2023/2024
Theory of Finance
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type:
Mago-Lego
Delivered by:
Department of Finance
When:
1, 2 module
Open to:
students of all HSE University campuses
Instructors:
Vasilisa A. Makarova
Language:
English
ECTS credits:
6
Contact hours:
56
Course Syllabus
Abstract
Essentially the course is an introduction to the theory and practice theory of modern financial economics and financial management, with a focus on capital markets and investments, and quantitative finance. It will introduce you to, or help you revise, the basic fundamentals – the most important concepts and analytical tools used in financial decision making, the important role of financial markets in finance, the basic principles of valuation, investing capital in investment opportunities to create value, the meaning and management of risk, and how organizations should raise and invest capital. The course consists of lectures (28 hours) and seminars (28 hours). The seminars involve student presentations (individually or in small groups) of contemporary research on financial system, Theory of Change in finance, corporate and public finance, financial management published in leading economics and finance journals. For each topic, a list of suggested articles is provided by the instructor.
Learning Objectives
- 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
Expected Learning Outcomes
- 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
Course Contents
- 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.
