Objectives:
The main task of the course is to provide the students with intellectual and analytical framework that allows them to evaluate the “real world” of investments. We will focus mostly on the problems faced by investors in choosing among numerous available investment opportunities. We will go through strategic asset allocation, tactical asset allocation and market-neutral strategies. Both the theory and the empirical evidence are reviewed. Also, special topics, such as hedging, portfolio insurance, and behavioral biases are covered. The project is designed to give you “hands-on” knowledge of major concepts in investments. The course is essential for any business professional that wants to make his career as investment banker or as a corporate treasurer.
Constraints:
I am limiting the number of students to 50. If there is significant oversubscription, we will try to solve the problem to mutual satisfaction. However, it is not fair either to me or to students to pack the course to the extend where any interaction between students and teacher is impossible.
Timing:
I am planning for 14 sessions in January-March of 2004. During two last sessions you will present the ideas for your investment project. Then you are welcome to start simulated trading exercise. The results are going to be presentsed in May. Thus, the final grade is due in May as well.
All courses in the major in Finance assume that you have taken courses corresponding to 311 - Finansiell ekonomi (based on Brealey and Myers "Principles of Corporate Finance") and to 601 - Ekonomisk Statistik I and 602 - Ekonomisk Statistik II (basic statistical inference).
In addition, for 4106 - Advanced Investments it is assumed that you have prior knowledge corresponding to 4101- Investments and 8103 - Basic Econometrics.
Modest level of Excel proficiency is required as well. I assume that all of you have access to PC with Excel spreadsheet and statistical program installed.
I will post everything I can at my web site for the couse . I will also try to update corresponding pages on the course web. Reading pack will be distributed in the beginning of the couse. In addition, I will try to put most of those articles in PDF format on the web.
| Course nr: | 4106 |
| Course Type within Major in Finance: | B |
| Credits: | 5 |
| Year of study: | 3 |
| Term: | Spring |
| Teaching period: | January-May |
| Additional Prerequisites: | 4101 - Investments 8103 - Basic Econometrics |
| Attendance: | Lectures:
Non-compulsory Guest lectures: Compulsory Case discussions: Compulsory |
| Grading is based on: |
Assignments and cases:50% Investment project: 40% Class Participation: 10% Please look here for more details |
| Department | Department of Finance |