EPN

ØABED4600 Investments Course description

Course name in Norwegian
Investments
Study programme
Masterstudium i økonomi og administrasjon
Weight
10.0 ECTS
Year of study
2021/2022
Curriculum
SPRING 2022
Schedule
Course history

Introduction

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.

Recommended preliminary courses

Applied Statistical Methods and Corporate Finance.

Required preliminary courses

None.

Learning outcomes

After completing the course, students will acquired the learning outcomes defined in knowledge, skills and general competence:

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

Content

  • 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

Teaching and learning methods

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

Course requirements

In order to be able to register for the exam, the student must have the following approved work requirements:

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. 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.

Assessment

Written school exam (4 hours). 

Permitted exam materials and equipment

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

Grading scale

Grading scale from A to F. 

Examiners

An internal and an external examiner will grade the exam.

A selection of at least 25% of the exam papers will be assessed by two examiners. The grades awarded to exam papers assessed by the external and internal examiner will be used to determine the level of all exam papers.