2013/2014
KAN-FSM_FS51 Financial Markets & Instruments
| English Title |
| Financial Markets &
Instruments |
|
|
| Language |
English |
| Exam ECTS |
7.5 ECTS |
| Type |
Mandatory |
| Level |
Full Degree Master |
| Duration |
One Semester |
| Course period |
Autumn |
| Time Table |
Please see course schedule at e-Campus |
| Study board |
Study Board for MSc in Economics and Business
Administration
|
| Course
coordinator |
- Claus Munk - Department of Finance (FI)
|
| Main academic
disciplines |
|
|
|
Last updated on
06-08-2013
|
| Learning objectives |
The objective of the course is to
develop a deeper understanding of the role and inner workings of
financial markets and financial instruments such as stocks, bonds,
and derivatives. We will place particular emphasis on helping you
develop a systematic way of thinking about and making investment
decisions.
The aim of the course is that students after having followed the
course are able to:
- Explain the concepts, theories, models, and methods for
portfolio selection, risk measurement and management, the
risk-return tradeoff, and the pricing of stocks, bonds, and
derivative securities as discussed during the course.
- Discuss the theoretical and empirical validity of the central
theories and models developed in the course.
- Apply the theories and models to realistic problems.
- Implement relevant models using Excel or similar computational
tools.
- Discuss the role of capital markets, the efficiency of capital
markets, and theories about investor behavior.
|
| Examination |
|
Financial
Markets & Instruments:
|
| Examination form |
Written sit-in exam |
| Individual or group exam |
Individual |
| Assignment type |
Written assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
Internal examiner and external examiner |
| Exam period |
December/January |
| Aids allowed to bring to the exam |
Limited aids, see the list below and the exam
plan/guidelines for further information:
|
| Make-up exam/re-exam |
Same examination form as the ordinary exam
If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead.
|
|
| Course content and
structure |
|
The topics we will explore include the following:
- the basics of risk and return
- the investment process and the importance of asset
allocation
- how markets operate
- portfolio theory and how to form optimal portfolios
- equilibrium models of security prices
- security price anomalies such as the size, book-to-market, and
momentum effects in stock returns
- the behavioral approach to finance and its role in
understanding price anomalies
- the role of fixed income securities in the portfolio
- the term structure of interest rates
- the use and valuation of derivatives
Course status
This constitutes a basic course in capital market theory and
instruments and forms the basis for second semester courses in risk
management and applied corporate finance.
|
| Teaching methods |
| Lectures with exercises. |
| Expected literature |
|
Bodie, Kane and Marcus: Investments and Portfolio Management.
McGraw Hill. 9th edition.
|
Last updated on
06-08-2013
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