Facts about the course
- ECTS Credits:
- 7.5
- Responsible department:
- Faculty of Business Administration and Social Sciences
- Course Leader:
- Kjetil Kåre Haugen
- Lecture Semester:
- Autumn
- Teaching languages:
-
- English
- Norwegian
- Duration:
- ½ year
BØK705 Investment Analysis (Autumn 2023)
About the course
- saving, investments, and risk-aversion
- valuation of financial assets (stocks and derivatives)
- valuation of real assets (firms and projects)
- financial policy (capital structure and dividends)
- moral hazard, adverse-selection, corporate governance, and the market for corporate control
- mergers and acqusitions
The course is connected to the following study programs
Recommended requirements
Bachelor's degree in Economics and Business Administration
In particular a bachelor's course in investments and financing (BØK300 at Molde University College).
The student's learning outcomes after completing the course
The purpose of the course is to expand the students knowledge of asset pricing and corporate finance. Arbitrage pricing theory and game theory are two new concepts that are introduced at the master's level. We apply the arbitrage pricing theory to both financial investments and real investments. We use game theoretic models with asymmetric information to understand conflicts of interest between owners, creditors, and management. A successful student should be able to use the course content to value financial assets and real assets, and be able to analyze financing decisions in situations with asymmetric information.
Knowledge after the course:
- understand how risk and return affect savings and investments
- understand and be able to apply the capital asset pricing theory to calculate the opportunity cost of capital
- understand and be able to arbitragearguments for valuation of both financial and real assets
- understand and be able to analyze the costs and benefits of debtfinancing of a corporation
- understand how the dividendpolicy affect stock prices
- understand how asymmetric information may create conflicts of interests between owners and creditors, between owners and management, and how these conflicts may be resolved
- understand how the market for corporate control works
- understand how mergers and acqusitions may be value creating and value reducing
Forms of teaching and learning
3 hours of lecture each week.
Examination
- Form of assessment: School assessment
- Proportion: 100%
- Duration: 6 hours
- Grouping: Individual
- Grading scale: Letter (A - F)
- Support material: Calculator with empty memory + general dictionary in mother tongue/Norwegian/English in paper version
Syllabus