Empirical Finance


Content, progress and pedagogy of the module

This module applies statistical and econometric methods to analyse observed prices and returns in the financial markets. This includes, for example, the estimation of expected returns on stocks, bonds and foreign exchange, tests of return predictability, the modeling of risk and risk-premia, and the determination of stock prices based on economic fundamentals.

The aim of the module is initially to provide the student with tools necessary to conduct advanced empirical studies of financial market data and to contribute to a deep understanding of the determinants of financial asset prices and returns.

Learning objectives


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

  • and insights in the theories, concepts, methods and models within statistical methods for financial data.
  • and solid understanding of statistical and econometric methods applied to financial prices and returns.
  • explaining and exemplifying 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:

  • handling how knowledge in the theoretical frame of reference of the subject area makes it possible to analyse prices and returns in financial markets using statistical methods.
  • analysing results regarding their validity, relevance, and limitation with the purpose of deducing a basis for a decision and conclusion regarding the particular financial problem based on the conducted analyses and calculations.
  • applying and integrating the skills and knowledge in companies, financial institutions 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 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 to independently perform and justify the choice of theories and methods to analyse financial assets.
  • analysing prices and returns of financial assets using appropriate statistical and econometric techniques.

Type of instruction

For information see §17.



Name of examEmpirical Finance
Type of exam
Written or oral exam
Individual examination.
Assessment7-point grading scale
Type of gradingInternal examination
Criteria of assessmentThe criteria of assessment are stated in the Examination Policies and Procedures

Facts about the module

Danish titleEmpirisk finansiering
Module codeKAFIN20207
Module typeCourse
Duration1 semester
Language of instructionEnglish
Location of the lectureCampus Aalborg
Responsible for the module


Education ownerMaster of Science (MSc) in Economics and Business Administration
Study BoardStudy Board of Economics and Business Administration
DepartmentAalborg University Business School
FacultyFaculty of Social Sciences and Humanities