Course description

The course covers basic concepts of portfolio theory and asset pricing, in particular models for bonds and stocks. It also covers the efficient market hypothesis, return predictability, and the joint hypothesis problem.

Furthermore, the course aims to provide students with a better understanding of the links between macroeconomics and financial economics, e.g. how financial markets and the real economy interact, in particular in times of crises, and how macroeconomic consumption-savings models relate to asset pricing models such as the CAPM. Finally, the course has an empirical component.
Students are asked to apply the notion of efficient markets and multiple hypotheses testing in regression analysis to the performance evaluation of mutual funds.

N.B. This is a level III course only, the prerequisite courses are: Intermediate Micro, Intermediate Macro, Empirical Methods in Economics I or equivalent courses in intermediate Economics.



Roine Vestman

Administrative Office:

Office hours: Mon-Thu, 12.30-13.30, closed on Fridays. Room A497.
Phone 16 30 38, e-mail:


  • Schedule Please note that schedule changes may occur prior to registration without notice.
  • Exam information
  • Course web: (TBA) (please see the Mondo-site for more course information)
  • Course literature:
    Zvi Bodie, Alex Kane & Alan J. Marcus, Investments, Global Edition, McGraw-Hill Education, latest edition.