FIE400E Investments

Spring 2024

  • Topics

    This course introduces students to the main concepts and models in the area of asset pricing and their applications to investment problems. The course covers three blocks of topics:

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

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

    2. 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

    3. Discussion of

    • Pricing and valuation
    • Management and strategies
    • Institutional conditions

  • Learning outcome

    Upon course completion, the students will be able to:


    • Understand the principles of pricing and valuation of financial instruments such as stocks, derivatives and fixed income securities.
    • Explain 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 evaluation of portfolios.


    • Apply the theory and models on practical problems of relevance for investors through in-depth knowledge of the financial markets and rigorous analytical thinking.
    • Solve financial problems using Microsoft Excel.

    General competence

    • Address investment decisions in a systematic manner focusing on financial theory and empirical evidence.
    • Communicate the knowledge to investment professionals and carry out extensive independent work on investment analysis.
    • Provide insights to a wider audience about the differences among the basic types of securities and how they fit in the total portfolio picture.
    • Form an opinion about current issues and debates covered by media and finance journals.

  • Teaching

    Lectures 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 conducted digitally and with pen and paper. The students will have access to Excel.

  • Grading Scale

    A - F

  • Literature

    • Bodie, Z., A. Kane & A.J. Marcus: Investments. International Student Edition, 13th Edition, McGraw-Hill, 2024.

  • Permitted Support Material


    One bilingual dictionary (Category I) 

    All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material


ECTS Credits
Teaching language

Autumn and Spring. Offered spring 2024.

Course responsible

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