Theory of Finance
- The basic objective of this foundation course in finance is to summarize the fundamental theoretical aspects of finance relevant to the future study of finance and application within the scope of your master’s degree.
- Acquire knowledge in the field of finance theory, decision-making skills in various areas of financial science.
- Acquire the skills of empirical analysis in the field of finance
- Learn about the source of authentic financial and business data
- Learn about main properties of bonds
- Learn about the mean-variance portfolio composition
- Understand CAPM
- Understand main concepts behind pricing and hedging financial derivatives
- Understanding the main concepts behind counterparty credit risks
- Topic 1. Financial market: theory and practice. the macroeconomical approach.
- Topic 2. Market efficiency and its implications for Macroeconomic Behaviour
- Topic 3. Mean-Variance theory. Expected utility approach.
- Topic 4. Alternative measures to mean-variance
- Topic 5. Introduction to financial crisis theory. Financial risk management
- Topic 6. Advanced Topics in finance.
- Topic 7. Theory for Financial Decisions
- Topic 8. The interest rate theory
- Topic 9. Bond Prices and Yields
- Topic 10.
- In-class activities
- Written assignment
- Final ExaminationThe midterm test will take a form of 2 hours (80 min) test of 40 open-ended questions in the LMS environment. The student is exempt from the exam if he has completed all the projects of the course.