The notes introduce the reader to the concept of risk and returns of an investment. It covers different techniques of measuring the risks associated with investments.

Notes provide a basic understanding to the valuation of stocks. Starting from the zero coupon to the limitations of the discount model. it also covers other models used for valuation such as the total payout method and the discounted free cash flow model.

The lecture notes cover the basics to sock valuation including detailed derivation of zero growth model and Gordon growth model.

The notes take the reader through the basic terminology of used in the financial markets to more complex issues such as yield to maturity calculation. Other areas of concern such as the credit spread and interest rate risks are also covered.

The notes cover important aspect of the investment techniques. Both Net Present Value and Internal Rate of Return are explained in detail including the fallacies of IRR rule. Formula for payback rule and profitability index is also included.

The notes provide a basic understanding of the topic time value of money. Annuity and perpetuity are explained in detail with derivation. Clear differentiation is made between annual percentage rate and effective annual rate.