Handbook information

Contents

The purpose of the course is to explain fundamental pricing of risk in competitive financial markets and provide sound frameworks for professional wealth management. The course is mainly built upon rational portfolio theory but covers also common psychological biases in human decision making likely to be important in advising investing clients in private banking and wealth management.

Learning Objectives

Upon completion of the course, the student is expected to master portfolio risk and return measurement and to be able to construct optimal investment portfolios for investors. The student can assess performance of money managers. The student will be knowledgeable of common behavioural biases in investing and be able to avoid common pitfalls in potentially suboptimal decision making.

Language of Instruction

English

Pre-requisites

Knowledge corresponding to that of Pricing of Financial Securities and Derivatives recommended

Contact hours

44 h

Instruction

Literature

Bodie Z, Kane A & Marcus A J (2010): Investments and Portfolio Management, 9th ed., MacGraw-Hill/Irwin 2010, selected parts.

Evaluation and Examination

Written examination, term paper and assignments.

Instructor

Löflund, Anders