MS-E2114 - Investment Science D, Lecture, 4.9.2023-14.12.2023
This course space end date is set to 14.12.2023 Search Courses: MS-E2114
Topic outline
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Exercise Sessions
We recommend that the students attend at least the first exercise session, because practical matters relating to the assignments and the exercises will be covered during the session.
Exercise sessions will be held on Tuesdays at 14.15 - 16.00 starting from 5 September 2023 in Hall D (Y122). The exercise sessions will be held in Hall U6 KONECRANES (U149) starting from 24 October 2023.
The topics of the exercise sessions are those presented in the lectures of the same week. During the sessions, the course assistant demonstrates solutions to both exercises and assignments. The students will also present solutions to exercises and be awarded points during all exercise sessions, except the first. See details below.
Presentation sheet: https://docs.google.com/spreadsheets/d/1-vQXO6aIusJpAV4ySHvNLwexUKL4a_93Z7mM_vKfVH0/edit?usp=sharing
Exercise Session Schedule
# Date Assignment Deadline Content 1 05.09 - Basic cash flow calculations. PV and IRR, inflation. 2 12.09 - Annuity formula. Mortgage calculations. Bond calculations. Duration. 3 19.09 1 Spot rates, duration. 4 26.09 2 Applied interest rate analysis. 5 03.10 3 Mean-variance portfolio theory. 6 10.10 4 Capital asset pricing model. 7 24.10 5 Models and data, General principles. 8 31.10 - Derivative instruments. 9 07.11 - Basic options theory. 10 14.11 6 Options pricing in binomial lattice. 11 21.11 7 Options pricing in continuous time. 12 28.11 8 Interest rate derivatives. Assignments
Amount: 8 assignments.
Deadlines: See the deadlines from the assignment submission boxes.
Points: Each assignment awards 70 points for correctness and 30 points for quality.
Maximum points: 8 * 100 = 800 (see the scaling in the course syllabus).
Student presentations: Will not be presented by students.
Submission: Will be submitted separately by each student.
Solutions: Will not be provided, although, verbal or written comments may be provided.
Other: You should preferably not start working on the assignments earlier than 1 week before the deadline (so that the lectures and exercises have handled all necessary materials).Exercises
Amount: 12 exercise task sheets of which 11 award points for student presentations.
Deadlines: The exercises will be presented by students during the corresponding exercise session. For example, the tasks of the second exercise sheet will be presented during the second exercise session.
Points: Willingness to present a solution to a specific task will award 50 points. The students are always asked to present the two first tasks for each exercise session. For example, exercise session 2 will have students present tasks 2.1 and 2.2. See exercise task files below. No points for mere attendance.
Maximum points: 11 * 100 = 1100 (see the scaling in the course syllabus).
Student presentations: Will be presented by randomly selected students.
Submission: Will not be submitted by students (unless otherwise stated).
Solutions: Will be provided after each session.Assignment Templates
Excel templates will be provided for each assignment. They document themselves and are provided with their respective assignment. You can verify your solutions with usage of the HASH and CHECKSUM sections. The sections work automatically, but false positives are possible. Errors caused by numeric inaccuracies are also possible. Grading will always be based on the actual solution, not on hashes.
Note: Avoid using commands that change cell references, such as, the cut command, otherwise you may destroy some functionality. Do not use rounded numbers. Usage of, for example, Excel Solver may result in slight numerical errors and thus false negatives.
IMPORTANT: Submitting the Excel template is enough for full marks, no need for any additional reports or files. The Excel templates are recommended, but they are not the only way to complete the assignments (e.g. PDF submissions are also accepted).