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721383S Asset Pricing, 6 ECTS cr 
Code 721383S  Validity 01.08.2008 -
Name Asset Pricing  Abbreviation Asset Pricing 
Scope6 ECTS cr   
TypeAdvanced Studies Discipline6354 Finance 
  Grading1 - 5, pass, fail 
Unit Oulu Business School 

Elias Oikarinen 

ECTS Credits 

 6 credits

Language of instruction 




Period 3 (1st year)

Learning outcomes 

Upon completion of the course, students understand the foundations of asset pricing theory, empirical tests of asset pricing models, multi-factor asset pricing models, the stylized facts about stock returns.


Capital asset pricing model (CAPM) and its drawbacks, state pricing, stochastic discount factor, utility theory and risk aversion, consumption-based model, beta representation, ICAPM, Arbitrage pricing theory, regression-based tests of linear factor models, portfolio sorts, anomalies, multi-factor explanations, the cross-section of stock returns, time-series predictability of stock returns.

Mode of delivery 

Face-to-face teaching.

Learning activities and teaching methods 

36 hours of lectures, including class exercises. Students also engage in a group project in which they present assigned topic and write learning diaries for other presented topics.

Target group 

Students of the Master’s program in Finance

Prerequisites and co-requisites 

Fundamentals of Finance, Principles of Econometrics and Mathematical Economics (Recommended)

Recommended optional programme components 


Recommended or required reading 

The main readings include the lecture notes, a selected set of scientific articles, and other course material which will be distributed during the course. The companion books are the followings:

·         Cochrane, John H. Asset pricing. ( target=_blank>

·         Munk, Claus. Financial asset pricing theory. ( target=_blank>

Bali, Turan G., Robert F. Engle, and Scott Murray. Empirical asset pricing: the cross section of stock returns. John Wiley & Sons, 2016. ( target=_blank>

Assessment methods and criteria 

The final evaluation is based on the group presentation, reflections, classroom assignments, final exam, as well as other class activities.


The course utilizes a numerical grading scale 1-5. In the numerical scale zero stands for a fail.


Person responsible 

Asif Ruman

Working life cooperation 

The knowledge of the theoretical and empirical foundations of asset pricing models enables the student to implement different financial models for practical decision making.

Other information 

The number of students is limited.


Current and future instruction
Functions Name Type ECTS cr Teacher Schedule
registration period has not begun Asset Pricing  Course  Elias Oikarinen  10.01.22 -25.02.22

Future examinations
No examinations in WebOodi