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2018/2019  KAN-CFIVO1003U  Investments

English Title

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)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 20-06-2018

Relevant links

Learning objectives
The course aims at providing students with the institutional information, the models, and the computational methods relevant for a systematic approach to investment decisions.
  • 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
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 Autumn
Aids Open book: all written and electronic aids, including internet access
Read more here about which exam aids the students are allowed to bring and will be given access to : Exam aids and IT application package
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 course develops a deep understanding of financial markets and how investors use the securities traded in financial markets. The course covers the following topics:

  • Measuring risk and returns
  • Fixed income securities, bond pricing, the term structure of interest rates, and interest rate risk management
  • Basic stock pricing models
  • 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
  • Stylized empirical facts about returns on financial assets
  • Pricing anomalies, market efficiency, and behavioural finance
  • Excel is used throughout the course wherever relevant
Description of the teaching methods
Lectures with exercises.
Feedback during the teaching period
Quizzes are offered throughout the course with the purpose of giving the students a quick indication of their understanding of each topic.

Solutions to most exercises discussed in the exercise session (and many other exercises) are available to students giving them a chance to check their ability to solve relevant problems.

Students are given the opportunity to hand in an exam-like assignment and obtain feedback from the teacher or a teaching assistant in the form of a tentative grade and various specific comments.
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, 2018.
Supplementary articles or text book chapters.

Last updated on 20-06-2018