Bachelor
2022/2023
Introduction to Finance
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Type:
Compulsory course (Management and Digital Innovation)
Area of studies:
Business Informatics
Delivered by:
Department of Financial Management
Where:
Graduate School of Business
When:
2 year, 2 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Чистотинова Вероника Андреевна,
Кестнер Ирина Владимировна
Language:
English
ECTS credits:
3
Contact hours:
28
Course Syllabus
Abstract
The course is an introductory one-semester course for second-year undergraduate students. The course is taught in English. The approach of the course is analytical and is devoted to principles of finance. It covers the essentials of capital budgeting and securities valuation, as well as basic asset pricing theories and the efficient market hypothesis.
Learning Objectives
- The course provides students with foundational analytical and institutional knowledge in banking and finance.
- The course emphasizes the key concepts of modern theory of finance such as the time value of money, the absence of arbitrage, the trade-off between risk and expected returns, the notion of diversifiable risk and its implications for asset pricing, and the different forms and tests of market efficiency. At the end of this part, students should be able to discuss the main theoretical and empirical drivers of financial and real asset valuation. Students are also expected to acquire general knowledge about financial system, standard financial assets and the risks they carry.
Expected Learning Outcomes
- - Apply the two - fund separation theorem as a prerequisite for asset pricing theories.
- - Be able to apply the models to piricng financial instruments.
- - Be able to demonstrate the understanding of key differences between the CAPM & APT models;
- - Be able to proceed with different project valuation techniques (NPV<, IRR< SPB, DPB) and understand key differences.
- - Be able to understand the concept of mean - variance frontier, investors' choice with & without risk - free asset;
- - Be able to use the concept of efficient markets including different forms of market efficiency and explanatory theories.
- At the end of this part, students should be able to discuss the main theoretical and empirical drivers of project appraisal techniques.
- Discuss why financial systems exist, and how they are structured
- Students are expected to acquire general knowledge about tradeoff between risk and return
- Students should be able to discuss the main theoretical and empirical drivers of stock valuation.
- Students should be able to discuss the main theoretical and empirical drivers of valuation of fixed income securities
- The notion of diversifiable risk and its implications for asset pricing
- Be able to perform valuation of bonds
- Learn different types of financial markets, intermediaries and instruments
- Be able to apply pricing formula for the stock price calculation.
Course Contents
- Introduction
- Financial markets and instruments
- Capital Budgeting and Valuation
- Valuation of Fixed-Income Securities
- Risk and return
- Asset pricing theories
- Stock valuation
- Efficient markets
Interim Assessment
- 2022/2023 2nd module0.15 * Classwork + 0.4 * Winter examination + 0.25 * Home assignment + 0.2 * Revision quiz
