Investment and Portfolio Management (5 ECTS)

Learning outcomes

After completing the course students will have an understanding of investment fundamentals. Students will gain an intuitive understanding of the stock market as they manage their own fictive portfolios of stocks. Students will achieve a more comprehensive grasp of the investment environment and the application of portfolio theory.

Content

Investments and the Investment Process
Risk and Return
Instruments and Pricing
Portfolio Theory

Prerequisites

Finance
Corporate Financial Management

Teaching methods

Lectures, worked exercises, homework in Moodle, final exam.
Portfolio exercise (8 weeks) in groups of 3-4 students, presentations in class and written report of portfolio exercise.

Location and time

The lectures are held on the Myyrmäki campus.
Mandatory attendance on the two first lectures.

Learning materials and recommended literature

Berk & DeMarzo: Corporate Finace, Pearson (Chapters 6,9,10-11 and 13)
Bodie, Kane & Marcus: Investments, 11th Edition, McGraw-Hill 2018 (ISBN 978-1-260-08339-2)

Alternative completion methods of implementation

The portfolio exercise (in groups of 3-4 students) is mandatory.

Exam dates and retake possibilities

Final exam April 26,2021.

Student workload

5 credit course = 130 hours of student workload, which can be broken down as follows:
Contact classes and exams 45 hours
Self-directed learning 45 hours
Group work with portfolio 40 hours

Further information for students

Please be aware that the course contains many mathematical exercises.
Prerequisite:
Students are expected to have knowledge about the time value of mone and equity and debt financing, i.e. material covered in the first 1-2 basic courses in Finance.
This prerequisite knowledge is tested (Intro Exam) in the beginning of the course.
Mandatory attendance on the two first lectures.

Assessment methods and criteria

Portfolio exercise 20%
Moodle exercises homework 20%
Final exam 60%

Evaluation scale

0-5

Assessment criteria, satisfactory (1)

Sufficient performance:
showing just enough understanding of the subject to merit a pass grade but requiring greater effort to achieve a more satisfactory result

Assessment criteria, good (3)

Good performance:
showing strong understanding of basic concepts and good grasp of techniques, but with certain minor problems still requiring further attention

Assessment criteria, excellent (5)

Excellent performance:
not only fulfils all standard requirements but demonstrates originality and imagination

Assessment criteria, approved/failed

Sufficient performance:
showing just enough understanding of the subject to merit a pass grade but requiring greater effort to achieve a more satisfactory result