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Theory of Finance

2022/2023
Учебный год
ENG
Обучение ведется на английском языке
3
Кредиты
Статус:
Курс по выбору
Когда читается:
2-й курс, 3 модуль

Преподаватели

Course Syllabus

Abstract

It is an introductory course to the theory of finance. The course starts with discussing the basics terms such as the cashflows, NPV, and progresses towards more advanced topics. It also discusses empirical puzzles and practical applications of the financial concepts. After mastering this course, the students will gain initial knowledge on the theory of finance and will be able to apply it in solving some simple 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
Expected Learning Outcomes

Expected Learning Outcomes

  • To know basic financial concepts
  • To build financial models of the projects and firms
  • To identify appropriate models to address business problems
Course Contents

Course Contents

  • Introduction
  • Financial Mathematics
  • Valuation of Bonds
  • Valuation of Common Stocks
  • Introduction to Risk and Return Trade off
  • Portfolio theory and CAPM
  • Cost of capital
Assessment Elements

Assessment Elements

  • non-blocking Minor test 1
    Smaller test to estimate the knowledge of the topics covered in the several previous classes. It is conducted online using SmartLMS system.
  • non-blocking Minor test 2
  • non-blocking Minor test 3
  • non-blocking Major test
    The objective of the test is to estimate the knowledge of the topics covered during the first 5-6 weeks of the course. It is conducted online using SmartLMS system.
  • non-blocking Home work
    The individual assignment designed to let students apply knowledge they gained on the course to solve real world financial problem. It will be conducted in MS Excel spreadsheet and collected through SmartLMS. The detailed instructions will be provided to the students during the course.
  • non-blocking Final exam
    The final exam is a test with questions that cover the entire course. It is conducted online using SmartLMS system.
Interim Assessment

Interim Assessment

  • 2022/2023 3rd module
    0.25 * Major test + 0.4 * Final exam + 0.04 * Minor test 3 + 0.25 * Home work + 0.03 * Minor test 2 + 0.03 * Minor test 1
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
  • Richard Brealey, Stewart Myers, & Franklin Allen. (2020). ISE EBook Online Access for Principles of Corporate Finance: Vol. Thirteenth edition. McGraw-Hill Education.

Recommended Additional Bibliography

  • International finance, Pilbeam, K., 2013
  • 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