2022/2023

Personal Finance and Finance Math

Type: Minor

Delivered by: Department of Finance

Where: St.Petersburg School of Economics and Management

When: 1, 2 module

Open to: students of all HSE University campuses

Instructors: Vasilisa A. Makarova

Language: English

ECTS credits: 5

Contact hours: 60

Course Syllabus

Abstract

The basic objective of this foundation course in finance is to summarize the fundamental theoretical aspects of finance relevant to the future study of finance and application within the scope of your master’s degree Essentially the course is an introduction to the theory and practice theory of modern financial economics and financial management, with a focus on capital markets and investments, and quantitative finance. Students will acquire basic financial calculation skills, learn how to estimate asset values and returns, acquire skills in applying scenario analysis and sensitivity analysis, and using Monte Carlo simulations to predict investment returns.

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 is familiar with empirical evidence, which support or reject hypothesis and predictions of a theory, able to critically evaluate current research in this field.
• 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 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, which theory is applicable in these circumstances and what are its practical limits.

Course Contents

• The financial system, financial markets, the modern theory of finance
• Macro, micro factors that determine the financial environment
• Financial information and financial assets
• Financial mathematics and bases of financial calculations
• Hypothesis of an effective market and operations in an imperfect market
• Individual financial reporting. The financial analysis.
• Financial planning
• Investments and performance evaluations
• Financial strategy
• Housing economics
• Personal risk management
• Valuation of financial assets

Assessment Elements

• Online project
  A set of sequential tasks required to prepare the final presentation.
• Final project
  Presentation of the results of solving individual problems on the example of any selected company.
• Final test
  A test task of 40 questions on all topics covered.

Interim Assessment

• 2022/2023 2nd module
  0.5*HW+0.3*Project+0.2*Exam

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