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2021/2022  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 100
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Carsten Sørensen - Department of Finance (FI)
For academic questions related to the course, please contact course responsible Carsten Sørensen (cs.fi@cbs.dk)
Main academic disciplines
  • Finance
Teaching methods
  • Blended learning
Last updated on 01/12/2021

Relevant links
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Explain and employ the terms and tools used by investment professionals
  • Differentiate between the various financial instruments available to investors
  • Demonstrate understanding of fundamental finance concepts such as Portfolio Theory, Capital Asset Pricing Model, Efficient Markets Hypothesis
  • Distinguish Behavioral Finance from Standard Finance and assess their respective usefulness and limitations in valuing stocks
  • Evaluate the performance of a portfolio using modern porfilio concepts and risk-adjusted return measures
  • Develop the ability to solve quantitative problems related to risk and return, security valuation, bond valuation, and portfolio optimization.
Course prerequisites
None
Examination
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-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Exam schedules available on www.cbs.dk/isup
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.
Retake exam: 4 hour written sit-in exam.
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content, structure and pedagogical approach

The goal of this course is to introduce the student to the world of investments.  Principles of Investment Finance will strive to help students develop an understanding of individual investment decision-making, by introducing topics and techniques used by both personal investors and money managers. The course focuses on both individual securities and portfolios, teaching students to consider the risk and return of different types of investments and how to use this knowledge to achieve financial goals. There will be a focus on stock and bond investing. The course will cover the mechanics of buying and selling securities, efficient market theory, portfolios, diversification, stock valuation, and international investing. 

 

 

Class 1. The Investment Environment

Class 2. Securities Markets and Transactions

Class 3. Investment Information and Securities Transactions

Class 4. Return and Risk

Class 5. Modern Portfolio Concepts

Class 6. Common Stocks

(Feedback Activity: Course review and Q&A 

Class 7. Analyzing Common Stocks

Class 8. Stock Valuation

Class 9. Market Efficiency and Behavioral Finance

Class 10. Fixed Income Securities 

Class 11. Bond Valuation

 
Description of the teaching methods
This course will be a blended learning course, three weeks in the traditional classroom and two weeks online. For online class sessions Instructors will apply direct/live teaching through a link (Zoom). Additional pre-recorded material will also be used.
Feedback during the teaching period
Comprehensive review of chapters, FAQs and frequently made mistakes. Including a session on how to best prepare for the final exam.
Student workload
Preliminary assignment 20 hours
Classroom attendance 38 hours
Preparation 121 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Ordinary 6 weeks course 

 

Preliminary Assignment:  A generic test/assignment will be developed concerning “Nordic Nine”. It will be uploaded on Canvas at the end of May. Students are expected to access this assignment before classes begin. The assignment will not be reviewed in classes.”

 

Course and exam timetable is/will be 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 in start March.”

 
Expected literature

Mandatory readings:

 

Fundamentals of Investing, Global Edition, 14 edition 

Authors: Gitman, Smart, Zutter & Joehnk

Publisher: Pearson 

ISBN-10 : 1292316977

ISBN-13 : 978-1292316970

 

 


 
Last updated on 01/12/2021