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Duration
Identical coursesAsset Pricing and Investment Management (B-KUL-HMI21A)
Vadasz Tamas (coordinator) | Vadasz Tamas Aims
In this course we study the theoretical foundations of modern portfolio management, then, equipped with this theoretical background, we discuss practical implications and learn about contemporary issues in investment management. The aim of the course is to equip students with a broad and general understanding of financial markets, products, institutions and trading mechanisms. By the end of the course, students will be able to (i) demonstrate a sound understanding of modern asset valuation and portfolio management techniques, (ii) collect and analyse financial market data and draw conclusions based on their findings, and (iii) critically assess various empirical and practical aspects of the investment environment, reflecting their theoretical understanding of the economics of asset management.
Previous knowledge
There is no specific prior knowledge required for this course.
Is included in these courses of study
- Master in de handelswetenschappen (dag + avond, programma voor studenten gestart vóór 2024-2025) (Brussel) (Specialisatie finance en banking) 60 ects.
- Master of Business Administration (Brussels) (Track Financial Analysis) 60 ects.
- Courses for Exchange Students Faculty of Economics and Business (Brussels)
Activities
6 ects. Asset Pricing and Investment Management (B-KUL-HMI21c)
Content
We start with an in-depth review of modern portfolio theory and asset pricing models (Markowitz-model, CAPM, Factor models) and learn how these theories can be implemented and used in practice. Then, we discuss empirical research in investments and portfolio management, and study important concepts such as market efficiency and market microstructure. Further topics include valuation and management of specific asset classes such as stocks, bonds, and derivatives. Finally, we conclude the course with a selective review of some contemporary issues in asset managementand discuss recent trends in financial markets.
This ex-ante list of contents is conditional to changes during the academic year, which may also reflect students’ interest in specific topics.
Course material
There is no compulsory textbook for the course. The primary course material consists of lecture slides and seminar problem sets that will be provided via Toledo. We will also use a series of academic research papers, available online.
The following optional textbooks can be used as a useful reference for most of the course content:
- Zvi Bodie, Alex Kane, and Alan J. Markus, Investments, 11th ed., 2018, Irwin McGrawHill.
- Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, and William N. Goetzmann, Modern Portfolio Theory and Investment Analysis, 9th ed, 2014, Wiley
Further optional reading list will be provided throughout the course.
Evaluation
Evaluation: Asset Pricing and Investment Management (B-KUL-H74396)
Explanation
Evaluation caracteristics
Students will be evaluated with a combination of group- or individual assignments (30% of total score) during the term, and a final written exam during the regular exam period (70%).
- Assignments will require a submission of a written report on various portfolio-analysis problems, which may include implementation of a data-driven exercise using Excel or another analytical/statistical software tool of the Student’s choice. Group tasks may also involve in-class presentations.
- The final exam consists of a combination of single-answer and multiple-answer test questions, numerical open questions, and short essays.
- Students must achieve at least 40% of the points on the final written exam (70% of total) to pass.
Information about retaking exams
Only a written exam (100% of the total grade)