2023/2024
Financial math and principles of investments
Type:
Minor
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:
5
Contact hours:
60
Course Syllabus
Abstract
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 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, fundamentals of risk management
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 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 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, fundamentals of risk management
Expected Learning Outcomes
- A student understands time value of money, patterns of financial decision making in increasing complexity of financial environment. To know mathematics of finance theory and methodology of financial decisions.
- A student understands specific questions the theory addresses. Understand that finance issues are not isolated from each other. To know how and when finance theory can be applied to achieve a desired goal.
- A student understands which theory is applicable in these circumstances and what are its practical limits. To be familiar with empirical evidence which support or reject hypothesis and predictions of a theory. Be able to critically evaluate current research in this field
Course Contents
- Topic 1. Financial mathematics - the basis of quantitative analysis financial transactions
- Topic 2. Compounding and discounting simple interest rate
- Topic 3. Derivative interest calculations. Yield curve
- Topic 4 Financial rents. Variable and continuous rents. Rent conversion
- Topic 5. Long-term debt planning
- Topic 6. Expected return
- Topic 7 . Real investments. Economic efficiency of investment
- Topic 8 Risk and diversification
- Topic 9. Bonds
- Topic 10. Lease
- Topic 11. Insurance annuities
- Topic 12. Budgets
- Topic 13: Business costs
- Topic 14: Financial statements and ratios
Interim Assessment
- 2023/2024 2nd module0.25 * Homework + 0.25 * Homework + 0.25 * Practice work + 0.25 * Practice work
Bibliography
Recommended Core Bibliography
- Fabozzi, F. J., Modigliani, F., & Jones, F. J. (2014). Foundations of Financial Markets and Institutions: Pearson New International Edition (Vol. Fourth edition Fabozzi, Modigliani, Jones). Harlow, Essex: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1418493
- Mishkin, F. S. (2016). The Economics of Money, Banking and Financial Markets, Global Edition (Vol. Eleventh edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419607
Recommended Additional Bibliography
- Cuthbertson, K., & Nitzsche, D. (2004). Quantitative Financial Economics : Stocks, Bonds and Foreign Exchange (Vol. 2nd ed). Chichester, England: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=130854