FIE400E Investments

• Topics

  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

  Learning outcome

  The course gives a broad survey of financial market theory, principles, concepts, analytical methods, financial instruments and financial institutions. It aims at providing insights into the principles of financial markets, as well as providing foundations for the formulation and implementation of meaningful, quantitative analyses of various issues and topics in financial economics and related areas.

  After the course, the students should

  • understand the principles of pricing and valuation of financial instruments such as stocks, derivatives, and fixed income securities,
  • understand portfolio theory and its relation to the capital asset pricing model (CAPM) and variants of the model,
  • understand the principles of asset allocation and strategies, as well as performance evaluations of portfolios,
  • be able to apply the theory and models on practical problems of relevance for investors,
  • be able to communicate the knowledge and carry out extensive independent work on course topics.

• Teaching

  Teaching

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

• Required prerequisites

  Required prerequisites

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

• Credit reduction due to overlap

  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

  Requirements for course approval

  Approved problem sets. You are encouraged to collaborate on the problem sets, but not required to do so. Each team should have 1 to 4 members, and you hand in one solution per team.

• Assessment

  Assessment

  Final exam, comprising a 4 hour written exam. Grading scale A - F. The exam will be given in English and can be written in English or Norwegian.

• Grading Scale

  Grading Scale

  Grading scale A - F.

• Computer tools

  Computer tools

  Knowledge of Excel.

• Semester

  Semester

  Spring and Autumn

• Literature

  Literature

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

  Lecture Notes