The main purpose of the course is to show how the uncertainty in investment and financing projects can be analyzed. Based on an analysis of the stock market and exchange rates, it is possible to say something about the risk the owner and investor are exposed to. One can also use the results of the analysis to establish risk-adjusted interest rates. These can be used in connection with investment analysis. The course further provides an introduction to risk assessment, risk reduction and risk balancing by presenting portfolio theory. We will also look at debt ratio issues and introduce options theory and application of options.
Basic corporate finance, accounting, calculus /mathematics, and statistics.
Under revision. Students will be informed when classes begins.
A selection of papers will be available on Canvas.
On-campus housing is eligible for students applying for a full semester/academic year.
Knowledge (upon completion of the course, the student shall):
- Have perspective on the stock exchange as: an arena for acquisition of venture capital, a marketplace for the establishment of the market value of the company, and as a market for the pricing of risk
- Know how to compute the main statistical concepts; expected value/mean/median, standard deviation and correlation
- Know the concept of diversification and the reduction of risk exposure as a consequence of diversification
- Understand portfolio theory
- Know the consequences for investor of high/low gearing of the company and how the market value of the enterprise is affected by gearing
- Be able to perform statistical analysis of stock data; using spreadsheets to calculate: expected return, standard deviation, correlation and β (beta)
Skills (upon completion of the course the student shall be able to):
- Applying modern portfolio theory for finding optimal investment portfolios
- Calculating prices of option contracts
- Applying the CAPM to estimate the rate of return for investments
- Establish risk-adjusted rate of return in investments
- Calculating "financial figures" using spreadsheets
General competence (upon completion of the course the student shall be able to):
- Implement and disseminate financial analysis and assessments for the business management
- Be able to ask critical questions and reflect on crucial assumptions and theories within the field of corporate finance
An Orientation Week is arranged in the first week of the fall semester. Lectures are expected to begin during the following week.
Would you like to apply?
The course is available only for students coming from our partner institutions. Contact the International Coordinator at your home institution to find out if you are eligible for exchange studies at Inland Norway University of Applied Sciences (INN University). Please notice that applications can be submitted for one campus only.