LEARNING OBJECTIVES
The course aims at teaching the principles of finance. It covers the essentials, while leaving more specialized topics to follow-up courses. Students learn how to set up and solve portfolio optimization problems and stock and bond valuation problems using the mean-variance framework, the capital asset pricing model (CAPM), the arbitrage pricing theory (APT), and discounted cashflow methods.
EXPECTED LEARNING OUTCOMES
Knowledge and understanding:
Students learn about: a wide range of investment and risk management tools, starting from the fundamentals of portfolio diversification; the main models for choosing and evaluating financial investment portfolios; and the concepts of financial market efficiency and stability . They will also learn how to appraise the evolution of monetary, debt and equity markets within the international macroeconomic context.
Applying knowledge and understanding:
At the end of the course, the student will be able to appraise the risk-return profile of individual securities and of investment portfolios.
Making judgments:
Students learn how to evaluate investment processes and develop critical reading skills of theories and economic facts.
Communication:
Students learn how to discuss financial issues precisely and clearly both with economists and laymen.
Learning skills:
Students learn the skills needed to deepen specific topics and to acquire new competences in advanced finance courses.