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2015/2016  KAN-CFIVO1003U  Investments

English Title
Investments

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Claus Munk - Department of Finance (FI)
Contact information: https:/​/​e-campus.dk/​studium/​kontakt
Main academic disciplines
  • Finance
Last updated on 05-08-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The course aims at providing students with the institutional information, the models, and the computational methods relevant for a systematic approach to investment decisions. Upon completion of the course the student should be 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 and bonds 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
Investments:
Exam ECTS 7,5
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) One internal examiner
Exam period Autumn
Aids allowed to bring to the exam Limited aids, see the list below:
  • Written sit-in-exam on CBS' computers
  • Books and compendia brought by the examinee
  • Allowed dictionaries
  • Allowed calculators
  • Notes in paper format brought by the examinee
  • Access to personal drive (S-drive) on CBS' network
  • USB key to upload your notes before the exam
  • Access to all information on CBSLearn
  • Additional allowed aids, please see the list below
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.
Description of the exam procedure

In addition to the aids listed, the student is allowed to hand in graphs and mathematical equations written by hand on paper as a supplement to the answers written on the computer.
Course content and structure

The course develops a deep understanding of financial markets and how investors use the securities traded in financial markets. The course covers the following topics:

  • Risk and return
  • Fixed income securities, bond pricing, the term structure of interest rates, and interest rate risk management
  • Portfolio theory and, in particular, mean-variance analysis
  • Index/factor models and consequences for portfolio choice
  • Introduction to utility functions and risk aversion
  • Introduction to multi-period investment strategies
  • Equilibrium in capital markets and the Capital Asset Pricing Model in various forms
  • Introduction to the valuation of stocks
  • Pricing anomalies, market efficiency, and behavioural finance
  • Excel is used throughout the course wherever relevant
Teaching methods
Lectures with exercises.
Student workload
Lectures 33 hours
Preparation for lectures 66 hours
Exercise classes 14 hours
Preparation for exercise classes 70 hours
Exam 4 hours
Final preparation for exam 19 hours
Expected literature

Munk: Financial Markets and Investments, Lecture notes, 2015.
Supplementary articles or text book chapters.
Last updated on 05-08-2015