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Regular version of the site
Bachelor 2023/2024

Financial Economics

Type: Elective course (Economics)
Area of studies: Economics
Delivered by: School of Finance
When: 3 year, 1, 2 module
Mode of studies: distance learning
Online hours: 28
Open to: students of one campus
Instructors: Victoria V. Dobrynskaya, Nikita Pirogov, Veronika Vinogradova
Language: English
ECTS credits: 6
Contact hours: 36

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.
Learning Objectives

Learning Objectives

  • The aim of the course is to familiarize students with various financial instruments, financial markets and basic principles of asset pricing and risk management. Students will learn financial terminology in English and Russian. Students will know how to form and diversify portfolios of assets, how to find expected returns and risks of assets and portfolios of assets. Students will be able to find fair prices of financial assets and make investment decisions. Students will know the notion of risk premium and models characterizing equilibrium risk premiums. They will be familiar with the most popular risk factors, types of arbitrage and speculation strategies, asset-pricing anomalies.
Expected Learning Outcomes

Expected Learning Outcomes

  • Apply up-to-date research techniques in economics and finance
  • Know basic principles of finance and asset pricing
  • Be able to evaluate financial assets and form portfolios of assets
  • Know the basic principles of diversification, speculation, arbitrage and hedging.
  • Learn how to conduct empirical research in asset pricing
Course Contents

Course Contents

  • Full syllabus
Assessment Elements

Assessment Elements

  • non-blocking Quizzes
    Quizzes are short tests with multiple-choice and open-ended questions.
  • non-blocking Mid-term test
    The test consists of 3 open-ended problems which students are expected to solve.
  • non-blocking Final test
Interim Assessment

Interim Assessment

  • 2023/2024 2nd module
    0.6 * Final test + 0.25 * Mid-term test + 0.075 * Quizzes + 0.075 * Quizzes
Bibliography

Bibliography

Recommended Core Bibliography

  • Brealey, R. A., & Allen, F. (2015). Principles of corporate finance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BEEE7487
  • Brealey, R. A., & Myers, S. C. (2012). Principles of corporate finance. Slovenia, Europe: Irwin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BA880E76
  • Brealey, R. A., & Myers, S. C. (2012). Principles of corporate finance. Slovenia, Europe: Irwin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.CC4D54D7
  • Financial markets and corporate strategy, Grinblatt, M., 2002
  • Principles of corporate finance, , 2023
  • Principles of corporate finance, Brealey, R. A., 2011
  • Principles of corporate finance, Brealey, R. A., 2017
  • Principles of corporate finance, Brealey, R. A., 2020
  • Richard Brealey, Stewart Myers, & Franklin Allen. (2020). ISE EBook Online Access for Principles of Corporate Finance: Vol. Thirteenth edition. McGraw-Hill Education.

Recommended Additional Bibliography

  • Financial markets and corporate strategy, Grinblatt, M., 2004