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


    • 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.


    • 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 and problem sets. Active student participation is strongly encouraged.

  • 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 up to 5 elements should solve the problem sets and hand-in a solution per team.

  • Assessment

    Final exam, comprising a 4 hour written school exam. The exam will be given in English and can be written in English or Norwegian.

  • Grading Scale

    Grading scale A - F.

  • Computer tools

    Knowledge of Excel.

  • Semester

    Spring and Autumn. Offered Autumn 2018

  • Literature

    Bodie, Zvi, Alex Kane & Alan J. Marcus, Investments and Portfolio Management, Irwin/McGraw-Hill, Global Edition

    Lecture Notes


ECTS Credits
Teaching language
Spring, Autumn

Course responsible

Associate Professor Francisco Santos (Autumn) and Assistant Professor Nataliya Gerasimova (Spring), Department of Finance, NHH