Financial Economics

2022/2023

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered at:

School of Finance

Course type:

Elective course

When:

4 year, 1, 2 module

Instructors

Verem, Irina Y.

Dobrynskaya, Victoria V.

Pirogov, Nikita

Course Syllabus

Abstract

This is an introductory course in Finance which covers the basic principles of financial markets and asset pricing. We will discuss different financial instruments and how to use them for investment or hedging purposes. We will proceed to the basics of asset valuation. The starting point will be the present value formula. We will then talk about fixed-income securities, their valuation and the term structure of interest rates. The course will then move to stocks, starting with portfolio theory and then deriving the relation between risk and return. We will study the main asset-pricing models: the CAPM and the APT. We will talk about empirical multifactor models and various risk factors. Then, we will turn to derivatives, their replication and valuation based on no-arbitrage principle, and the use of them for hedging purposes. Finally, we will talk about cryptocurrencies and non-fungible tokens as alternative investment assets and their valuation. The course has a blended format and consists of online and offline lectures and classes.