Our Courses
Environmental Measurement and Evaluation VI
Prof. Akira Maeda
Course Title
Investment Theory and Economic Valuation
Course Objectives/Overview
Most energy and environmental
policy and management decisions entail large-scale projects. Examples include construction
of electricity generation plants, introduction and/or promotion of renewable
energy sources, research and development of new technologies, etc. These
projects constitute initial capital investments and subsequent economic
benefits. Thus, valuing these benefits vis-à-vis the initially invested capital
is one of most important phases in the course of policy formulation.
In this lecture, the students will learn the theory of investment. The theory
includes fundamental principles of investment as well as methodologies for
economic valuation of investment activities. It is constructed on the basis of
microeconomics, finance, operations research, and other social science
disciplines. Thus, the lecture also works as a review of these subjects.
Schedule
1. Introduction
2. Cash flows
3. Present value and interest
4. Fixed-income securities
5. Immunization
6. Random returns
7. Portfolio optimization
8. The capital asset pricing model
9. Expected utility theory
10. Risk-neutral pricing
11. Option theory
12. Derivative pricing
13. Optimal portfolio growth