Личные финансы и основы финансовой математики

2019/2020

Статус: Майнор

Кто читает: Департамент финансов

Где читается: Санкт-Петербургская школа экономики и менеджмента

Когда читается: 1, 2 модуль

Преподаватели: Макарова Василиса Александровна

Язык: английский

Кредиты: 5

Контактные часы: 60

Full Syllabus

Abstract

The course consists of lectures (40 hours) and seminars (20hours). The seminars involve student presentations (individually or in small groups) of contemporary research on financial literacy, financial planning, welfare management,financial management published in leading economics and finance journals. For each topic, a list of suggested articles is provided by the instructor. Target audience includes following three groups: – future financiers, consultants and analysts; – future academics interested in behavioral and classic theory of finance field; – general audience that is interested in the complicated world of finance.

Learning Objectives

Main objective of the course of the course "Personal Finance and Financial Mathematics" is to prepare students for finance, financial analysis and planning, taking into account the impact of micro and macroeconomic factors, in providing a sufficient level of knowledge and skills that allows for conscious and effective decisions in various areas of personal management finance, such as savings, investment, real estate, insurance, tax and pension planning.

Expected Learning Outcomes

Student understands time value of money, patterns of financial decision making in increasing complexity of financial environment, knows mathematics of finance theory and methodology of financial decisions.
Student understands specific questions the theory addresses, understands that finance issues are not isolated from each other, knows how and when finance theory can be applied to achieve a desired goal.
Student understands, which theory is applicable in these circumstances and what are its practical limits.
Student is familiar with empirical evidence, which support or reject hypothesis and predictions of a theory, able to critically evaluate current research in this field.

Course Contents

The financial system, financial markets, the modern theory of finance
The functions of the financial markets. Structure and classification of financial markets (according to the type of financial instruments, according to the method of placement of financial instruments by maturity instruments, according to the method of organization of transactions). The international financial market, eurobonds, euro. International securities market. Financial intermediaries. The role of financial intermediation to ensure the effectiveness of economic development. Types of financial intermediaries. Regulation of the financial system.
Macro, micro factors that determine the financial environment
Personal circumstances that influence financial thinking, income needs and risk tolerance, wealth or asset accumulation. Systemic or “Macro” Factors That Affect Financial Thinking: business cycles, changes in the economy’s productivity, changes in the currency value, changes in other economic indicators
Financial information and financial assets
Commonly used financial statements are the income statement. Results for a period are shown on the income statement and the cash flow statement. The cash flow statement: operating (recurring), financing (nonrecurring), and investing (nonrecurring). The balance sheet lists assets, liabilities (debts), and net worth. Net worth = assets - debts. Bankruptcy and the negative net worth.
Financial mathematics and bases of financial calculations
Simple and compound interest. Effective rate. Banking and mathematical dis-assignment .. Applications of simple and compound interest. Models of accounts with variable capital. Commercial and actuarial rules for a binary model. Consolidated payments. Inflation accounting. Accounting for taxation of interest income Refinancing rate The notion of financial flow. Timing chart. Calculation of the value of the financial stream, which has the character of rent. Credit calculations. Repayment of debt by one payment at the end of the term. Repayment of debt in installments by differentiated and annuity payments. Long-term credit schemes. Calculation of the effective rate. Short-term credit schemes. Calculation of the effective rate
Hypothesis of an effective market and operations in an imperfect market
The theory of rational expectations, formal statements and practice. Transaction costs. Liquidity. Introduction to taxation. Fundamentals of federal taxes. Early taxation and tax expenses. Average and marginal tax rates. Dividends and taxes on capital gains. Non-taxable bonds and a marginal investor. Taxes in the NPV. Tax regulation. Inflation. Determination of the inflation rate. Real and nominal interest rates. Interest rates and inflation expectations.
Individual financial reporting. The financial analysis.
Common-Size Statements. Common-Size Income Statement. Common-Size Cash Flow Statement. Common-Size Balance Sheet. Ratio Analysis
Financial planning
Necessity of financial planning. Objects and subjects of financial planning. Contents and purpose of financial planning. Financial plan, its meaning and essence in the process of financial planning. Types of financial plans. Tasks of financial planning. The main objectives of financial planning. Stages of financial planning. Methods of financial planning.
Investments and performance evaluations
Applications and recommendations for budgeting (NPV) "Economics of Project Interaction". Final project selection rule Project pairs and external factors Comparison of projects with different indicators. Expected, typical and most likely scenarios. Future unforeseen circumstances and real options. option evaluation in a risk-neutral environment. Decision trees: one set of parameters Decision trees: one set of parameters The index of profitability. Internal rate of return (IRR) Payback period problem

Assessment Elements

Homework projects
The home assignments can be completed both individually and in groups (up to 5 participants).
In-class activities
The in-class participation covered the attendance and in-class activity.
Written assignment
Final exam
The final exam consists of questions for each topic of the course and lasts 80 minutes.

Interim Assessment

Interim assessment (2 module)
0.5 * Final exam + 0.15 * Homework projects + 0.1 * In-class activities + 0.25 * Written assignment

Bibliography

Recommended Core Bibliography

Alec N. Kercheval. (2012). Financial Economics: A Concise Introduction to Classical and Behavioral Finance, by T. Hens and M. O. Rieger. Quantitative Finance, (10), 1487. https://doi.org/10.1080/14697688.2012.695085

Recommended Additional Bibliography

Fabozzi, F. J., Modigliani, F., & Jones, F. J. (2014). Foundations of Financial Markets and Institutions: Pearson New International Edition (Vol. Fourth edition Fabozzi, Modigliani, Jones). Harlow, Essex: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1418493
Richards, T. (2014). Investing Psychology : The Effects of Behavioral Finance on Investment Choice and Bias. Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=759584

Course Syllabus