[Business Administration] Investments and Capital Markets


General information

Course name Investments and Capital Markets
Course type Lecture+Tutorial
Course code BWL-InvCapM
Course coordinator Professor Dr. Peter Nippel
Faculty Faculty of  Business, Economics and Social Sciences
Examination office Faculty of  Business, Economics and Social Sciences
Short summary We consider the basics of investments on capital markets and take a close look into the theory of portfolio selection. With this normative theory as a building block we come to the main theories of capital market equilibrium, and then apply equilibrium and arbitrage-free valuation to bonds, stocks, and derivatives.

Information about study level

Study level Master
Also possible for Second year Bachelor

Information about credit points, evaluation and frequency

Evaluation Exam
Frequency Winter term

Information about teaching language

Teaching language English
Minimum language requirement B2
Further information on the teaching language  

Information about requirements

Recommended requirements Courses “Finanzwirtschaft I” and “Finanzwirtschaft II” (CAU-Bachelor) or equivalent! This means that you should be very familiar with the fundamentals of Capital Budgeting and Corporate Finance. Furthermore you should be familiar with the basic concepts of decisions under risk (see the Course “Entscheidung”)

Information about course content, reading list and additional information

Course Content
  • The Investment Universe: Shares, Bonds, Hybrids, and Derivatives.
  • Return and Risk: Promised Returns, Expected Returns, Compounding Periods, Time Series Analysis, Risk.
  • Individual Decisions (1): Risk Preferences and Optimal Capital Allocation
  • Individual Decisions (2): Efficient Diversification and Portfolio Selection
  • Individual Decisions (3): Index Models
  • Market Equilibrium (1): Capital Asset Pricing Model
  • Market Equilibrium (2): Arbitrage Pricing Theory and Multifactor Models
  • Valuation (1): Bonds
  • Valuation (2): Stocks
  • Valuation (3): Forwards and Futures
  • Valuation (4): Options
  • Valuation (5): Swaps
Reading list Bodie, Zvi, Alex Kane and Alan J. Marcus, Investments and Portfolio Management (“Global Edition”), 9. Ed. (2011)
Additional information Tutorial may be an E-Learning course Solving homework assessments for the tutorial may be required as a pre-requisite for credit points.