Economics: Foundations of Finance

You learn a theoretical foundation that forms the basis of individual financial decisions. Based on microeconomic theory, you will be equipped to form decisions of picking individual financial investment opportunities as well as combining them in a financial portfolio. Based on these individual decisions, we deal with theories that allow you to find the fair price of different real-life financial products including equities, fixed-income securities and financial options.

We also cover determinants of optimal financial decisions for private households (Household Finance).

Finally, you are equipped with tools for evaluating investment decisions when accounting for Environmental Social and Governance (ESG) concerns.

Course literature

The course literature listed may be updated up to eight weeks before the course begins.

The course consists of on-campus lectures. The lectures are complemented by exercise sessions, where you will apply and deepen the theories discussed in the lectures and prepare for the exam consisting of similar exercises. The exercises are further complemented by computer lab sessions where you will apply the theories to real-life numerical examples solved with standard spreadsheet software.

The course concludes with a final exam. Assessment also consists of assignments in the form of exercises related to the computer labs.

Prerequisites

Students admitted to the Master Programmes in Finance are qualified for this course. For other students, at least 90 ECTS-credits in economics are required. These must include a course in basic financial economics, an intermediate course in microeconomics (e.g., NEKG21 "Intermediate Microeconomic Analysis"), and an intermediate course in econometrics, quantitative methods or an equivalent course (e.g., NEKG31 "Econometrics", or 15 ECTS-credits in statistics).

Selection criteria

Seats are allocated according to: ECTS (HPAV): 100 %.

Tuition fees for non-EU/EEA citizens

Citizens of countries outside:

• The European Union (EU)
• The European Economic Area (EEA) and
• Switzerland

are required to pay tuition fees. You pay an instalment of the tuition fee in advance of each
semester.

Tuition fees, payments and exemptions

Full programme/course tuition fee: SEK 18,750
First payment: SEK 18,750

Convert currency – xe.com

Note that you may also need to pay an application fee, or provide proof of exemption.

Application fee

No tuition fees for citizens of the EU, EEA and Switzerland

There are no tuition fees for citizens of the European Union (EU), the European Economic Area (EEA) and Switzerland.