MSc in Economics and Business Administration - Finance and Investments

You will develop a deep understanding of the structure and workings of financial markets and financial institutions. Building on relevant quantitative and IT skills, you will learn to master state-of-the-art theoretical and empirical models for investment decisions and for the pricing and risk management of stocks, bonds, and derivative securities.

Financial instruments and investments

You will be trained in analysing stocks, bonds, and derivative securities using prevalent models for pricing and risk management. Investors form portfolios of different securities, and you will learn analytical tools for selecting portfolios optimally. The risk-return trade-off is essential to investments, and modern finance focuses on identifying relevant risk measures and the risk premia investors can obtain by exposing themselves to the various sources of risk. You will see theoretical models of the risk-return trade-off, but also empirical studies of the observed risk-return relation.

Financial industry and markets

You will obtain a solid knowledge of the different players in financial markets.  Companies use financial markets for raising capital, for short-term liquidity and risk management, and as a source of information for internal decisions related to capital budgeting and corporate governance. Households interact with financial markets when saving and investing for retirement or other purposes and when taking mortgages and other loans. Banks and other financial institutions act as intermediaries facilitating transactions and the efficient allocation of capital among corporations and households, but they also act in their own behalf as large profit-seeking and risk-taking market players and are therefore heavily regulated by society. You will learn about the financial decisions of companies, households, and financial institutions and the influence these decisions have on financial markets.

Analytical and communicative skills

The understanding and applications of both theoretical models and empirical methods in finance require specialized skills in mathematics, statistics, and IT. By nature, financial models build on tools and concepts from probability theory and statistics in order to represent the uncertainty which is so crucial for financial decisions. Computer-based quantitative software is wide-spread in the financial industry as it expedites the applications of the often quite complex models. The programme provides you with sufficient training of the necessary abilities both in a dedicated first-semester course and integrated in other courses whenever relevant. Communicative skills are developed through shorter assignments and longer written reports, as well as both oral and written exams.