BUS322 Financial Investment and Risk Management

This course covers key topics and issues within financial market analysis and financial risk management. Throughout this course, the students will acquire knowledge of modern financial markets and asset management as regards risk and return in financial market investments, portfolio optimization, evaluation of investment management and risk management. Financial decisions must now also increasingly factor in sustainability considerations for ongoing commercial and societal success, and we will visit the environmental, social and governance (ESG) dimensions of finance problems.

Our purpose is to acquire practical business skills that may be applied within financial market analysis and financial risk management. The teaching is based on a mixture of traditional lectures, guest lectures, and classes where the students solve practical exercises in Excel.

Upon successful completion of the course the student:

Knowledge

• Should understand the principles of pricing and valuation in financial markets
• Should know portfolio theory and its relation to the capital asset pricing model (CAPM)
• Should understand the underlying principles of asset allocation and strategies, and evaluation of fund performance and risk management

Skills

• Should be able to apply the theories and models on practical problems that are relevant to finance professionals
• Should be well familiar with downloading data from databases such as Refinitiv Datastream and other databases, as well as solving optimization problems and carry out analysis of investments and markets in Excel
• Should be able to identify the ESG dimensions of finance problems

General competence

• Should be well conversant with the concepts, terms and issues in finance, and have a solid understanding of how financial markets function and how risk is measured and managed