The objective of this course is for the student to know the principles that govern the price formation process of both financial and real assets and to know and handle the basic techniques of asset valuation. To achieve this objective the student must acquire a series of knowledge, abilities and attitudes. In terms of knowledge, at the end of the course the student will be able to: -Synthesize the functioning of financial markets and understand the decisions faced by agents participating in these markets. -Understand the concepts of risk and profitability linked to the flows generated by the assets. -To apply the concept of the time value of money to calculate discounted values. -To know the different types of derivative assets and their usefulness for risk management. -To analyze the functioning of financial markets and discover the imperfections that hinder the practical application of valuation models and allow agents to obtain abnormal returns. In terms of capabilities, these can be classified into two groups, one of specific capabilities and the other of more generic capabilities or skills. As for the specific capabilities, at the end of the course the student will be able to: -Obtain information on prices, volumes and other relevant parameters for different assets and markets. -Estimate the expected profitability and the risk or volatility of any financial asset. -Selecting an investment portfolio in financial assets according to the investor's risk preferences. -Decide whether an investment project of an individual or a company should be carried out and calculate the wealth that such project will generate. As for the general capabilities or skills, during the course the following will be worked on: -The ability to solve complex problems. -The ability to search, communicate and discriminate which is the relevant information for a given decision. -The ability to apply multidisciplinary knowledge to the resolution of a given problem. -The ability to work in a team and distribute the workload to deal with complex problems. In terms of attitudes, the student should have the following attitudes after completing the course: -A critical attitude towards the functioning of financial markets that will allow him/her to discover opportunities for the creation of wealth. -A collaborative attitude that allows him/her to obtain from other agents the necessary information and knowledge to carry out complex tasks.

Topic 1 Introduction: Financial Markets Topic 2 The necessary tools: Financial Mathematics Topic 3 The value of an investment: Introduction to NPV Topic 4 Fixed Income Markets Topic 5 Characterisation of Financial Assets and Portfolios: Risk and return Topic 6 Investment management: Portfolio Theory Topic 7 The capital asset pricing model (CAPM) Topic 8 Derivative products

The teaching methodology will include: (1) Lectures, where the general knowledge that students must acquire will be presented. To facilitate their development, students will receive lecture notes and will have basic reference texts to study in order to reach the required level. (2) Resolution of exercises by the students that will serve to self-evaluate their knowledge and acquire the necessary skills. (3) Sharing of the answers to the exercises and joint correction that should serve to strengthen knowledge and develop the ability to analyze and communicate relevant information for problem solving. In addition, the sharing will favor the exchange of critical opinions both between teacher and students and among students. (4) Each teacher has hours assigned each week for individual tutorials with the students to clarify their doubts.