Please note! Course description is confirmed for two academic years (1.8.2018-31.7.2020), which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


The student has a good understanding of the key concepts and methods of investment science, including topics such as interests rates; cash flow analysis; Markowitz' portfolio theory; capital asset pricing model; arbitrage pricing theory; forward, futures and option contracts; pricing of options; hedging; interest rate derivatives; interest rate dynamics. 

The student is able to formulate and solve problems involving financial instruments. The student has a strong foundation for pursuing advanced studies in financial engineering and quantitative finance. 

Credits: 5

Schedule: 07.09.2020 - 10.12.2020

Teacher in charge (valid 01.08.2020-31.07.2022): Ahti Salo

Teacher in charge (applies in this implementation): Antti Punkka, Ahti Salo

Contact information for the course (applies in this implementation):

CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English


  • Valid 01.08.2020-31.07.2022:

    Financial instruments of investment science and finance, risk analysis, term structure of interest rates, pricing of derivatives, optimization of investment portfolio return.

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    Exam and assignments

  • Valid 01.08.2020-31.07.2022:

    Contact hours 48 h. Attendance is not compulsory
    Assignments 25h 
    Autonomous studies 55h


Study Material
  • Valid 01.08.2020-31.07.2022:

    D.G. Luenberger: Investment Science, Oxford University Press, either 1st (1998) or 2nd edition (2013). 

Substitutes for Courses
  • Valid 01.08.2020-31.07.2022:

    Mat-2.3114 Investment science

  • Valid 01.08.2020-31.07.2022:

    MS-A00XX, MS-A01XX, MS-A02XX, MS-A05XX

SDG: Sustainable Development Goals

    8 Decent Work and Economic Growth

    9 Industry, Innovation and Infrastructure



Registration and further information