Financial Analysis and Risk Management
Full course descriptionThis course provides an introduction to the fundamentals of finance. Students learn about basic concepts such as discounting and risk. Using these concepts they learn about methods to value stocks and bonds, about tools for guiding investment decisions by firms, and about models for how investors allocate their capital. Apart from these analytical tools the course also covers institutional aspects regarding the functioning of financial markets and the role of intermediaries such as banks. The final part of the course provides an introduction to options as a financial instrument for risk management. For companies, real options add flexibility to manage the risk of investment projects.
Formative assessment: Tasks and cases, computational exercises
Summative assessment: Exam, participation
Instructional approach: Lectures and tutorials
Course objectives* Students learn about the basic principles of corporate financial decisions and the functioning of financial markets.
* Students will be able to read and interpret financial information.
* Students can judge investment proposals.
* Students can reflect on the contents of articles in the financial press.
* Students learn about shareholder value and the interaction with other stakeholders in the firm.
* Students present solution of small cases.