FIN 3523 Financial Investment Analysis
FIN 3523 Financial Investment Analysis
This course intends to provide a thorough understanding of the investment environment and process. The investment environment includes the types of marketable securities that exist, where and how they are bought and sold. The process is concerned with decision-making, how much to invest in each security and when to make these investments. The course also focuses on the valuation of the different securities.
Upon completion of the course, students shall comprehend key concepts and the analytics of financial investment analysis such as;
- expected returns and idiosyncratic risk parameter estimation;
- immunizing a portfolio of fixed-income securities (bonds) against fluctuating interest rates.
- digital tasks such as extracting market data from external data bases downloaded into Excel spreadsheets.
- comprehend and understand the concept of diversification;
- stand the importance of sustainability and ESG-investments in financial markets.
Upon completion of the course, students are required to master tasks such as;
- calculating estimates of expected return and risk from a series of past returns
- applying modern portfolio theory for finding optimal investment portfolios
- calculating yields to maturity on bonds
- calculating duration in order to estimate the interest rate sensitivity of a fixed-income security and a portfolio of securities
Upon completion of the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the field of financial investments.
- Bond Valuation and the Term Structure of Interest Rates
- Bond Portfolio Management
- Stock Valuation Models
- Financial Data Analysis
- Risk and Expected Return
- Modern Portfolio Theory
- Equilibrium in Capital Markets
- Risk Management and Performance Evaluation
The course will include a combination of lectures and tutorials (in-class) where solutions to exercises will be explained.
Specific Information regarding any aspect of performance assessment will be provided in class. It is the student's responsibility to obtain this information. Please note that while attendance is not compulsory, it is the student’s responsibility to obtain any information provided in class that is not included on the course homepage/itslearning or in the text book. Homepages and/or itslearning are not designed for the purpose of students who choose not to attend class.
Students are recommended to use computer-based tools, e.g. spreadsheets. Such tools, however, are not allowed at the examination.
Higher Education Entrance Qualification.
BØK 3423 Finance or equivalent.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 30 Grouping: Individual Support materials:
Duration: 2 Hour(s) Comment: Midterm examination Exam code: FIN 35232 Grading scale: ECTS Resit: Examination every semester |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: FIN 35233 Grading scale: ECTS Resit: Examination every semester |
All exams must be passed to get a grade in this course.
| Activity | Duration | Comment |
|---|---|---|
Teaching | 36 Hour(s) | |
Other in classroom | 6 Hour(s) | Tutorials where exercises will be explained |
Prepare for teaching | 83 Hour(s) | |
Submission(s) | 30 Hour(s) | Preparation of home assignments |
Examination | 45 Hour(s) | Exam incl. preparations |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.