Checking date: 23/04/2024


Course: 2024/2025

Financial Economics
(13648)
Dual Bachelor in International Estudies and Econmics (Study Plan 2018) (Plan: 417 - Estudio: 328)


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)
- Mathematics for Economics I - Mathematics for Economics II
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
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 and methodology
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.
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Calendar of Continuous assessment
Extraordinary call: regulations
Basic Bibliography
  • Brealey, Myers and Allen . Principles of Corporate Finance 12/e. McGraw-Hill,. 2017
  • Zvi Bodie, Alex Kane, and Alan J. Marcus. Essentials of Investments, 10th Edition. McGraw-Hill Irwin. 2017
Additional Bibliography
  • Mark Grinblatt and Sheridan Titman. Financial Markets and Corporate Strategy. McGraw-Hill. 2011
  • Ross, Westerfield and Jordan . Essentials of Corporate Finance, 8/e. McGraw-Hill-Irwin. 2013
Detailed subject contents or complementary information about assessment system of B.T.

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


More information: https://sites.google.com/site/pjserran/