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2021/2022  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
  • Blended learning
Last updated on 21/12/2021

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
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 1
Compulsory home assignments
The student must get 1 out of 2 assignments approved in order to attend the ordinary exam. Students work individually on the assignments and submit answers in the form of an online multiple choice test.

Students will not have extra opportunities to get the required number of compulsory activities approved prior to the ordinary exam. If a student has not received approval of the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam.
If a student prior to the retake is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.

The extra assignment is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake.
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
No maximum number of pages, students have 4 hours to complete the assignment.
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Autumn
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, structure and pedagogical approach

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, videos, exercises, assignments
Feedback during the teaching period
Online and in-class quizzes are offered throughout the course with the purpose of giving the students a quick indication of their understanding of each topic.

The mandatory assignment quiz provides a quantitative feedback on each student's understanding.

Solutions to the exercises discussed in the exercise session are available to students giving them a chance to check their ability to solve relevant problems.

Students are encouraged to take active part in both lectures and exercises by contributing with questions and comments. The teachers will do their best to provide useful immediate feedback.

Students can meet the teacher for a one-to-one discussion during the weekly office hours.
Student workload
Lectures 36 hours
Preparation for lectures 72 hours
Exercise classes 14 hours
Preparation for exercise classes 56 hours
Exam 4 hours
Final preparation for exam 16 hours
Assignments 8 hours
Expected literature

Munk: Financial Markets and Investments, Lecture notes, 2021.
Supplementary articles or text book chapters.

Last updated on 21/12/2021