Topics in Financial Markets

• Investment decisions
• Capital allocation
• Efficient Diversification
• Optimal portfolio choice under uncertainty
• Capital Asset Pricing Model (CAPM)
• Arbitrage Pricing Theory (APT)
• Behavioral Finance and Technical Analysis
• Efficient Market Hypothesis
• Socially Responsible Investment and Green Finance

Knowledge

By the end of this course, the student shall:

• Know the core of modern portfolio theory and equilibrium in capital markets
• Know the core of basic models for capital markets and pricing of financial instruments under uncertainty
• Understand the efficient market hypothesis and its implications
• Know of key themes, opportunities, and challenges associated with leveraging finance to contribute to sustainable global development

Skills

By the end of this course, the student shall:

• Be capable of using basic models for analyzing portfolio choices and pricing of financial instruments
• Be able to analyze economic relationships where explicit assumptions about market uncertainty are central
• Be able to make judgements on the influence of risk and uncertainty on financial decisions

General competence

By the end of this course, the student shall be able to communicate with both specialists and the general public about:

• The implications of modern portfolio theory
• The implications of the efficient market hypothesis
• Fundamental ideas on how finance can contribute to sustainable global development

Lectures, problem solving, assignments