Intermediate finance

This course can be taken as a singular course. To be eligible for the singular course, the applicant must meet the admission requirements for the associated master's programme.

This course provides a broad and applied introduction to modern finance. Its aim is to equip students both a theoretical understanding and practical skills in key areas of financial economics, including portfolio theory, asset pricing, risk management, and valuation.

The course emphasizes the integration of theory and empirical methods, introducing students to data-driven and model-based analyses commonly employed in the financial sector av well as in academic research.

Local admission, application code 9371 Master`s level singular course.

A Bachelor's degree or equivalent in economics. (An example of an equivalent degree can be another bachelor's degree containing a minimum of 80 ECTS credits in BusinessAdministration.)

Upon successful completion of the course, students will have achieved the following learning outcomes in terms of knowledge, skills, and general competence:

Knowledge

The student:

• has advanced knowledge of modern portfolio theory and its implications for diversification and the risk-return trade-off.
• understands the foundations of classical asset pricing models, including the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT), and possesses advanced insight into extensions such as the Black-Scholes model.
• has a thorough understanding of volatility modelling (ARCH and GARCH) and how such models are used to measure and forecast financial risk.
• understands the fundamental principles of credit risk, Value at Risk (VaR), and financial risk management.
• can explain and evaluate the relationship between capital structure and firm value, and how valuation is affected by financing decisions.
• can analyse the economic implications of digital financial technologies such as blockchain and cryptocurrencies and demonstrate a fundamental understanding of their role in financial markets.

Skills

The student:

• can apply portfolio theory to construct and evaluate portfolios based on risk and expected return.
• can estimate and empirically test asset pricing models, including the use of Generalized Method of Moments (GMM) and regression analysis.
• can implement ARCH and GARCH models using financial time-series data and interpret the results.
• can calculate Value at Risk (VaR) and evaluate different risk measures in practical settings.
• can carry out basic corporate valuation while accounting for capital structure considerations.
• can use computational tools to simulate and analyse financial models, including the application of maximum likelihood estimation methods.

General Competence

The student:

• can analyse and communicate financial issues on a sound academic and professional basis.
• can critically evaluate financial models and understand their practical limitations.
• can collaborate on quantitative analyses and present findings effectively in both written and oral formats.
• has developed an understanding of how theory, data, and quantitative models are integrated in practical applications of risk management and valuation.

If you pass the examination in this course, you will get an reduction in credits (as stated below), if you previously have passed the following courses:

• BED-3042 Intermediate Finance 7.5 ects
• SOK-3060 Intermediate Finance 7.5 ects

Language of instruction and examination

Schedule

This course is open to incoming exchange students.

Study level: Master’s

Admission prerequisites:This course has admission prerequisites, which are listed under the Admission requirements section. Please review this information carefully before adding the course to your Learning Agreement.

For details on how to apply for exchange, course selection guidelines, or to contact the Incoming Admissions Team, please visit: Admissions for Student Exchange.

More info about the coursework requirements

Re-sit examination