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Theory of Finance

2021/2022
Учебный год
ENG
Обучение ведется на английском языке
3
Кредиты
Статус:
Курс обязательный
Когда читается:
2-й курс, 1 модуль

Преподаватели

Course Syllabus

Abstract

This is an introductory course on theory of finance. The course starts with discussing the basics terms such as the cashflows, TMV, and it progresses towards the more advanced topics. It also discusses empirical puzzles and recent theories that have been developed. After mastering this course, the students will gain substantial knowledge on the theory of finance and will be able to apply the same in solving real life problems.
Learning Objectives

Learning Objectives

  • To know theories of finance and their appropriate applications
  • To critically analyze the given problem and to derive comprehensive solutions for the given problem
  • To identify a problem and select appropriate models to solve it
  • To develop new models and apply them to solve problems in finance
Expected Learning Outcomes

Expected Learning Outcomes

  • To know basic financial concepts
  • To be able to apply key financial concepts to real life problems
  • Knowledge of finance theories and its appropriate applications
  • Identifying problem and appropriate model selections
  • Will be able to critically analyze the given problem and to derive comprehensive solutions for the given problem
Course Contents

Course Contents

  • Introduction to Financial Markets and Institutions
    The structure of financial system, key players and their functions.
  • Discounting & NPV
  • Valuation: Stocks & Bonds
  • Introduction to Risk & Returns
  • The Theory of Derivatives
  • Portfolio Theory & CAPM
  • Market Efficiency
Assessment Elements

Assessment Elements

  • non-blocking Group Project
    Project may be held in form of either PPT on a given topic/case presented by a team of 5-6 students* during the seminar. *The number of students in a team depends on the number of students in a seminar group. This requirement is to be determined after the course starts. Forming of teams is each student's responsibility. Being unable to work in a team as required may be a reason to fail the assignment. The list of team members must be sent to the tutor one week before the presentation. Any changes in teams made after the deadline must be validated by a serious reason.
  • non-blocking Final exam
    The test is provided online in LMS testing platform. You should be online 5 minutes before the official start of the exam. The students must be online during the whole period of the exam (80 minutes). If a student faces technical problems during the exam, they should notify the teacher immediately by email with a screenshot affirming the state of the problem. Being unable to give a notice and explain the problem may result in the fail of the test.
  • non-blocking Midterm exam
    The test is provided online in LMS testing platform. You should be online 5 minutes before the official start of the exam. The students must be online during the whole period of the exam (80 minutes). If a student faces technical problems during the exam, they should notify the teacher immediately by email with a screenshot affirming the state of the problem. Being unable to give a notice and explain the problem may result in the fail of the test.
Interim Assessment

Interim Assessment

  • Interim assessment (1 module)
    0.5 * Final exam + 0.2 * Group Project + 0.3 * Midterm exam
Bibliography

Bibliography

Recommended Core Bibliography

  • Brealey, R. A., & Allen, F. (2015). Principles of corporate finance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BEEE7487
  • Brealey, R. A., & Myers, S. C. (2012). Principles of corporate finance. Slovenia, Europe: Irwin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BA880E76
  • FAMA, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. Journal of Finance (Wiley-Blackwell), 25(2), 383–417. https://doi.org/10.2307/2325486
  • Fama, E. F. (1991). Efficient Capital Markets: II. Journal of Finance, (5), 1575. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.bla.jfinan.v46y1991i5p1575.617

Recommended Additional Bibliography

  • MARKOWITZ, H. (1952). Portfolio Selection. Journal of Finance (Wiley-Blackwell), 7(1), 77–91. https://doi.org/10.2307/2975974
  • Markowitz, H. M. (1991). Foundations of Portfolio Theory. Journal of Finance (Wiley-Blackwell), 46(2), 469–477. https://doi.org/10.1111/j.1540-6261.1991.tb02669.x
  • Rita Biswas, & Michael Michaelides. (2019). Essays in Financial Economics. Bingley: Emerald Publishing Limited. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=2181120