## Fundamentals of Finance

### Lehrinhalte

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

Präsenzveranstaltung

Pflichtfach

### Empfohlene Fachliteratur

Brealey, R., Myers, S., 2014, Principles of Corporate Finance, 11th ed., McGraw-Hill Education

### Lern- und Lehrmethode

Interactive teaching (lecture and discussion), Solving exercises with pencil and calculator as well as with MS Excel during the course, a trail exam, and a mini quiz.

### Prüfungsmethode

The course assessment is based on a written midterm exam (30% of the grade) and a written final exam (70% of the grade).

### Voraussetzungen laut Lehrplan

Basics of Finance, Mathematics and Statistics

### Schnellinfos

#### Studiengang

Quantitative Asset and Risk Management (Master)

Master

5.00

Englisch

Berufsbegleitend

2024

1 WS

Ja

#### Lernergebnisse der Lehrveranstaltung

After the successful completion of the course students are able to categorize the most important financial products, outline mayor characteristics and list important financial markets. They can apply the models of basic portfolio theory for determining optimal portfolios and comment on advantages and disadvantages of these models. Furthermore, the students can calculate various key figures for stocks, bonds and derivatives and interpret them and assess risk and return characteristics of various financial products.

#### Kennzahl der Lehrveranstaltung

0613-09-03-BB-EN-02