- Mathematics for Economics I - Mathematics for Economics II

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.

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

Learning activities comprise: 1.- Theory - 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. 3.- Exercises - Sessions. The instructor of these sessions solves the exercise sets provided to the students.