Portfolio Investment

The course is a 7.5-credit advanced course in economics within the first-cycle level.

The course can be part of the following program 1) Bachelor's Programme in Business and Economics (S1EKA)

Admission to the course requires a minimum of 45 credits in Economics at basic- and intermediate level with a passing grade.

Prior knowledge equivalent to 15 credits in statistics is recommended.

The overall objective of the course is to give an introduction to basic portfolio theory, including CAPM and APT analysis, and its use for evaluating portfolio performance.

It is also an introduction to the valuation of derivative instruments, including options, forward contracts, futures contracts, and swaps, and their various uses for hedging and speculation purposes.

The course includes detailed exercise sets and computer labs involving internet data collection and computer analysis that should give the students the practical abilities to apply portfolio investment theory in order to analyze investment opportunities and conduct portfolio management.

On successful completion of the course the student will be able to:

1. understand and describe the basic mathematical and statistical methods commonly used by portfolio managers to value financial securities, including the valuation of both capital securities and derivative securities.

2. understand and describe important techniques commonly used by portfolio managers in the pursuit of various investment strategies, including techniques to reduce portfolio risk and measure portfolio performance.

3. demonstrate insight into the application of the methods and techniques used by portfolio managers for purposes of better understanding modern portfolio management and modern risk management practices.

The content of the course is presented mainly through lectures and in group exercises. A large part of the knowledge acquisition on the course is done through the student's own work.

Language of instruction: English

All learning outcomes are assessed through a written exam, laborations and seminars. A student who fails to attend when attendance is mandatory will need to make up for this through a special written assignment.

If a student who has failed the same examined element on two occasions wishes to change examiner before the next examination session, such a request is to be submitted to the department in writing and granted unless there are special reasons to the contrary (Chapter 6, Section 22 of the Higher Education Ordinance).

If a student has received a recommendation from the University of Gothenburg for study support for students with disabilities, the examiner may, where it is compatible with the learning outcomes of the course and provided that no unreasonable resources are required, decide to allow the student to sit an adjusted exam or alternative form of assessment.

In the event that a course has ceased or undergone major changes, students are to be guaranteed at least three examination sessions (including the ordinary examination session) over a period of at least one year, though at most two years after the course has ceased/been changed. The same applies to work experience and VFU, although this is restricted to just one additional examination session.

If a student has been informed that they meet the requirements to be a student at the National Sports University (RIU student), the examiner has the right to decide on adjustments during examinations, provided this is done in accordance with the Local Regulations for RIU students at the University of Gothenburg.

The grading scale comprises: Excellent (A), Very good (B), Good (C), Satisfactory (D), Sufficient (E) and Fail (F).

Course evaluation is conducted digitally and anonymously via the course website in connection with a lecture in the course. Students can also complete the survey at a later date.

The survey material is compiled and the results from the course evaluation along with proposals for possible improvement measures are discussed at the course committee meeting. After the course evaluation is completed, the results will be published ont the course homepage.

If changes to the course are made based on the course evaluation, this will be communicated at the course introduction for the upcoming student group.

Limitations: The course may not be included in the same degree as the sub-course "Portfolio Investment, 7.5 credits", which is part of NEG300, NE0300, as well as HNF635.