Capital Market Theory

Om faget

Emner

Økonomi Finansiering

Fagets indhold

The objective of the course is to develop a deeper understanding of the role and inner workings of financial markets and financial instruments such as stocks, bonds, and derivatives. We will place particular emphasis on helping you develop a systematic way of thinking about and making investment decisions.

The topics we will explore include the following:
• the basics of risk and return
• the investment process and the importance of asset allocation
• how financial markets operate
• portfolio theory and how to form optimal portfolios
• index models, alphas and betas
• equilibrium models of security prices, including the Capital Asset Pricing Model
• security price anomalies such as the size, book-to-market, and momentum effects in stock returns
• the role of fixed income securities in the portfolio
• the use and valuation of derivatives

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Det lærer du

The course aims at providing students with the institutional information, the models, and the computational methods relevant for a systematic approach to investment decisions.

Explain the concepts, theories, models, and methods for portfolio selection, risk measurement and management, the risk-return tradeoff, and the pricing of stocks, bonds, and derivative securities as discussed during the course.
Discuss the theoretical and empirical validity of the central theories and models developed in the course.
Apply the theories and models to realistic problems.
Implement relevant models using Excel or similar computational tools
Discuss the role of capital markets, the efficiency of capital markets, and theories about investor behavior

Course prerequisites

This course is offered as an elective to incoming exchange students. It is a mandatory course for the MSc in Applied Economics and Finance. It is assumed that students have knowledge similar to the entry requirements for this program. Students will be selected based on their application. Please send a 1-page motivational letter, a 1-page CV, and a grade transcript to ily.stu@cbs.dk before the registration deadline for elective courses.

Fakta

Niveau

Kandidat

Type

Obligatorisk fag – også udbudt som valgfag

ECTS

7,5

Fagkode

CEAPO1003U

Undervisningsperiode

Efterår – semester

Studieår

2026/2027

Sprog

Engelsk

Undervisningsform

Hybrid

Eksamen

Skriftlig eksamen på campus
Individuel eksamen, vinter

Bedømmelse

7-trins skala