Theory of Finance

2024/2025

Academic Year

ENG

Instruction in English

5

ECTS credits

Delivered at:

Department of Finance

Course type:

Compulsory course

When:

2 year, 3, 4 module

Instructors

Казанский Александр Вячеславович

Krakovich, Victor

Lodiagin, Boris

Хованский Сергей Константинович

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

• 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
• Financial Mathematics 1
• Financial Mathematics 2
• Investment Decisions
• Valuation of Bonds
• Valuation of Common Stocks
• Portfolio Theory
• Capital Asset Pricing Model
• Current trends in Finance
• Banking system and regulators
• Banking Finance 1
• Banking Finance
• Derivatives: forwards+futures
• Derivatives: options
• Stock Market Infrastructure: Professional Participants and Their Licensing
• Personal Financial Planning
• Analysis of financial instruments
• Financial Institutions

Assessment Elements

• Test1
• Midterm
• Lecture quizzes
• Lecture quizzes
• Project
• Test2
• Exam

Interim Assessment

• 2024/2025 4th module
  0.2 * Exam + 0.05 * Lecture quizzes + 0.05 * Lecture quizzes + 0.3 * Midterm + 0.1 * Project + 0.2 * Test1 + 0.1 * Test2

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