Theory of Finance
- Developing basic economic and financial analysis skills to make reasonable investment decisions and conduct fundamental research in finance.
- Introduction to the most common asset pricing models used by academic researchers and financial market analysts to determine the fair value of various financial instruments.
- Understanding the key assumptions and limitations of these models in order to apply them correctly.
- Apply basic financial models, understand their features and limitations;
- Be able to identify economic problems when analyzing specific types of financial instruments, evaluate the expected results;
- Know how to use various information and data sources to analyze and process data for economic and financial estimations;
- Make efficient investment decisions in uncertainty;
- Obtain practical experience in applying and testing the validity of asset pricing models using real quantitative data;
- Introduction to financial markets
- Essentials of financial calculations
- Bond pricing
- Equity pricing
- Risk and return
- Portfolio theory
- Capital asset pricing model (CAPM)
- Factor models and Arbitrage pricing theory (APT)
- Empirical multifactor models
- Forward and futures pricing
- Option pricing
- Information and market efficiency
- Alexander, G. J., Sharpe, W. F., & Bailey, J. V. (2012). Fundamentals of investments. Slovenia, Europe: Prentice Hall. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.C1BEBDC4
- Elton, E. J. (2014). Modern Portfolio Theory and Investment Analysis (Vol. Ninth edition). Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639379
- Mishkin, F. S., & Eakins, S. (2016). Financial Markets and Institutions, Global Edition (Vol. Eighth edition, Global edition). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419018
- Valdez, S., & Molyneux, P. (2015). An Introduction to Global Financial Markets: Vol. 8th ed. Palgrave Macmillan.