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Regular version of the site

Theory of Finance

2021/2022
Academic Year
ENG
Instruction in English
3
ECTS credits
Course type:
Compulsory course
When:
2 year, 1 module

Instructors


Dalal, Adel


Rogova, Elena

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 to Financial Markets and Institutions
  • Discounting & NPV
  • Valuation of Bonds
  • Introduction to Risk and Return Trade off
  • The Theory of Derivatives
  • Portfolio theory and 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

  • 2021/2022 1st module
    0.5 * Final exam + 0.3 * Midterm exam + 0.2 * Group Project
Bibliography

Bibliography

Recommended Additional Bibliography

  • MARKOWITZ, H. (1952). Portfolio Selection. Journal of Finance (Wiley-Blackwell), 7(1), 77–91. https://doi.org/10.2307/2975974

Authors

  • DALAL ADEL -
  • ROGOVA ELENA MOISEEVNA