Delivered at:: Department of Finance

Course type:: Compulsory course

When:: 2 year, 1, 2 module

Instructors

Kambaralieva, Kasiet

Krakovich, Victor

Lodiagin, Boris

Full Syllabus Ask Question

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

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

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

Course Contents

Introduction
Time value of money
Interest rates
Investment Decisions
Fundamentals of Capital Budgeting
Bonds
Stocks
Portfolio Theory
Capital Asset Pricing Model
Cost of Capital
Investor Behavior and Capital Market Efficiency
Capital structure
Introduction to Derivatives
International Finance

Assessment Elements

Lecture quizzes
Seminar activities
Seminar participation. For each seminar student gets ether "+" or "-". "+" means tha the student attend the seminar, actively participate in it and work on the assignments. Otherwise, student gets "-" for this seminar.
Interim test
Exam
Midterm
Lecture quizzes

Interim Assessment

2026/2027 2nd module
0.05 * Seminar activities + 0.05 * Lecture quizzes + 0.05 * Lecture quizzes + 0.25 * Midterm + 0.25 * Exam + 0.15 * Interim test

Bibliography

Recommended Core Bibliography

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

Authors

KRAKOVICH VIKTOR VALEREVICH
Soloveva Ekaterina Evgenevna

Bachelor’s Programme 'International Programme in Business and Economics'

Contacts:

Theory of Finance