Prerequisite(s): FINC 561. This course reviews the concept of risk and return and the capital asset market model (CAPM). Next, the general issue of the efficient market hypothesis is examined. This leads to the discussion of the term structure of interest rates and factors (including macroeconomic and industry) that influence financial markets and security selection. Managing bond portfolios and various equity valuation models are then studied. Rounding out the course is an introduction of the derivative markets (options and futures).