analysis (such as duration and convexity) are presented. Rounding out the course is an introduction to derivative instruments.