Course description

Investment Analysis


This course’s objective is to provide a deeper understanding of the financial markets, the securities that are traded on these markets and choices and issues of concern to all investors.  We focus on three elements. (a) The investment environment: the different securities traded in the markets, where they are traded and how they are traded. (b) Security valuation: what drives the value of the different securities and  how to account for these. (c) Investment process: how should investors select and construct their investment portfolio.

Course content

  • Bond Valuation
  • The Term Structure of Interest Rates
  • Stock Valuation models
  • Risk and Expected Return
  • Modern Portfolio Theory
  • Equilibrium in Capital Markets
  • Market Efficiency
  • Performance rvaluation
  • Introduction to derivatives: options and futures (if time permits)

Learning outcome knowledge

Upon completion of the course, students shall comprehend key concepts investment and portfolio management, including

  • Expected returns and idiosyncratic as well as portfolio risks;
  • The concept of diversification;
  • Determinant of bond value and risk.
  • The concepts of duration and convexity as well as interest risk management
  • Determinants of option values and option strategies.


Exam organisation

  • Written assignment: 15%
  • Written assignment: 15%
  • Written exam: 70%