Asset pricing is the process of determining the fair value of financial assets. It involves using various financial theories and models to estimate the price of these assets based on factors like time discounting, future cash flows, interest rates, and risk. By analysing historical data, empirical asset pricing seeks to validate or refine theories about how prices are set, how risks are compensated, and how various factors influence asset prices. Ultimately, it aims to enhance our understanding of financial markets and improve investment strategies.
Key topics covered are:

• Efficient Markets and the Valuation of Assets
• The Capital Asset Pricing Model (CAPM)
• Empirical Validation of the CAPM
• The Arbitrage Pricing Theory
• Multi Factor Models and Anomalies
• Pricing of Alternative Asset Classes
• Predictability in Financial Markets

• Lectures
• Asset pricing exercises
• Asset pricing project
• Short paper presentation

After successful completion of the course, students will
Professional competence

• understand cornerstones of asset pricing theory.
• apply crucial empirical methods to validate or challenge the fundamental theory.
• understand the concepts of market efficiency, risk factors, and the impact of investor behaviour on asset prices.
• evaluate the correct pricing of assets.
• recognize the challenges of outperforming the market.

Methodological competence

• estimate and evaluate expected returns.
• apply empirical asset pricing methods to realistic scenarios in R.
• evaluate a model’s asset pricing performance.

Social competence

• collaborate effectively in an asset pricing project.
• develop and enhance presentation skills.

Short paper presentation (10%), Written exam (60%), Empirical asset pricing project (30%); Attendance is mandatory (80%)

This optional module allows for various kinds of research studies. It is closely connected to the five units of the Liechtenstein School of Architecture and is usually part of ongoing research projects. The supervision consists of directing the students towards clear results within a given field of research. The individual study is reviewed within the respective unit.

Urbanism, Architecture & Society Unit:
This Independent Study is part of the Erasmus+ project “Socio-Eco-Hoods” and supports the preparatory work for participatory activities in the Liechtenstein work package. It centers on stakeholder mapping in the Mühleholz/Ebenholz neighborhood, aiming to identify and analyze key actors that shape spatial and social developments.Students will map associations, community initiatives, municipal organizations, or informal networks to understand their roles, interests, and interrelations—and reflect on the role the University could play in neighborhood development. Methods may include semi-structured interviews, stakeholder analysis, and visual mapping techniques. The outcome will be a clear and usable overview of the local actor landscape, supporting future collaboration, co-creation, and public engagement in the design studio and workshops. This study provides a useful tool to situate the university within the neighborhood and enhances students’ skills in actor analysis for design and participation processes.

ASSESSMENT Written Assignment (20,000 to approx. 30,000 characters (incl. spaces)) and Oral Presentation

Self-defined design or research studies, developed individually or in groups agreed upon with research units and under the guidance of mentors. The size of the module is determined by the respective unit.

After successful completion of the course, students will be able to

Minimum 75% compulsory attendance, regular meetings with instructors, continuous assessment, portfolio and final review.
The final grade is calculated according to the weighting of the following components: final submission (80%) and oral presentation (20%).

Individual appointments will be set with the tutor.

You can register for this independent study alone or in a group. For registration and enrolment, please get in touch with Johannes Herburger: johannes.herburger@uni.li or Cornelia Faisst: cornelia.faisst@uni.li