The course aims to offer students the essential tools for a correct interpretation of the structure and functioning of securities markets. In particular, it will provide the fundamental basis for understanding the logic of investment selection, securities portfolio management and performance evaluation of a financial instrument or portfolio.
The learning objectives of the course can be described as follows:
a) Knowledge and understanding skills: at the end of the course the student will have acquired the knowledge and understanding related to the functioning of financial markets, the evaluation of financial instruments with regard to risk and return characteristics and the impact within a diversified portfolio
b) Ability to apply knowledge and understanding: at the end of the course, the student will be able to apply the knowledge and practical skills necessary to reconstruct the investment process in securities markets; identify and quantify the financial risks to which investments are exposed; use derivatives for hedging and speculative purposes; select and apply the pricing models of financial instruments.
c) Autonomy of judgement: once learned the basic principles of the financial system, the student will be able to understand and interpret with autonomy of judgement the content of information issued by issuers and securities market management companies; the behaviour of financial markets with respect to events of a systemic nature or concerning individual issuers; the effects on financial markets of the actions of policy makers; the evaluation of the efficiency of an investment portfolio.
d) Communicative skills: the student must be able to use the appropriate technical terminology to communicate and interact with interlocutors with varying degrees of knowledge of the topics covered during the course.
e) Learning ability: the student must demonstrate that he or she has acquired the logical and conceptual tools necessary to strengthen his or her learning ability in the financial field and to continue his or her studies in the field of market analysis and financial investment management.
A knowledge of the principles of financial mathematics and the choice of financial investments is required. It is also desirable to have a good knowledge of the most common electronic spreadsheets prodromal to the practical applications developed in the classroom
The course in Financial Markets(CFU 6 credits) deals with the following topics:
1) Markets and bonds
Topics: bond instruments, types and taxonomy, risk and yield, yield curves (14 hours including 5 hours of exercise)
2) Markets and equity instruments
Topics: corporate finance and business valuation methods, stocks, types and taxonomy, risk and return (10 hours including 5 hours of exercise)
3) Technical analysis
Topics: definition, basic techniques, simulation (4 hours of testimony)
4) Asset allocation models
Topics: Markowitz model (5 hours including 3 hours of practice)
5) Asset pricing models
Topics: CAPM and Market model (2 hours)
6) Asset management
Topics: Institutions, funds and other financial instruments, portfolio strategies, performance evaluation (7 hours including 2 hours of testimony)
7) Markets and derivative securities
Topics: futures, forwards, options and swaps (10 hours including 5 hours of practice)
8) Exercise and self-assessment test (2 hours)
Given the rules for the purposes of social distancing due to COVID-19, the teaching activity is structured as follows:
1) Frontal lessons aimed at improving students' knowledge and understanding skills and carried out with the support of both slides and the classic blackboard; in order to strengthen communication skills and autonomy of judgment, students are encouraged to participate in the discussion with questions, considerations and reflections.
2) Exercises: aimed at training application and problem solving skills. The exercises cover a variety of topics: pricing of financial instruments with yield and risk calculation; calculation of the efficient frontier for the allocation of savings in the financial portfolio; use of derivatives for speculative and hedging purposes.
3) Company Testimonials: analysts, trading experts, representatives of the credit intermediation sector are invited to enrich the contents of the course by bringing their professional experience to the classroom.
4) Individual study: students integrate the knowledge and skills acquired in the classroom with the individual study of the textbook and the reading of in-depth documents indicated by the teacher in order to promote autonomous learning skills.
The reference book for the course of Financial Markets Economics course P.L. Fabrizi (edited by): Economia del Mercato Mobiliare, Egea, Milan, sixth edition.
The exam material also includes slides and exercises discussed in class.
During the course the teacher will provide additional in-depth material, which will not be evaluated in the final test.
The objective of the final exam is to verify the level of achievement of the objectives previously indicated.
The examination is divided into 2 parts in 2 different days.
1) a quiz test (1 multiple-choice quiz, 4 open-ended questions, 1 solution of numerical exercises) on all the topics covered in the course.
The test is intended to assess the study of the subject and understanding of the basic topics and has a selection character (the student who does not show sufficient knowledge of the topics is not admitted to subsequent tests); to pass the test you must acquire at least 18 points out of 30. The time allowed for the test is 90 minutes.
During the exam, it is not allowed to consult texts or other material made available by the teacher during the course.
If the written test is insufficient (less than 18/30) it will not be possible to access the oral test.
2) an oral test in which the ability to link and compare different aspects dealt with during the course will be evaluated. To pass the test you must answer correctly at least 1 question out of 2. For each fully correct answer the score is +2. Overall, in the oral test you can reach the maximum score of +4 which will be added to the written exam score.
The evaluation of the tests takes into account the completeness and accuracy of the answers, as well as the clarity and technical language used in the presentation.