FIE400E Investments

• Topics

  Analysis in connection with the three main types of financial instruments:

  • Stocks
  • Interest rate instruments (bonds/certificates)
  • Derivatives (options, futures, and forwards)

  Further development of "standard portfolio theory":

  • Portfolio analysis
  • Capital Asset Pricing Model (CAPM) and new variants
  • The efficiency characteristics of financial markets
  • Investment analysis and portfolio management
  • New management principles

  Discussion of

  • Pricing and valuation
  • Management and strategies
  • Institutional conditions

• Learning outcome

  Knowledge

  • Students should understand the principles of pricing and valuation of financial instruments such as stocks, derivatives, and fixed income securities;
  • Students should know portfolio theory and its relation to the capital asset pricing model (CAPM) and variants of the model;
  • Students should understand the principles of asset allocation and strategies, as well as performance evaluation of portfolios.

  Skills

  • Students should be able to apply the theory and models on practical problems of relevance for investors through in-depth knowledge of the financial markets and rigorous analytical thinking;
  • Students should be able to solve financial problems using Microsoft Excel.

  General competence

  • Students should be able to address investment decisions in a systematic manner focusing on financial theory and empirical evidence;
  • Students should be able to communicate the knowledge to investment professionals and carries out extensive independent work on investment analysis;
  • Students should be able to provide insights to a wider audience about the differences among the basic types of securities and how they fit in the total portfolio picture;
  • Students should be able to form an opinion about current issues and debates covered by media and finance journals.

• Teaching

  Lectures, quizzes and problem sets.

  Due to the current virus situation, lectures will be taught in the normal classroom setup with limited capacity. To overcome this problem, lectures will also be live streamed and recorded.

  If this is not possible, lectures will be fully digital.

• Recommended prerequisites

  It is recommended that students have taken courses like BED3/BED030 Investment.

• Credit reduction due to overlap

  FIE400E course cannot be combined with FIE400N, which is the Norwegian version of the same course.

• Requirements for course approval

  Approved problem sets.

  You are encouraged to collaborate on the problem sets. Teams of 3 to 5 students should solve the problem sets and hand in a solution per team. If working in a group is not possible, then students will need to ask for an exception to submit problem sets individually.

   

  Course approval from FIE400N is valid for FIE400E.

• Assessment

  Final exam: a 4 hour individual home exam. The exam will be given in English and can be written in English or Norwegian. Students who wish to retake the exam in FIE400N can take the exam in FIE400E, which is the English version of the same course.

• Grading Scale

  A - F

• Literature

  Bodie, Zvi, Alex Kane & Alan J. Marcus,  Irwin / McGraw-Hill (2018), "Investments," Global Edition 11th

  Lecture Notes