FAI3008 The Financial System in Theory and Practice 7.5 credits

Det finansiella systemet i teori och praktik

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Course information

Content and learning outcomes

Course contents *

  • 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.

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.

Course Disposition

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Literature and preparations

Specific prerequisites *

Basic courses in mathematics, statistics and economics/finance.

Recommended prerequisites

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Equipment

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Literature

Lecture notes

Examination and completion

Grading scale *

P, F

Examination *

  • INL1 - Assignment, 7.5 credits, Grading scale: P, F
  • 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.

Other requirements for final grade *

Handing in solutions to problem sets and satisfactory participation in the lectures.

Opportunity to complete the requirements via supplementary examination

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Opportunity to raise an approved grade via renewed examination

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Examiner

Kent Eriksson

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web FAI3008

Offered by

ABE/Real Estate Business and Financial Systems

Main field of study *

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Education cycle *

Third cycle

Add-on studies

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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.

Postgraduate course

Postgraduate courses at ABE/Real Estate Business and Financial Systems