Schedule, syllabus and examination date

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Course content

Topics include

  • Individual decision-making under uncertainty, in particular expected utility and the mean-variance criterion.
  • Portfolio choice and separation.
  • Capital asset pricing models (also without riskless asset) and complete markets for state contingent claims, spanning, consequences for investment decisions.
  • Market efficiency, information Paradox.
  • Theory of pricing of derivative assets, such as forward and futures contracts and in particular options.

Learning outcome


You should know

  • the basic theory of portfolio choice and different equilibrium models for financial markets under one-period uncertainty
  • when, how, and to what extent the models are applicable
  • some elements of empirical research in the field
  • implications of the theory for capital budgeting and financing decisions in the private sector
  • the basics of absence-of-arbitrage pricing models applied to financial options which include binomial trees in discrete time as well as diffusions in continuous time.


You should be able to

  • use the various measures of risk for individual assets and for portfolios which includes what sources can be used to estimate these, how they are calculated, and how they are affected by, e.g., combining assets
  • disentangle information about real-world assets, e.g., financial assets (and loans), to find the relevant measures of risk and expected returns
  • introduce relevant concepts of risk both in theoretical and practical considerations


You should

  • be able to read and understand project reports and journal articles that make use of the concepts and methods that are introduced in the course
  • be able to make use of the course content in your own academic work, for example in analyses that are part of the master’s thesis


Students admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.

Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunnsøkonomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.


Formal prerequisite knowledge

You must fulfill one of these prerequisites:

Recommended previous knowledge


Lectures and seminars.


A 3-hour written school exam.

You must have passed the mandatory activities in order to sit for the exam. 

Previous exams

Exam papers with comments from examiner

Digital examination

The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.

Read more about written examinations using Inspera.

Examination support material

Students may use dictionaries at this exam. Dictionaries must be handed in before the examination. Please read regulations for dictionaries permitted at the examination.

Language of examination

The examination text is given in English.You may submit your response in Norwegian, Swedish, Danish or English.

Grading scale

Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.

Explanations and appeals

Resit an examination

If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.

See also our information about resitting an exam.

Withdrawal from an examination

It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.

Special examination arrangements

Application form, deadline and requirements for special examination arrangements.


The course is subject to continuous evaluation. At regular intervals we also ask students to participate in a more comprehensive evaluation.

Facts about this course






Every spring


Every spring

Teaching language