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2017/2018  BA-BHAAI1066U  Principles of Investment Finance

English Title
Principles of Investment Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 120
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor - Thomas P Duffin, PhD. Bryn Mawr College, td.acc@cbs.dk
    Sven Bislev - Department of Management, Society and Communication (MSC)
In case of any academic questions related to the course, please contact the course instructor or the academic director, Sven Bislev at sb.msc@cbs.dk.
Main academic disciplines
  • Finance
Last updated on 25/04/2018

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Be able to explain and employ the investment terms and the various tools used by investment professionals
  • Understand the theories and practices of investment management
  • Understand the techniques used to provide valuations of stocks and their stregths and weaknesses
  • Be familiar with Fundamental analysis of stocks and its predictive power
  • Be able to differentiate passive versus active portfolio management and articulate arguments as to the advantages and disadvantages of each
  • Be conversant with various instruments of fixed income investing and their purpose
  • Be familiar with mutual funds, evaluation of them and their advantages and disadvantages
  • Be familiar with the Capital Asset Pricing Model (CAPM)
Course prerequisites
Basic Economics
Principles of Investment Finance:
Exam ECTS 7.5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4 hour written exams: 31 July - 3 August 2018

Retake exam: September - October 2018

3rd attempt (2nd retake) exam: November - December 2018

Exam schedule is available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams.
Aids Limited aids, see the list below:
The student is allowed to bring
  • Any calculator
  • Language dictionaries in paper format
The student will have access to
  • Advanced IT application package
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
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.
4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): home project assignment, max. 15 pages.
Course content and structure

The goal of this course is to introduce students to the fundamentals of finance and to the world of financial markets. We will discuss stocks and bonds and their valuation, fundamentals of investing, the principle of risk and return, portfolio construction, financial planning and budgeting. We will also explore the new world of Impact Finance which creatively combines the goals of financial returns with an emphasis on social impacts.

A feedback activity will be provided no later than class session 6. In order to provide students with an opportunity to be evaluated on their likely performance on the final exam, a sample exam will be posted on LEARN which will be formatted similar to the final exam. This practice test will be returned with feedback. This will provide students information as to whether they are on track for successful completion of the course. 


Preliminary assignment: Begin thinking about stock market investing. Read Chapter 1 of Essentials of Investments 10th Ed. by Bodie, Kane and Marcus, published by McGraw Hill. After reading the chapter, log on to finance.yahoo.com. Under the search tool: Quote Lookup, type in the symbol AAPL and enter. This will bring up the price per share of Apple Computer. Click on Profile to read about its business. Then go to Key Statistics. How many shares are outstanding? What is the total market value of the firm?What were its profits in the most recent fiscal year? Look up Holders. Who are the biggest shareholders? Go to Analysts. What was the average price target forecast? Do you think it looks like a good buy at present levels? Why or why not? Come to class the first session to talk about these issues.

Class 1: Overview of Finance and Financial Assets
Class 2: Financial Markets and Investment Banking Process
Class 3: Valuation Concepts of Stocks
Class 4:Risk and Rates of Return of Various Asset Classes
Class 5: Fundamental Analysis of Stocks
Class 6: Fixed Income and Bond Investing

Feedback activity: Practice exam posted on LEARN

Class 7: Asset Allocation and Risk Management
Class 8: Portfolio Management and Construction
Class 9: Mutual Funds and Investment Vehicles
Class 10: Financial Planning and Budgeting
Class 11: New Trends: Impact Finance


Teaching methods
A combination of lecture, group discussion and small group projects will be employed in each session. Discussion will involve engagement of theoretical concepts explored in the text with practical applications in the real world of investing.
Feedback during the teaching period
We will review in class the format for the exam including typical exam questions so that students will know what it expected of them in the exam.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.


Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams.


We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end February 2018 at the latest.

Expected literature

Mandatory readings:


Zvi Bodie, Alex Kane, Alan Marcus
Essentials of Investments
ISBN-13: 978-0077835422; ISBN-10: 0077835425
McGraw Hill; 10th Edition, 2016

Last updated on 25/04/2018