Delivered at:: HSE Banking Institute

Course type:: Compulsory course

When:: 1 year, 3, 4 module

Instructor

Debelov, Aleksey

Full Syllabus

Abstract

Equity market is a specialized course aiming to give the attendees the general notion of equity market’s main concepts as well as main questions of modern finance theory. The course is in line with Chartered Financial Analyst (CFA) programme material Level 1 and 2 and equity market courses of leading US MBA programmes. The course is important for any manager or specialist working with financial instruments, providing practical knowledge of risks and returns. It is also useful for private investors, helping build adequate strategy and comprehend the risks. For CFA students the program provides a compact review of material from Securities Markets chapters. Besides classic finance theory, the course devotes attention to behavioral finance and other studies of financial markets inefficiency that gain appreciation in US and European finance programs. In module 4 the course is delivered as online course.

Learning Objectives

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.

Expected Learning Outcomes

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.

Course Contents

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.

Assessment Elements

exam
The 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.
tests
Credit report

Interim Assessment

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

Bibliography

Recommended Core Bibliography

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

Recommended Additional Bibliography

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

Master's Program 'Financial Analyst'

CONTACTS

Market Instruments: Equity and Fixed Income