Market Instruments: Equity and Fixed Income
- The goal of the course is to give the attendees the general notion of equity market’s main concepts and segments, of the risks of investing in stocks and methods of determining fair value, as well as discuss main questions of modern finance theory.
- The attendees of the course will obtain the skills necessary for fundamental valuation of stocks (analysis of cash flows, company, industry) and for risk estimation, especially in marginal cases.
- a. Description of stock instruments, market structure, participants.
- b. Risk and Return: measures, classic approaches, failures to look out for.
- c. Diversification, Markowitz model. Efficient Markets Hypothesis.
- d. CAPM model. CML, SML, beta. Application.
- e. Fundamental approach to stock valuation and investment: Graham, Buffett. Practical recommendations.
- f. Inefficient markets: Taleb, Mandelbrot critique. Limitations of classic risk measures.
- g. Behavioral finance: types of psychology-induced mistakes, ways to mitigate them in investment process.
- examThe exam is conducted in a form of a multiple-choice test on a LMS platform. The exam will take 1:30 at the date of the last class on June 23rd. Students should join a Zoom class 5 minutes before the beginning. They will be given final clarifications, if needed. While students pass test they should remain connected to Zoom. The students will be allowed to use slides from the lectures. They will need to have either CFA-eligible calculators or Excel in front of them to be able to solve quantitative tasks. There will be a time limit, set by LMS system to pass the whole test, but there will be no time limit for each particular question.
- Credit report
- Interim assessment (4 module)Final grade for the course “Market Instruments: Equity and Fixed Income” is counted as follows: Part Final grade «Market Instrument: EQUITY MARKET» 50% Mid-term exam result «Market Instrument: FIXED INCOME» 50% Mid-term exam result
- The effects of bail-ins on bail-out expectations in the European Banking sector. (2017). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.30B169AA
- Hiroyuki Ito, & Masahiro Kawai. (2018). Quantity and Quality Measures of Financial Development: Implications for Macroeconomic Performance. Public Policy Review, (5), 803. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.mof.journl.ppr14.05.01
- Tomohiro Hirano, & Noriyuki Yanagawa. (2010). Financial Institution, Asset Bubbles and Economic Performance. CARF F-Series. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.cfi.fseres.cf234