Investment and Portfolio Management (5 cr)

Objective

Upon completion of the course students will be familiar with investment theories. The student will understand how stock markets work. The student will be able to collect and interpret market information and calculate the expected returns and risks of different investment products. The student will be able to build an investment portfolio, manage it and report on its progress.

Content

- Stock markets
- Investment theory
- Portfolio theory
- Profit and risk

Materials

Bodie, Kane & Marcus: Investments, McGraw-Hill, 11th edition 2018, chapters 2-4, 5-7, 11 and 18.
Berk & DeMarzo: Corporate Finance, Pearson, 4th edition 2017, chapters 9-11 and 13.
Lecture handouts (in OMA)
Exercises

Teaching methods

Lectures, exercises in class, portfolio exercise in group (teamwork, reporting, presenting), homework in Moodle, literature, final exam.

Exam schedules

Final exam April 14, at 8.30 (A238.1) 2 hours.
Two resit exams

Student workload

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

Further information

Please be aware that the course includes a substantial amount of mathematical excercises.
Prerequisite: Finance, Corporate Finance
Students are expected to have knowledge about the time value of mone (PV and FV) and equity and debt financing, i.e. material covered in the first 1-2 basic courses in Finance.
Mandatory attendance on the two first lectures and on presentations in class.

Evaluation scale

0-5

Assessment criteria, satisfactory (1)

The student has achieved the course objectives fairly. The student will be able to identify, define and use the course subject area’s concepts and models. The student understands the criteria and principles of the expertise development.

Assessment criteria, good (3)

The student has achieved the course objectives well, even though the knowledge and skills need improvement on some areas. The student is able to define the course concepts and models and are able to justify the analysis. The student is able to apply his/her knowledge in leisure, study and work situations. The student understands the importance of expertise in the field of business and is able to analyze his/her own expertise.

Assessment criteria, excellent (5)

The student has achieved the objectives of the course with excellent marks. The student masters commendably the course subject area’s concepts and models. The student is able to make justified and fluent analysis and to present concrete development measures. The student is well prepared to apply his/her knowledge in leisure, study and work situations. The student is able to analyze the business sector expertise and the development of his/her own expertise.

Assessment criteria, approved/failed

The student has achieved the course objectives fairly. The student will be able to identify, define and use the course subject area’s concepts and models. The student understands the criteria and principles of the expertise development.

Assessment methods and criteria

The grading (100%) can be broken down as follows:
Exam 60%, Homework in Moodle 20%, Portfolio exercise 20%.
The exam consists of 50% theory questions and 50% calculations.
The Portfolio exercise consists of two assignments 10% and two presentations in class 10%.

Qualifications

Finance and Corporate Finance or equivalent competences

Objective

Upon completion of the course students will be familiar with investment theories. The student will understand how stock markets work. The student will be able to collect and interpret market information and calculate the expected returns and risks of different investment products. The student will be able to build an investment portfolio, manage it and report on its progress.

Content

- Stock markets
- Investment theory
- Portfolio theory
- Profit and risk

Qualifications

Finance and Corporate Finance or equivalent competences