Fundamentals of Finance

financial products (stocks, bonds, derivatives, etc.) and financial markets (money markets and capital markets); organisation of exchanges (basics); types of stocks, ratios (e.g. price-earnings-ratio, book-to-market ratio), dividend discount model; portfolio theory and CAPM / APT, sensitivity measures for stocks (beta); derivatives on stocks and stock indices (forward/futures, call and put options), Valuation of forwards on stocks and stock indices; types of bonds (issuer, currency, rights of cancellation, fixed coupon vs. FRNs); spot rates, forward rates, yield to maturity, spreads; valuation of riskless bonds and sensitivity measures (modified duration, Dollar duration, Fisher/Weil duration, basis point value, modified convexity, dollar convexity, key rate duration, key rate convexity), derivatives on bonds and interest rates (FRAs, interest rate swaps, forwards/futures on bonds and interest rates, calls and puts on bonds and interest rates); valuation of FRAs, interest rate swaps and forwards on bonds and interest rates

Art der Vermittlung


Art der Veranstaltung


Empfohlene Fachliteratur

Brealey, R., Myers, S., 2008, Principles of Corporate Finance, 9th ed., McGraw-Hill

Lern- und Lehrmethode

Integrated class


This course is based on continuous assessment (30%) and a written final exam (70%). For the continuous assessment (e.g. assignments, presentations, in-class contributions, quizzes) the rules are outlined in the syllabus of each lecturer.

Voraussetzungen laut Lehrplan

Basics of Finance, Mathematics and Statistics



Quantitative Asset and Risk Management (Master)

Akademischer Grad


ECTS Credits






Studienjahr, in dem die Lerneinheit angeboten wird


Semester in dem die Lehrveranstaltung angeboten wird

1 WS



Lernergebnisse der Lehrveranstaltung

After the successful completion of the course students are able to describe the most important financial products and financial markets. The students can apply the models of basic portfolio theory and outline advantages and disadvantages of these models. Furthermore the students are able to calculate various key figures for stocks, bonds and derivatives and interpret them.

Kennzahl der Lehrveranstaltung