Investments

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

Overview

ECTS Credits
7.5
Teaching language
English.
Semester
Spring, Autumn

Course responsible

Francisco Santos (Autumn) and Walter Pohl (Spring), Department of Finance.