ØABED3500 Investments Emneplan

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 class of financial products, including bonds 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

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

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 range of financial assets
• can reflect upon his/her own academic practice and adjust it under supervision

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 to carry out advanced assignments and projects
• is familiar with language and terminology of the academic field

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 teaching is coordinated with ØABED4600.

The following coursework requirements must have been approved 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 alone, or with another student

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 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

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.