|Language of instruction
Period 1-2 (2nd year)
Upon completion of the course, students understand the key concepts in portfolio management and are able to implement and evaluate equity trading strategies on the basis of academic evidence.
Neoclassical finance and economics concepts in portfolio management; asset managers and their role in the economy; major asset classes and their key characteristics; expected utility; mean-variance portfolio optimization, shortcomings and developments; factor theory; return predictability; risk management; portfolio performance evaluation; equity investment strategies; asset allocation and macro strategies.
|Mode of delivery
|Learning activities and teaching methods
36 hours of lectures, including exercises and computer lab sessions. Students also engage in a group project in which they select, implement and test an equity trading strategy.
Students of the Master’s program in Finance
|Prerequisites and co-requisites
|Recommended optional programme components
Fundamentals of Finance, Principles of Econometrics and Mathematical Economics (Recommended)
|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:
· Pedersen, Lasse Heje. Efficiently inefficient: how smart money invests and market prices are determined. Princeton University Press, 2015 (
· Ang, Andrew. Asset management: A systematic approach to factor investing. Oxford University Press, 2014. (
Following books are useful as background reading:
· Ilmanen, Antti. Expected returns: an investor’s guide to harvesting market rewards. John Wiley & Sons, 2011. (
Bodie, Zvi. Investments. McGraw-Hill, 2013. ( target=_blank>https://oula.finna.fi/Record/oula.1238073)
|Assessment methods and criteria
The final evaluation is based on group work, which includes a term paper and two presentations, a set of weekly assignments or learning diaries, as well as class activities.
The course utilizes a numerical grading scale 1-5. In the numerical scale zero stands for a fail.
|Working life cooperation
Understanding the concepts and techniques of portfolio management are necessary for careers in financial industry.
The number of students is limited.