- Preferences, utility functions, risk and uncertainty.
- Consumption-based asset pricing.
- Stochastic discount factors, the law of one price and arbitrage.
- Mean-variance analysis and CAPM.
- Factor models and APT.
- Asset pricing and macroeconomic models.
- Empirical issues connected to the models.
FAI3008 The Financial System in Theory and Practice 7.5 credits
Information per course offering
Course offerings are missing for current or upcoming semesters.
Course syllabus as PDF
Please note: all information from the Course syllabus is available on this page in an accessible format.
Course syllabus FAI3008 (Autumn 2020–)Headings with content from the Course syllabus FAI3008 (Autumn 2020–) are denoted with an asterisk ( )
Content and learning outcomes
Course contents
Intended learning outcomes
The objective of the course is to give the participants an introduction to the theory of asset pricing, and how these models connect financial economics with macroeconomics. The focus is on theoretical models, but some empirical issues will also be considered.
Literature and preparations
Specific prerequisites
Basic courses in mathematics, statistics and economics/finance.
Literature
You can find information about course literature either in the course memo for the course offering or in the course room in Canvas.
Examination and completion
Grading scale
P, F
Examination
- UPP1 - Written report, 7.5 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.
If the course is discontinued, students may request to be examined during the following two academic years.
Other requirements for final grade
Handing in solutions to problem sets and satisfactory participation in the lectures.
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.
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
This course does not belong to any Main field of study.
Education cycle
Third cycle