course-details-portlet

FIN3009

Asset Pricing and Portfolio Management

Choose study year
Credits 7.5
Level Second degree level
Course start Autumn 2024
Duration 1 semester
Language of instruction English
Location Trondheim
Examination arrangement School exam

About

About the course

Course content

This course deals with portfolio theory and the pricing of financial assets. The students learn how to construct portfolios that are mean-variance efficient and how to evaluate portfolio strategies and performance. Modelling of uncertainty is central for valuing financial assets and will be covered in detail. This modelling will be used to value assets both by numerical methods and the martingale approach. The course also introduces the students to pricing using the stochastic discount factor. Known asset-pricing puzzles relating to the equity premium and the risk-free rate will be discussed. Finally, the effect frictions in financial markets have on asset prices will be analyzed.

Learning outcome

Knowledge

You learn

  • how frictions affect prices in financial markets
  • to construct (optimal) portfolios of risky- and risk-free assets
  • how to estimate financial prices by using analytical- and numerical methods
  • about empirical puzzles, i.e., empirical facts which are not easily reconciled with theoretical models
  • how expected returns, risk, and covariance affect sustainable portfolio choice

Skills

You will know

  • how to construct sustainable portfolios
  • which pricing methods to choose when pricing financial assets, and being able to use them
  • how to analyze how investor characteristics affect financial prices and interest rates
  • how to address financial puzzles

General skills

You will know

  • how to apply analytical tools to analyze well-known and new financial problems
  • why risk is important for the functioning of financial markets and for construction of sustainable portfolios

Learning methods and activities

2 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term.

Compulsory assignments

  • Compulsory activity

Further on evaluation

Compulsory activity must be completed in the semester the course is taught. The approval also applies to later semesters.

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

Credit reductions

Course code Reduction From
FIN3005 5 sp Autumn 2023
This course has academic overlap with the course in the table above. If you take overlapping courses, you will receive a credit reduction in the course where you have the lowest grade. If the grades are the same, the reduction will be applied to the course completed most recently.

Subject areas

  • Financial Economics
  • Economics
  • Social Sciences

Contact information

Course coordinator

Department with academic responsibility

Department of Economics