Master
2023/2024
Theory of Finance
Type:
Compulsory course (Master of Business Analytics)
Area of studies:
Finance and Credit
Delivered by:
Master's Programmes Curriculum Support
Where:
Faculty of Economic Sciences
When:
1 year, 1 module
Mode of studies:
distance learning
Online hours:
20
Open to:
students of one campus
Instructors:
Sergei Grishunin
Master’s programme:
Магистр аналитики бизнеса
Language:
English
ECTS credits:
3
Contact hours:
6
Course Syllabus
Abstract
Theory of Finance covers the basic principles and fundamental quantitative theories of pricing and valuation of various types of financial assets including stocks, bonds and derivatives. The contents of the course correspond to CFA Level 1. The course is a required core course of the online degree Master program “Business analytics and strategic business reporting” and is designed to ensure the basic professional competences of the master in the field of finance. Theory of Finance is necessary for the further study of more complicated financial courses, such as Corporate Finance, Financial Modelling and Risk Management.
Learning Objectives
- Developing basic economic and financial analysis skills to make reasonable investment decisions and conduct fundamental research in finance. Introduction to the most common asset pricing models used by academic researchers and financial market analysts to determine the fair value of various financial instruments. Understanding the key assumptions and limitations of these models in order to apply them correctly.
Expected Learning Outcomes
- - to obtain practical experience in applying and testing the validity of asset pricing models using real quantitative data; - to know how to use various information and data sources to analyze and process data for economic and financial estimations;
- - apply basic financial models, understand their features and limitations; - to make efficient investment decisions in uncertainty; - to be able to identify economic problems when analyzing specific types of financial instruments, evaluate the expected results;
Course Contents
- Introduction to financial markets
- Essentials of financial calculations
- Bond pricing
- Equity pricing
- Risk and return
- Portfolio theory
- Capital asset pricing model (CAPM)
- Factor models and Arbitrage pricing theory (APT)
- Empirical multifactor models
- Forward and futures pricing
- Option pricing
- Information and market efficiency
Bibliography
Recommended Core Bibliography
- Alexander, G. J., Sharpe, W. F., & Bailey, J. V. (2012). Fundamentals of investments. Slovenia, Europe: Prentice Hall. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.C1BEBDC4
Recommended Additional Bibliography
- Elton, E. J. (2014). Modern Portfolio Theory and Investment Analysis (Vol. Ninth edition). Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639379
- Mishkin, F. S., & Eakins, S. (2016). Financial Markets and Institutions, Global Edition (Vol. Eighth edition, Global edition). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419018
- Valdez, S., & Molyneux, P. (2015). An Introduction to Global Financial Markets: Vol. 8th ed. Palgrave Macmillan.