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

Präsenzveranstaltung

Art der Veranstaltung

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)

Akademischer Grad

Master

ECTS Credits

5.00

Unterrichtssprache

Englisch

Studienplan

Berufsbegleitend

Studienjahr, in dem die Lerneinheit angeboten wird

2023

Semester in dem die Lehrveranstaltung angeboten wird

1 WS

Incoming

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