Syllabus for Investments, Master Course

Finansiella investeringar, masterkurs

A revised version of the syllabus is available.

  • 7.5 credits
  • Course code: 2FE855
  • Education cycle: Second cycle
  • Main field(s) of study and in-depth level: Business Studies A1N
  • Grading system: Fail (U), Pass (G), Pass with distinction (VG)
  • Established: 2014-04-16
  • Established by: The Department Board
  • Applies from: week 36, 2014
  • Entry requirements: A Bachelor's degree equivalent to a Swedish degree of at least 180 credits (i.e. three years of full-time studies) with at least 90 credits in Business Studies including a bachelor's thesis of at least 10 credits. Proficiency in English. This is normally attested by means of an internationally recognised test such as TOEFL or IELTS.
  • Responsible department: Department of Business Studies

Decisions and guidelines

Master programme course- track FIM.

Learning outcomes

This course aims at developing key concepts in investment theory from the perspective of a portfolio manager rather than an individual investor. The goal of this course is to provide you with a structure for thinking about investment theory and show you how to address investment problems in a systematic manner. We will examine current academic work and its application for portfolio choice. The main objective of this module is to teach you these three elements:

Analytical Tools
Among others, an important analytical skill you should acquire is the ability to transform a real-life investment problem into an analytically tractable model.

Quantitative Skills
To be able to apply financial mathematical models is invariable an important aspect of a module in investments. Through the project assignments you will have hands-on experiences with quantitative method.

Empirical Knowledge
Essential to any investment decision is the knowledge of the investment environment. Broadly speaking, the financial instruments can be categorised into equity, debt, and derivatives. Important empirical evidence from all three types of financial markets will be examined in this course.

Content

The focus of this course is on the financial theory and empirical evidence that are useful for investment decisions. The topics covered in this course can be broadly categorised into five groups:

Financial Theories
This includes portfolio theory, the capital asset pricing model and the arbitrage pricing theory, all of which have become an integrated part of the decision-making in investments.

Empirical Evidence in the Equity Market
This includes patterns in cross-sections of stock returns, the time-series behaviour of stock returns time-varying expected returns and stochastic volatility.

Introduction to Fixed-Income and Credit Sensitive Instruments
This includes default-free as well as defaultable bonds, yield curve analysis, models of default and ratings transitions, and more recent development of credit derivatives.

Market Efficiency and "Active" Investments
We start with the efficient market hypothesis, which is a useful framework for modelling financial markets. Like any model, the efficient market hypothesis is not a perfect description of reality: some prices are almost certainly "wrong". Hence there are reasons to believe that active management can have effective results. Topics in active investments include security analysis, active portfolio management, hedge funds, and risk management issues.

Instruction

The language of instruction is English. The course is taught using lectures, seminars, and project assignments.

Assessment

Grades will be given in accordance with the Swedish grading system. The following grades will be used: VG (pass with distinction), G (pass), and U (fail).

The students will get one single grade, equivalent to 7.5 credits. Grading criteria will be presented in the study guide provided at the start of the course.

In addition, any remaining assignments or supplements must be completed and handed in at least within two weeks after the end of the course otherwise the course (all assignments included) has to be redone the following semester, provided there is space in the course.

Uppsala University takes cheating and plagiarism seriously, and disciplinary action will be taken against any student suspected of being involved in any sort of cheating and/or plagiarism. The disciplinary action takes the form of warnings or limited suspensions.

NOTE: Only completed courses can count toward a degree.

Transitional provisions

The course substitutes/overlaps among other courses Integrated Funding, Accounting and Control, 2FE807, 8FE807

Reading list

The reading list is missing. For further information, please contact the responsible department.

Last modified: 2022-04-26