EXC 3612 Investment Analysis

EXC 3612 Investment Analysis

Course code: 
EXC 3612
Course coordinator: 
Chunyu Yang
Course name in Norwegian: 
Investment Analysis
Product category: 
BBA - Specialisation in Finance
2024 Autumn
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

This course’s objective is to provide a deeper understanding of the financial markets, the securities that are traded on these markets and choices and issues of concern to all investors.  We focus on three elements. (a) The investment environment: the different securities traded in the markets, where they are traded and how they are traded. (b) Security valuation: what drives the value of the different securities and how to account for these. (c) Investment process: how should investors select and construct their investment portfolio.

Learning outcomes - Knowledge

Upon completion of the course, students shall comprehend key concepts investment and portfolio management, including

  • Expected returns and idiosyncratic as well as portfolio risks
  • The concept of diversification
  • Determinant of bond value and risk
  • The concepts of duration and convexity as well as interest risk management
  • Determinants of option values and option strategies (if time permits)
Learning outcomes - Skills

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, duration and convexity on bonds
  • Construct option strategies to hedge equity risk
  • Implement portfolio optimization and bond valuation in Excel or R
  • Value options with the binomial valuation model (if time permits)
General Competence
  • 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.
Course content
  • 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 evaluation
  • Introduction to derivatives: options and futures (if time permits)
Teaching and learning activities

The course will include a combination of lectures, tutorials where solutions to exercises will be explained, and online assignments.

Specific Information regarding any aspect of performance assessment will be provided in class. 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 textbook. Homepages and/or itslearning are not designed for the purpose of students who choose not to attend class.

To add practical values to the course, digital tools such as Excel or R are used in many examples. Such digital tools, however, are not allowed at the examination.

Software tools
Software defined under the section "Teaching and learning activities".
Additional information



Higher Education Entrance Qualification


Deviations in teaching and exams may occur if external conditions or unforeseen events call for this

Required prerequisite knowledge

EXC 2910 Mathematics, EXC 2904 Statistics, EXC 2110 Basic Financial Management, or equivalent.

Exam category: 
School Exam
Form of assessment: 
Structured Test
Exam/hand-in semester: 
First Semester
Support materials: 
  • BI-approved exam calculator
  • Bilingual dictionary
3 Hour(s)
Exam code: 
Grading scale: 
Examination every semester
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
39 Hour(s)
Feedback activities and counselling
3 Hour(s)
Review of assignments in plenary
Prepare for teaching
48 Hour(s)
Group work / Assignments
30 Hour(s)
Student's own work with learning resources
80 Hour(s)
Sum workload: 

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.