ØABED4600 Investments Course description

Through this course, students acquire insight into theories, analysis methods, instruments and institutional circumstances relating to modern financial markets. The students acquire important and fundamental knowledge of the valuation of financial instruments. The course focuses on interest rate instruments, shares and derivatives.

Applied Statistical Methods and Corporate Finance.

None.

Knowledge

The student has

• a good overview of the important institutional aspects of modern financial markets
• advanced knowledge of the principle of equilibrium in financial markets and the implications for portfolio management and the capital asset pricing model (CAPM)
• advanced knowledge of the principle of non-arbitrage in financial markets

Skills

The student is capable of

• using financial theory to formulate solutions to practical problems relevant to enterprises and investors
• using relevant techniques to price a broad range of financial assets
• communicating his/her knowledge orally and in writing

• Modern portfolio theory, including the capital asset pricing model, multifactor models and the arbitrage pricing model
• Share valuation using the dividend discount model and multiples such as the price/book ratio and price/earnings
• Analysis of interest rate instruments (bonds and certificates)
• Pricing and analysis of derivatives (futures contracts and options)
• Portfolio management and performance assessment

The course is taught in plenary lectures, and students work on and discuss different assignments in groups and plenary sessions.

Five individual assignments for submission. The assignments will be a combination of spreadsheets and reports. The expected workload is approx. 10-15 minutes per submission. All the assignments must be approved before a student can sit the exam in the course. If the assignments are not approved, the student will be given one opportunity to submit a new or improved version. The lecturer will provide more detailed information about deadlines for submission.

A supervised written four-hour exam is held at the end of the semester.

Students who become ill or fail an exam are entitled to register for a resit/rescheduled exam in the course in accordance with the Regulations relating to Studies and Examinations at OsloMet.

• Calculator (see separate regulations).
• One dictionary (either first language-English/English-first language or English/English).

A grade scale with grades from A to E for pass and F for fail is used. 

An external examiner will grade the exam papers together with the lecturer.