[Forside] [Hovedområder] [Perioder] [Udannelser] [Alle kurser på en side]
After completion of the course, it is expected that the student can:
- explain the general modeling techniques presented in the course and apply them to specific problems similar to those studied in the course
- explain how the results in the specific models are derived
- provide and discuss economic interpretations of the models and the results
- evaluate and compare the assumptions and results of different models
The course focuses on the optimal consumption and investment decisions of utility-maximizing individuals in an intertemporal setting. The analysis is carried out in a continuous-time framework in which the basic uncertainty is represented by Brownian Motions. General results on diversification, fund separation, and intertemporal hedging are derived and discussed. A number of specialized models for long-term investment problems of individuals are analyzed in detail. The appropriateness of popular investment advice is discussed. The lectures include occasional discussions of exercises.
Course subject areas:
4388 Derivatives and Risk Management
6330 Advanced Financial Economics
Claus Munk
Lectures and exercises
Munk, C., "Dynamic Asset Allocation," Lecture notes, Aarhus University.
Articles.
Form of assessment Take-home exam
Examination aids allowed All