Кто читает:: Банковский институт

Статус:: Курс обязательный

Когда читается:: 1-й курс, 4 модуль

Преподаватель

Авалян Хачатур Леваевич

Full Syllabus

Abstract

FX Market is the largest part of the financial market. On the daily basis the turnover exceeds several trillion USD. It is very important to predict exchange rates; hedge FX exposure, develop strategy for hedging and arbitrage. 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) program material Level 1 and 2 and equity market courses of leading US MA programs. 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. This course is designed to introduce to students the fundamental issues of the financial markets particularly make them familiar with debt securities. The course focuses on both theoretical issues as well as practical assignments. Additionally, it covers main features and peculiarities of Russian bond market.

Learning Objectives

a. The course aims to provide essential knowledge on the functions and characteristics of an effective financial system and its constituent components as well as basic terminology related to trading activities. The course will provide an overview of different market indexes and their purposes, index construction methods with their respective advantages and limitations. Students will learn the definitions of market efficiency, the efficient market hypothesis, market anomalies and their types, and be subsequently introduced to the notion of behavioral finance. The course will provide overview of the approaches to industry classification, industry competitive analysis utilizing Porter's Five Forces framework and furnish students with essential equity valuation tools and approaches such as present value models, Gordon Growth Model (GGM), various multiplier models such as P/E, P/S, P/B, P/CF and EV/EBITDA and asset-based valuation models.

Expected Learning Outcomes

Describe the purposes, functions of the financial system and the related terminology of various assets and markets
Understand the concept of purchasing stock on margin and be able to calculate the return on an investment using margin
Explain market and limit orders as well as describe quote-driven, order-driven, and brokered markets
Understand security market indexes, their calculation, uses and relevant peculiarities
Describe various forms of market efficiency and related concepts
Describe market anomalies and potential relevance behavioral of finance to understanding those anomalies
Dеscribe various forms of market efficiency and related concepts
Dеscribe market anomalies and potential relevance behavioral of finance to understanding those anomalies
Describe three equity valuation models and their applications
Explain the rationale for using present value models to value equity and describe the dividend discount and free-cash-flow-to-equity models
Understand asset-based valuation models, their advantages and limitations and applicability in estimating equity value
Describe enterprise value multiples, their applicability and use in estimating equity value
Describe functions of and participants in the foreign exchange market and FX quotations
Distinguish between nominal and real exchange rates and spot and forward exchange rates

Course Contents

Market organization and structure
Security Market Indexes and Market Efficiency
Overview of equity securities and industry analysis
Equity valuation: concepts and basic tools I
Equity Valuation: concepts and basic tools II
Currency exchange rates
Fixed income securities
Fixed Income: Valuation
Interest Rate and Credit Risk
Exam

Assessment Elements

Graded Test 1
Graded Test 2
Graded Test 3
Graded Test 4
Graded Test 5
Graded Test 6
Graded Test 7
Graded Test 8
Graded Test 9
Exam Test

Interim Assessment

2023/2024 4th module
0.73 * Exam Test + 0.03 * Graded Test 1 + 0.03 * Graded Test 2 + 0.03 * Graded Test 3 + 0.03 * Graded Test 4 + 0.03 * Graded Test 5 + 0.03 * Graded Test 6 + 0.03 * Graded Test 7 + 0.03 * Graded Test 8 + 0.03 * Graded Test 9

Bibliography

Recommended Core Bibliography

Decision making in innovation portfolio management. (2016). Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.8023B47D
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
Raja, M., & Raja, R. (2016). Equity Trading and Investment Analysis Using R: A Case Study. IUP Journal of Computer Sciences, 10(1/2), 108–117. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=iih&AN=115909799

Recommended Additional Bibliography

Hunt, J. A., & Project Management Institute. (2018). PMI-ACP Project Management Institute Agile Certified Practitioner Exam Study Guide. Indianapolis: Sybex. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1693203
Project Management Institute. (2017). The Standard for Portfolio Management: Vol. Fourth Edition. Project Management Institute.

Магистерская программа «Финансы»

Financial Markets: FX, Debt and Equity Market