He bridges Harry Markowitz’s foundational portfolio theories with modern algorithmic trading and risk budgeting. He emphasizes diversification, asset allocation strategies, and performance evaluation metrics like the Sharpe and Information ratios. 4. Derivative Markets

This part covers the structure of financial systems, governance, and the roles of intermediaries, such as banks and investment companies. Part III: Tools for Coping with Risk

Financial economics heavily details the term structure of interest rates and the valuation of bonds with embedded options. Key metrics include , modified duration , and convexity , which measure a bond portfolio's sensitivity to shifts in the yield curve. Valuation under Uncertainty

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