Investments

Introduction

The analysis of investments pervades virtually every financial decision made, e.g., by private investors, professional fund managers, and corporations. What is the price of securities such as stocks and bonds? How can you combine them to construct a satisfactory investment portfolio? How do you evaluate the performance of a trading strategy?

This course provides students with the cornerstones of modern investment analysis, e.g., Markowitz’s methodology to construct mean-variance optimal portfolios, the capital asset pricing model (CAPM), multifactor models, the efficient market hypothesis, and standard performance-evaluation measures.

Course content

Portfolio Theory

• Risk, Return, and the Historical Record
• Efficient Diversification
• Socially Responsible Investing
• Capital Asset Pricing Model, Arbitrage Pricing Theory, and Multifactor Models
• The Efficient Market Hypothesis and its empirical evidence

Evaluating Investment Performance and Security Analysis

• Evaluating Investment Performance
• Equity Valuation

Debt Securities

• Bond Valuation, Yields, and the Term Structure of Interest Rates
• Managing Bond Portfolios

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.