Checking date: 01/06/2023


Course: 2023/2024

Financial Economics
(17641)
Bachelor in Management and Technology (2020 Study Plan) (Plan: 393 - Estudio: 351)


Coordinating teacher: SERRANO JIMENEZ, PEDRO JOSE

Department assigned to the subject: Business Administration Department

Type: Compulsory
ECTS Credits: 6.0 ECTS

Course:
Semester:




Requirements (Subjects that are assumed to be known)
Financial Mathematics
Objectives
At the end of the course students should be able to: - Compute present and future values of cash-flow streams to compute the net present values of different real and financial investments. - Have a basic knowledge of the functioning of financial markets and of the way in which investment decisions are made. - Understand the risk-return tradeoff. Understand how diversification affects risk. - Have a clear understanding of the difference between systematic and diversifiable risk and know how to measure each. - Understand how interest rates are set and the principles of valuation of fixed income securities. - Know the basic types of derivatives and understand why and how they are used in risk management.
Skills and learning outcomes
Description of contents: programme
Financial Economics -1. Introduction to Financial Markets -2. Financial Mathematics -3. Investment Appraisal -4. Risk and Return -5. Portfolio Theory -6. The Capital Asset Pricing Model (CAPM) -7. Fixed Income Securities -8. Derivatives Products Reference text books: - Bodie Zvi, Kane Alex, Marcus Alan (2005), Essentials of Investments, McGraw Hill (Sixth Edition). - Brealey R., S. C. Myers and F. Allen (2006), Principles of Corporate Finance, 8th edition, McGraw Hill. Other useful books: - Bodie, Z., Kane, A. and Marcus, A. J. (1999), Investments, McGraw Hill (Fouth Edition). - Grinblatt, M. and S. Titman (2003), Financial Markets and Corporate Strategy, McGraw Hill.
Learning activities and methodology
Learning activities in year 2020/2021 str based on a bimodal system: lectures will be given on an online basis, onsite teaching when it comes to the reduced groups. 1.- Theory (online)- Sessions. The instructor of the course teach the basic concepts of the topic. Classnotes are provided to the students. 2.- Solution to exercises. The student must solve the test to assess his/her degree of knowledge of the different concepts. This part comprises the individual work of the student at home. 3.- Exercises - Sessions (onsite). The instructor of these sessions solves the exercise sets provided to the students.
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40
Calendar of Continuous assessment
Basic Bibliography
  • José M. Marín; Gonzalo Rubio. Economía Financiera. Antoni Bosch. 2011
  • Mark Grinblatt; Sheridan Titman. Financial Markets and Corporate Strategy. McGraw-Hill Education ¿ Europe. 2011
Additional Bibliography
  • Bodie Zvi, Kane Alex, Marcus Alan. Essentials of Investments, 6th Edition. McGraw Hill. 2005
  • Brealey R., S. C. Myers and F. Allen. Principles of Corporate Finance, 8th Edition. McGraw Hill. 2006

The course syllabus may change due academic events or other reasons.