Investment process; Capital budgeting; Present value mathematics; Discounted cash flow models; Investment decision making under uncertainty; Investment performances; Leverage; Risk and return on investments.
AI103V Investment Analysis 7.5 credits
To provide students with basic theoretical and practical knowledge of investment decision making, and to prepare students for further studies in real estate finance and economics.
Course offerings are missing for current or upcoming semesters.
Headings with content from the Course syllabus AI103V (Autumn 2008–) are denoted with an asterisk ( )
Content and learning outcomes
Course contents
Intended learning outcomes
Course goals;The course should enable students to demonstrate ability to approach investment decision making in a rational and systematic manner by being able to:
- Identify and explain the basic steps in the investment process.
- Derive and understand the origin of the major formulas used in present value calculations.
- Evaluate different investment alternatives.
- Critically assess different investment criteria.
- Show how leverage affects investments.
- Identify major threats to an investment project’s success.
- Explain how risk is defined, list different sources of risk, and how to quantify risk.
- Describe how diversification affects the risk of a portfolio.
- Use decision trees to describe real options imbedded in projects.
- Discuss problems of forecasting.
- Develop Excel spreadsheets for investment decision-making.
- Basically understand portfolio theory, the capital asset pricing model (CAPM) and arbitrage pricing theory (APT).The course should also enable students to work as part of a team of people with different backgrounds.
Literature and preparations
Specific prerequisites
Prerequisites/eligibility: Completed upper secondary education including documented proficiency in English and 60 university credits of which 15 univeristy credits in Economics.
Recommended prerequisites
None
Equipment
None
Literature
Brealey, R & Myers, S: Principles of Corporate Finance. McGraw-Hill (latest edition)Geltner, D & Miller, N: Commercial Real Estate Analysis and Investments
Examination and completion
If the course is discontinued, students may request to be examined during the following two academic years.
Grading scale
A, B, C, D, E, FX, F
Examination
- TEN1 - Examination, 3.0 credits, grading scale: A, B, C, D, E, FX, F
- ÖVN1 - Exercise, 4.5 credits, grading scale: P, 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.
Take-home assignmentsInvestment analysis reportWritten exam
Other requirements for final grade
Take-home assignmentsInvestment analysis reportWritten exam
Opportunity to complete the requirements via supplementary examination
No information inserted
Opportunity to raise an approved grade via renewed examination
No information inserted
Examiner
No information inserted
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.
Further information
Course room in Canvas
Registered students find further information about the implementation of the course in the course room in Canvas. A link to the course room can be found under the tab Studies in the Personal menu at the start of the course.
Offered by
Main field of study
Technology
Education cycle
First cycle
Add-on studies
No information inserted
Contact
Fredrik Brunes, tel. +46 8 790 6933, fax + 08-4117436, e-post fredrik.brunes@infra.kth.se