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Blekinge Institute of Technology
Department of Industrial Economics

Revision: 3
Reg.no: BTH-4.1.1-0560-2018


Course syllabus

Financial Modeling

Financial Modeling

7.5 credits (7,5 högskolepoäng)

Course code: IY2606
Main field of study: Industrial Economics and Management
Disciplinary domain: Technology
Education level: Second-cycle
Specialization: A1F - Second cycle, has second-cycle course/s as entry requirements

Language of instruction: English
Applies from: 2018-10-01
Approved: 2018-10-01

1. Descision

This course is established by Dean 2017-11-29. The course syllabus is approved by Head of Department of Industrial Economics 2018-10-01 and applies from 2018-10-01.

2. Entry requirements

For admission to course requires completed course Corporate Finance, 6 credits.

3. Objective and content

3.1 Objective

This course deepens the analysis of how financial risk can be managed using financial derivatives and real options as well as portfolio selection theory. The course further develops the understanding of how capital markets work and the relationship between capital markets and companies in creating economic value.

3.2 Content

  • Portfolio Choice Theory
  • Option Theory
  • Models for asset pricing
  • Linear and non-linear models for managing risk

4. Learning outcomes

The following learning outcomes are examined in the course:

4.1. Knowledge and understanding

On completion of the course, the student will be able to:

  • account for different types of financial derivatives
  • explain the role of financial derivatives for risk management
  • account for portfolio composition for different risk / return profiles
  • show an understanding of different types of pricing models for financial and real investments
  • show an understanding of the difference between and the use of discrete and continuous models in financial analysis

4.2. Competence and skills

On completion of the course, the student will be able to:

  • build models for financial analysis regarding risk and return
  • estimate and interpret central parameters in linear and nonlinear models that the course deals with

4.3. Judgement and approach

On completion of the course, the student will be able to:

  • explain financial markets and the role of derivatives in the financial risk management

5. Learning activities

Teaching activities in the course consist of lectures and supervision.

6. Assessment and grading

Modes of examinations of the course

Code Module Credit Grade
1905 Written assignment 1 1.5 credits GU
1915 Written assignment 2 1.5 credits GU
1925 Written examination 4.5 credits AF

The course will be graded A Excellent, B Very good, C Good, D Satisfactory, E Sufficient, FX Failed result, a little more work required, F Fail.

The information before the start of the course states the assessment criteria and make explicit in which modes of examination that the learning outcomes are assessed.

An examiner can, after consulting the Disability Advisor at BTH, decide on a customized examination form for a student with a long-term disability to be provided with an examination equivalent to one given to a student who is not disabled.

7. Course evaluation

The course evaluation should be carried out in line with BTH:s course evaluation template and process.

8. Restrictions regarding degree

The course can form part of a degree but not together with another course the content of which completely or partly corresponds with the contents of this course.

9. Course literature and other materials of instruction

Luenberger, D. G. ”Investment Science” (latest edition), Oxford University Press

Tsay, R.S. ”An introduction to analysis of financial data with R” (latest edition),Wiley

Scientific articles on a maximum of 500 pages may be included