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.

Learning outcomes

The objective of the course is to provide the skills required to make financial decisions related to investments. Major financial theories and modern financial research are linked to practical matters in portfolio management.

After completing the course, students should be able to:

• Perform a statistical analysis of historical rates of return.
• Construct optimal risky portfolios using a spreadsheet program.
• Explain how risk premiums for individual stocks are determined using the Capital Asset Pricing Model (CAPM) and multifactor models.
• Understand the implications of the efficient market hypothesis, and describe the explanations of behavioral finance for market inefficiency and market anomalies.
• Understand how technical analysis can be used to exploit any market inefficiencies.
• Calculate bond prices between coupon dates.
• Immunize a portfolio from interest rate risk (duration matching).
• Evaluate portfolio performance and apply different performance measures.
• Assess the potential of international diversification.
• Understand different hedge fund strategies.
• Identify and incorporate environmental, social and governance (ESG) factors into investment decisions.

Content

The major topics include:

• Asset allocation and portfolio optimization
• The theory of asset pricing models
• Market efficiency
• Behavioral finance and technical analysis
• Bond pricing and bond portfolio management
• Portfolio performance evaluation
• International diversification
• Hedge fund strategies
• Sustainable, Responsible, Impact (SRI) investing

Instruction

The course consists of lectures and seminars. The lectures and seminars are not compulsory but participation is highly recommended for successful studies. Everyone is expected to be actively involved in seminar discussions. The course is taught in English.

Assessment

The student will get one single grade, equivalent to 7,5 credits.

The examination consists of an individual written examination and assignments. The grade for the entire course is based on an assessment of the different parts of the examination.

Grading criteria are presented in the study guide provided at the start of the course. The following grades will be used: pass with distinction (VG), pass (G), and fail (U). Examinations handed in late will not be assessed except under special circumstances. Any remaining supplemental work must be completed and handed in by the deadline specified in the study guide. Otherwise the entire course (all examinations included) must be remade on upcoming course sections, if a place is available.

Uppsala University does not accept cheating and plagiarism. Suspected incidents of cheating and plagiarism are reported to the Disciplinary Committee of the University, which may issue a formal warning to the student or suspend the student from studies for a certain period.

NOTE: Only completed courses can count toward a degree.

Other regulations

The course overlaps 2FE807, 8FE807 Integrated Funding, Accounting and Control.