Master
2024/2025
Theory of Finance
Type:
Compulsory course (Strategic Corporate Finance)
Area of studies:
Finance and Credit
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
1 year, 3 module
Mode of studies:
distance learning
Online hours:
8
Open to:
students of all HSE University campuses
Master’s programme:
Strategic Corporate Finance
Language:
English
ECTS credits:
3
Contact hours:
40
Course Syllabus
Abstract
The aim of the course is to guide through the basic building blocks of classical finance and to discuss fundamentals of the capital markets theory in discrete time. The first lectures will be devoted to the bond markets. Then we will cover equity markets and pricing of the contingent claims. Afterwards we are going to consider mean-variance portfolio optimization, CAPM and APT models with empirical testing of those models.
The course assumes a sound command of calculus, linear algebra (matrix manupulation and etc.) and optimization (method of Lagrange multipliers). These topics will be used and it is highly recommended that students refresh their knowledge about them.
Multiple textbooks can be used to study for this course. References will be provided for each topic.