Revised by: Rector of Umeå School of Business and Economics, 2021-10-28
Contents
The overall purpose of the course is to provide a more in-depth knowledge about decision-making and portfolio management under uncertainty. Several aspects related risk management are treated, such as how to measure and quantify risk, how to make an optimal choice under uncertainty and modern portfolio theory. Another topic covered in the course is how to price financial assets. In this context, the course covers pricing theories such as CAPM, CCAPM and APT.
Expected learning outcomes
Having finished the course, the student is expected to:
know how to use formal models to analyze decision-making under uncertainty,
have an in-depth knowledge and understanding of modern portfolio theory,
have an in-depth knowledge of the most important theories for asset pricing and knowing how to apply them,
be able to present empirical results within the field in a structued manner.
Required Knowledge
90 credits of which at least 7.5 credits in mathematics containing calculus, such as One-dimensional calculus 1 or Mathematical Economics I D7. Proficiency in English equivalent to the Swedish upper secondary course English 6.
Form of instruction
The course is offered in the form of lectures and seminars.
Examination modes
The examination consists of written examination at the end of the course.
A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date.
The following grading system will be used: Fail (Underkänd), Pass (Godkänd) and Pass with Distinction (Väl godkänd).
It is normally not possible to do additional examinations to reach a higher grade. Exceptions can be made for a student with the grade Fail on any of the examinations if the examiner (not the lecturer) finds this appropriate. The task must be a minor undertaking, closely related to the learning outcome not reached, and performed in close proximity to the original examination.
When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the Dean of the Business School.
Credit transfer Academic credit transfers are according to the University credit transfer regulations.
Literature
Valid from:
2022 week 1
Intermediate financial theory Danthine Jean-Pierre, Donaldson John B. 3. ed. : Oxford : Academic Press : cop. 2015 : xvii, 553 s. : ISBN: 9780123865496 Search the University Library catalogue
