Investments and Decisions under Uncertainty

The course describes classical theory and methods of estimation of profitability of a project. In addition, students are thaught to formulate and solve investment models with the help of commercial software.The course also provides a thorough introduction to analysis of risk and decisions under uncertainty; expected utility, stochastic dominace and decision treees. Also social choice theory are introduced; Arrows impossibility theorem and common voting rules and procedures are presented.

The objective is to develop knowledge and capability necessary for preforming of investments analysis and decision making. Particular importance is given to understanding of approaches and tools for dealing with uncertainty in the decision process.

Lectures, exercises and cases. If there is a re-sit examination, the examination form may change from written to oral.