ØABED4600 Investments Course description

Through this course, students acquire insight into theories, analysis methods, instruments and institutional details relating to the functioning of modern financial markets. The first half of the course is devoted to modern portfolio theory, including the capital asset pricing model, multifactor models and the arbitrage pricing model. In the second half we will look at different classes of financial products, including bonds, shares and derivatives.

Language of instruction is English.

None.

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• comprehensive knowledge of the theories that underly the modern portfolio theory
• an advanced understanding of the procedures and techniques used in the process asset pricing
• advanced knowledge of the principle of equilibrium in financial markets and the implications for portfolio management, the capital asset pricing model (CAPM), and portfolio performance valuation

Skills

The student is capable of

• using financial theory to form solutions to practical problems relevant to financial advisors and individual investors
• using relevant techniques to price a broad range of financial assets, including
• finding and referring to information and academic material in finance theory
• apply standard techniques in portfolio performance valuation

General competence

The student

• can analyze relevant academic and professional problems in the fields of asset pricing and portfolio theory
• can apply his/her knowledge and skills in new areas in order to carry out advanced assignments and projects
• masters language and terminology of the academic field
• can communicate about academic issues, analyses and conclusions in the field, both with specialists and the general public

In class, the course includes:

• Frontal lectures
• Seminars
• Time for students to work in groups on assigned problems

At home, the course requires that the student:

• Work alone or in small groups on graded problem sets
• Work alone or in small groups on non-graded assignments
• Self study

The following coursework requirements must have been approved in order for the student to take the exam:

• Coursework 1: 4 problem sets, each including 4 to 10 short questions, on which the student can work in a group of three to four members.

The objective of the problem sets is to give students an opportunity to apply the theories discussed in class.

All required coursework must be completed and approved by the given deadline in order for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by the given deadline.

The exam in the course is a supervised exam of 4 hours.

The following aids are permitted:

• Calculator (see regulations for the use of calculators in the programme description)
• One dictionary: Native language-English/English-native language or English-English

Grade scale A-F

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.

Students who have the subject ØABED3500 Investments in their bachelor's degree are not allowed to take this course.