course-details-portlet

FIN3009 - Asset Pricing and Portfolio Management

About

Examination arrangement

Examination arrangement: School exam
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours C

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 To
FIN3005 5.0 AUTUMN 2023
More on the course

No

Facts

Version: 1
Credits:  7.5 SP
Study level: Second degree level

Coursework

Term no.: 1
Teaching semester:  AUTUMN 2024

Language of instruction: English

Location: Trondheim

Subject area(s)
  • Financial Economics
  • Economics
  • Social Sciences
Contact information
Course coordinator:

Department with academic responsibility
Department of Economics

Timetable

List view
Calendar view

Examination

Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Autumn ORD School exam 100/100 C 2024-11-26 15:00 INSPERA
Room Building Number of candidates
SL515 Sluppenvegen 14 1
SL311 brun sone Sluppenvegen 14 36
Spring ORD School exam 100/100 C 2025-05-28 15:00 INSPERA
Room Building Number of candidates
SL310 lilla sone Sluppenvegen 14 6
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
Examination

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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