Investments

FIE400E Investments

Vår 2023

Høst 2023
  • Topics

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

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

    Skills

    • Students will 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 will be able to solve financial problems using Microsoft Excel.

    General competence

    • Students will be able to address investment decisions in a systematic manner focusing on financial theory and empirical evidence;
    • Students will be able to communicate the knowledge to investment professionals and carry out extensive independent work on investment analysis;
    • Students will 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 will be able to form an opinion about current issues and debates covered by media and finance journals.

  • Teaching

    Lectures, quizzes and problem sets.

  • Recommended prerequisites

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

  • Credit reduction due to overlap

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

  • Compulsory Activity

    Approved problem sets, groups of up to 5 students.

    Compulsory activities (work requirements) from FIE400N is valid for FIE400E.

  • Assessment

    4 hour school exam.

    The exam must be answered in English.

  • Grading Scale

    A - F

  • Literature

    • Bodie, Z., A. Kane & A.J. Marcus: Investments. International Student Edition, 12th Edition, McGraw-Hill, 2021.

Oppsummering

Studiepoeng
7.5
Undervisningsspråk
English.
Semester

Spring and Autumn. Offered Spring 2023.

Course responsible

Autumn: Associate Professor Francisco Santos, Department of Finance, NHH.

Spring: Assistant Professor Elizaveta Sizova, Department of Finance, NHH.