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Course 2017-2018 a.y.

30414 - PRINCIPLES OF FINANCE


BEMACS
Department of Finance

Course taught in English


Go to class group/s: 25

BEMACS (7 credits - II sem. - OB  |  SECS-P/11)
Course Director:
STEFANO ROSSI

Classes: 25 (II sem.)
Instructors:
Class 25: STEFANO ROSSI


Course Objectives
The course aims at providing students with a thorough understanding of the principles of finance. The students learn
  • How investors make portfolio allocation decisions and how assets are priced in financial markets.
  • How firms set their financial policies, including capital budgeting (which investments to make), capital structure (how to raise capital), and payout policy (how to return profits to shareholders).
  • The extent to which the leading finance theories really work in the data and in the real world.
The course covers the material using mathematical methods and rigorous analytical thinking. Key ingredients of the course include engaging lectures by the instructor, weekly problem sets, additional readings, and active student participation through class discussion.


Intended Learning Outcomes
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Course Content Summary
  • Finance and Big Data: Asset Prices and Asset Returns.
  • Valuation of Stock and Bonds.
  • Capital budgeting.
  • Mean-Variance Analysis and Portfolio Diversification.
  • Equilibrium in Financial Markets: The Capital Asset Pricing Model (CAPM).
  • Market Efficiency and Behavioral Finance: Definitions and Empirical Tests.
  • Financial Structure and the Value of the Firm.
  • Payout Policy.

Teaching methods
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Assessment methods
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Detailed Description of Assessment Methods
  • Written exam(s) with a mix of open ended and multiple choice questions.
  • Homework and class participation.

Textbooks
  • I. WELCH, Corporate Finance, An Introduction, Prentice Hall, 2017, 4th edition, ISBN 978-0984004928.

Prerequisites
Mathematics.
Statistics.
Microeconomics.
Last change 13/06/2017 15:05