EXC 3612 Investment Analysis
EXC 3612 Investment Analysis
This course intends to provide an understanding of the investment environment and process. The investment environment includes the kinds of marketable securities that exist and 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 as well as portfolio risks;
- The concept of diversification;
- To demonstrate risk-management skills by taking positions in financial options' contracts in order to hedge an underlying asset portfolio
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 required rates of return and risk based on various asset pricing models
- Calculating yields to maturity on bonds
- 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
- The Term Structure of Interest Rates
- Stock Valuation models
- Risk and Expected Return
- Modern Portfolio Theory
- Equilibrium in Capital Markets
- Market Efficiency
- Performance rvaluation
- Introduction to derivatives (if time permits)
The course will include a combination of lectures and tutorials 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 whilst 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.
Evaluation
This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 0-100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course.
Specific information regarding student evaluation beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one for several elements of the overall evaluation.
At re-sit all exam components must, as a main rule, be retaken during next scheduled course.
At re-sit requires that the entire evaluation process is conducted again, and that students who do not achieve points in one or more exam components will get a lower grade or fail the course. Previously conducted examination components will not be part of the assessment for a new grade.
EXC 2910 Mathematics, EXC 2904 Statistics, EXC 2110 Basic Financial Management, or equivalent.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 15 Grouping: Group/Individual (1 - 4) Duration: 2 Week(s) Exam code: EXC 36121 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Weight: 15 Grouping: Group/Individual (1 - 4) Duration: 2 Week(s) Exam code: EXC 36121 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: EXC 36121 Grading scale: Point scale leading to ECTS letter grade Resit: All components must, as a main rule, be retaken during next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 36 Hour(s) | |
Feedback activities and counselling | 6 Hour(s) | |
Prepare for teaching | 83 Hour(s) | |
Submission(s) | 30 Hour(s) | |
Student's own work with learning resources | 45 Hour(s) |
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.