Theory of Investments

(Autumn 2009)


Lecture notes will be available in three parts at Pro Gradu book store. The first part is now available. It is obligatory to attend the first lecture, as groups are formed for the term paper and case work.


Code: LAS.147

Credit Units: 5 cu

Teacher: Professor Janne Äijö and Assistant Professor Jarkko Peltomäki

Office hour: Wednesday 14-14.45


Requirements for the credit units: Exam + Term Paper + Case (Lectured by Dr. Ilkka Tomperi)

Please note: All parts are required to the grade!

Grading: Exam 60% + Term Paper 25 % + Case 15%

Previous study requirements:

- Yrityksen rahoituksen perusteet

- Theory of Corporate Finance

Course objective: To describe how investing in securities, such as stocks, bonds, options and futures contracts takes place in internationalized financial markets.

Course contents:

Investment process, strategies, financial systems, institutions and markets, securities trading, risk and return, asset allocation and diversification, pricing models, efficient market hypothesis, performance evaluation, security analysis, derivatives markets and instruments, international diversification.

Course literature:

1. BODIE, ZVI, ALEX KANE and ALAN J. MARCUS: Investments, Richard D. Irwin, Homewood, Ill., Latest Edition.

2. Material provided by the lecturers.

3. Addtional reading: Nikkinen, Rothovius & Sahlström: Arvopaperisijoittaminen (in finnish).



Week 45 (Prof. Äijö):

Monday 14-16, B201Wolff

Wednesday 14-16, B201Wolff

Thursday 13-16, B201Wolff

Week 46 (Assist. Prof. Peltomäki) :

Monday 14-16, B201Wolff

Tuesday 10-14, K218Nissi

Wednesday 8-12, B201Wolff

Thursday 13-17, B201Wolff

Friday 10-12, K218Nissi

Week 47 (Prof. Äijö) :

Monday 14-16, K218Nissi

Tuesday 12-16, K218Nissi

Wednesday 10-14, K218Nissi



The exercises

Teacher: Assistant Denis Davydov :



Case study and Term paper:

Results (2009-10).


Goto: Term paper (To be updated)


Downloads for the Tomperi's Case:

Instructions for the case .

Lecture notes (Updated 8.12.2009!).


Download for the examination of the abnormal return:

Nokia Tyres, abnormal returns .