Mortgage loans, commercial property loans, bonds, fixed and fixed interest rates, interest rate derivatives, financial leverage, credit risks, interest rate risks, capitalization rates and property yields, real estate valuation, investment analysis, net operating income, property before tax cash flows, risk analysis, securitization, real options, land valuation, REITs and listed property shares, optimal portfolio theory, multi-asset portfolios with real estate and other assets.
AI2153 Financial Economics with Real Estate Applications 7.5 credits
Choose semester and course offering
Choose semester and course offering to see current information and more about the course, such as course syllabus, study period, and application information.
Application
For course offering
Autumn 2024 Start 28 Oct 2024 programme students
Application code
50424
Content and learning outcomes
Course contents
Intended learning outcomes
Upon completion of the course, students will be able to
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analyze and compare risk and return characteristics for different real estate financing solutions, both from borrower's and lender's perspectives,
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apply different investment analysis methods to analyze direct and indirect real estate investment alternatives,
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calculate optimal asset allocations with real estate as one of several asset classes in a portfolio,
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give examples of how actors in the real estate and financial markets work to develop solutions that can lead to sustainable economic, environmental and social development.
Literature and preparations
Specific prerequisites
Knowledge in financial economics equivalent to the content in the course AI2135.
Recommended prerequisites
Equipment
Literature
Information about course literature is presented in the course PM.
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
Examination
- INL1 - Assignment, 3.0 credits, grading scale: P, F
- TEN1 - Written Exam, 4.5 credits, grading scale: A, B, C, D, E, FX, F
Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.
The examiner may apply another examination format when re-examining individual students.
Opportunity to complete the requirements via supplementary examination
Opportunity to raise an approved grade via renewed examination
Examiner
Ethical approach
- All members of a group are responsible for the group's work.
- In any assessment, every student shall honestly disclose any help received and sources used.
- In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.