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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

    Upon completion of the course the candidate

    Knowledge

    • understands the principles of pricing and valuation of financial instruments such as

    stocks, derivatives, and fixed income securities;

    • knows portfolio theory and its relation to the capital asset pricing model (CAPM)

    and variants of the model;

    • understands the principles of asset allocation and strategies, as well as performance

    evaluation of portfolios.

    Skills

    • is able to apply the theory and models on practical problems of relevance for investors through┬áin-depth knowledge of the financial markets and rigorous analytical thinking;
    • demonstrates skills in solving financial problems using Microsoft Excel.

    General competence

    • is able to address investment decisions in a systematic manner focusing on financial theory and empirical evidence;
    • communicates the knowledge to investment professionals and carries out extensive independent work on investment analysis;
    • provides insights to a wider audience about the differences among the basic types of securities and how they fit in the total portfolio picture;
    • is able to form an opinion about current issues and debates covered by media and finance journals.

  • Teaching

    Teaching

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

  • Recommended prerequisites

    Recommended 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 school exam. 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 Nataliya Gerasimova (Spring), Department of Finance.