KTTA4130 Asset Pricing and Investments (5 cr)
The lecture course deepens students’ understanding of theories of asset pricing, investments and risk. The key points of the lecture course are the price of risk, the Capital Asset Pricing Model (CAPM), factor models, term structure of interest rates, portfolio diversification and optimization, predictability of markets, behavioral finance and risk adjusted measures of investment performance.
recognize, define, and report the key theories explaining asset pricing and functioning of financial markets (CAPM, factor models)
analyze the possibilities offered by different types of assets and investment strategies, to make investment propositions, and to make investment decisions
evaluate the investment performance of asset management services and investment managers
plan and construct basic investment solutions
Description of prerequisites
- Bodie Z., Kane A., & Marcus A.J. 2014. Investments. 10th Global Edition. McGraw-Hill Education.; ISBN: 139780077161149