Economics: Portfolio Selection

You learn how to build a financial portfolio by combining different stocks of equity to optimise the trade-off between risk and return. We explore how to measure and evaluate the risk and performance of financial investments. To achieve this, we involve several different models to empirically estimate the fair return rates and use them to find the fair price of stocks.

We look at common mistakes people make when investing (behavioural finance) and how these affect the market. We compare it to a more traditional view of an efficient stock market. Finally, you get tools to evaluate investment decisions that take the Environmental, Social and Governance (ESG) framework into account.

Course literature

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

The course consists of lectures and computer exercise sessions. There are exercise tasks linked to each exercise session where you apply the insights from the lectures to form and evaluate financial portfolios using real-life data and standard spreadsheets software. You submit the results as a lab report.

The examination consists of the the lab reports and a final written exam.

Prerequisites

General and at least 20 ECTS basic economics, of which at least 7.5 ECTS basic microeconomics and at least a course in basic financial economics.

Selection criteria

Seats are allocated according to the following: The general average (GPA) of your higher secondary school leaving certificate: 34 %, The Swedish national university aptitude test: 34 %, number of previous ECTS at the application deadline (up to 165): 32 %.

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 16,250
First payment: SEK 16,250

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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.