Portfolio Theory and Financial Applications


Content, progress and pedagogy of the module

This module is an in-depth study of investment portfolios: the theory behind them, construction techniques, and with real-world applications. The student will acquire knowledge and skills about the opportunities and limitations of portfolio theory which are useful in a professional advisory role or portfolio management role.

The purpose of this module is for the student to gain knowledge, skills, and competencies at an advanced level such that the student can discuss and analyse central concepts, methods, models, tools and problems within the subject area.

Learning objectives


The objective is that the student after the module possesses the necessary knowledge on:

  • and insight in the theories, concepts, models, and methods within the subject area.
  • the principles and tools of portfolio theory, portfolio risk, and how to implement theory and methods on real data.
  • central aspects within the theories, models, and methods within the subject area; and in addition, the student should demonstrate an understanding of relevance, reliability and validity about these.


The objective is that the student after the module possesses the necessary skills in:

  • engaging in professional discussions and advices on how to construct portfolios with different risk characteristics.
  • analysing and assessing results with respect to their validity, relevance, and limitations with the purpose of deducing a basis for a decision and conclusion regarding a particular financial problem based on the conducted analyses and calculations.
  • applying and integrating the skills and knowledge in companies, financial institutions, in advisory roles, or the finance profession in general.


The objective is that the student after the module possesses the necessary competences in:

  • identifying theoretical and practical financial problems of the companies or financial institutions, and choose and put in place relevant solutions such that the ability to analyse, derive, weigh and judge the different alternative actions is clearly demonstrated.
  • reflecting upon the theoretical frame of reference and apply this to analyse and solve financial problems.
  • creating and analysing portfolios of financial securities and in assessing the risk of the constructed portfolio.

Type of instruction

For information see §17.



Name of examPortfolio Theory and Financial Applications
Type of exam
Written or oral exam
Individual examination.
AssessmentPassed/Not Passed
Type of gradingInternal examination
Criteria of assessmentThe criteria of assessment are stated in the Examination Policies and Procedures

Facts about the module

Danish titlePorteføljeteori og dens anvendelser
Module codeKAFIN20203
Module typeCourse
Duration1 semester
Language of instructionEnglish
Location of the lectureCampus Aalborg
Responsible for the module


Study BoardStudy Board of Economics and Business Administration
DepartmentAalborg University Business School
FacultyFaculty of Social Sciences and Humanities