Degree | Type | Year | Semester |
---|---|---|---|
2501572 Business Administration and Management | OB | 3 | 1 |
2501573 Economics | OB | 3 | 1 |
Standard requirements for the third course of the degree. The students registered in this subject are expected to have the skills of the previous courses.
This subject introduces students to financial foundations for the degrees to which it belongs. They learn to think in financial terms and get acquainted with the similarities and differences between financial and real economic analysis.
The course is centred on the financial market distinctive features and value creation from the twofold perspective of markets and corporations. Topics are studied from the point of view of the two dimensions of Finance: time and risk.
1 Assets and valuation principles
1.1 Primitive and derivative assets
1.2 Basic financial operations: Investment, speculation, hedging and arbitrage.
1.3 Capitalization and discounting.
1.4 The twofold dimension of finance: Time and risk.
2 Financial markets and their role in asset valuation
2.1 Concept and functions of the financial market. Primary and secondary market.
2.2. The stock and fixed income markets.
2.3 How derivative markets work.
2.4 Introduction to hedging with derivatives.
3 Diversification and portfolio selection
3.1 Common stocks risk and return.
3.2Portfolios risk and return.
3.3 Diversification and risk reduction
3.4 The Markowitz portfolio selection model.
4 The Capital Asset Pricing Model
4.1 .Introducing the risk free interest rate in portfolio selection: The separation theorem.
4.2 The market portfolio and the Capital Market Line.
4.3 The Security Market Line
4.4 Systematic risk vs. specific risk.
5. The efficiency of financial markets
5.1. Concept and properties of efficient capital markets.
5.2 Anomalies and noise.
5.3 Bubbles and crisis.
5.4. Financial markets regulation.
5.5 Ethics in financial markets.
6. Financial assets valuation: Common stocks and Bonds.
6.1 Required rate of return and risk premia.
6.2. Bond valuation.
6.3 Common stocks valuation: earnings and dividends.
6.4 Commonstocks valuation: Growth opportunities
7 . Introduction to option and futures valuation
7.1 Call and put concepts.
7.2 The put-call parity relationship.
7.3 Binomial valuation.
7.4 Introduction to futures price
Teaching will be offered on campus or in an on-campus and remote hybrid format depending on the number of students per group and the size of the rooms at 50% capacity.
66.67% of the credits (33 hours) are theoretical and 33.33% (16.5 hours) practical. Theory will be taught through lectures. Lecturers introduce the topics encouraging students's participation through questions and observations. In each topic presentation of contents is accompanied by the analysis and reasoning of the methods applied.
The practical part consists of problem solving (with and without software), analysis of financial market and corporate information, and selected readings. Ad hoc software will be used.
Students are expected to participate actively by solving exercises and analysing published information, especially financial websides. Problem solving in the classroom insists on the usage of software (especially spreadbooks).
The proposed teaching methodology may undergo some modifications according to the restrictions imposed by the health authorities on on-campus courses.
Title | Hours | ECTS | Learning Outcomes |
---|---|---|---|
Type: Directed | |||
Case studies and exercises | 11.5 | 0.46 | 2, 3, 5, 1, 15, 8, 9, 10, 11, 13, 14, 16 |
Master classes | 33 | 1.32 | 2, 3, 5, 1, 15, 9, 10, 12, 11, 14, 4 |
Type: Supervised | |||
Tutorials | 22.5 | 0.9 | 2, 3, 5, 6, 1, 15, 8, 9, 10, 12, 13, 14, 16, 4 |
Type: Autonomous | |||
Searching documents and references | 12 | 0.48 | 7, 8, 12, 14, 16 |
Solving exercises and case studies | 46 | 1.84 | 2, 3, 5, 1, 15, 8, 9, 10, 12, 13, 14, 16 |
Studying | 20 | 0.8 | 2, 3, 5, 6, 1, 7, 15, 8, 9, 10, 12, 11, 13, 14, 16, 4 |
The proposed evaluation activities may undergo some changes according to the restrictions imposed by the health authorities on on-campus courses.
The evaluation of Finance I consists of a continuous evaluation process formed by three activities based on two different typologies.
The final exam weights 50% and the other two activities – exercises, essays, case studies, questionnaires, individual or group presentations, etc. – weight 25% each.
Participation in all evaluation activities is compulsory.
The final grade of the subject is the weighted average of the marks earned in the three activities that constitute the continuous evaluation according to the weights quoted above.
If this weighted average is equal to or higher than 5.0, the student has passed the subject.
The retake-exam evaluates the whole contents of the subject in a new exam to be written following the rules of the Faculty of Economics and Business.
RULES OF THE FACULTY OF ECONOMICS AND BUSINESS ON EVALUATION AND RETAKING
Calendar of evaluation activities
The dates of the evaluation activities (midterm exams, exercises in the classroom, assignments, ...) will be announced well in advance during the semester.
The date of the final exam is scheduled in the assessment calendar of the Faculty.
"The dates of evaluation activities cannot be modified, unless there is an exceptional and duly justified reason why an evaluation activity cannot be carried out. In this case, the degree coordinator will contact both the teaching staff and the affected student, and a new date will be scheduled within the same academic period to make up for the missed evaluation activity." Section 1 of Article 115. Calendar of evaluation activities (Academic Regulations UAB). Students of the Faculty of Economics and Business, who in accordance with the previous paragraph need to change an evaluation activity date must process the request by filling out anApplication for exams' reschedule https://eformularis.uab.cat/group/deganat_feie/application-for-exams-reschedule
Grade revision process
After all grading activities have ended, students will be informed of the date and way in which the course grades will be published. Students will be also be informed of the procedure, place, date and time of grade revision following University regulations.
Retake Process
"To be eligible to participate in the retake process, it is required for students to have been previously been evaluated for at least two thirds of the total evaluation activities of the subject." Section 3 of Article 112 ter. The recovery (UAB Academic Regulations). Additionally, it is required that the student to have achieved an average grade of the subject between 3.5 and 4.9.
The date of the retake exam will be posted in the calendar of evaluation activities of the Faculty. Students who take this exam and pass, will get a grade of 5 for the subject. If the student does not pass the retake, the grade will remain unchanged, and hence, student will fail the course.
Irregularities in evaluation activities
In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section 10 of Article 116. Results of the evaluation. (UAB Academic Regulations).
Rules of the Universitat Autonoma de Barcelona concerning the grade "Non-assessable / No avaluable"
A student receives the grade "Non-assessable / No avaluable" whenthere is insufficient evidence of her/his participation in the evaluation of the subject.
A student is stated as “Non-assessable” in the subject Finance I if she/he decides not to write the final exam weighted 50% in the grade.
Title | Weighting | Hours | ECTS | Learning Outcomes |
---|---|---|---|---|
Exam at the end of the semester | 50% | 2 | 0.08 | 2, 3, 5, 1, 15, 9, 10, 13, 14 |
First exam of continuous evaluation | 25% | 1.5 | 0.06 | 2, 3, 5, 6, 1, 7, 15, 8, 9, 10, 12, 11, 13, 14, 16, 4 |
Second exam of continuous evaluation | 25% | 1.5 | 0.06 | 2, 3, 5, 1, 15, 9, 10, 14 |
BODIE, Z.; A. KANE i A. J. MARCUS. Investments. 11th edition. New York: McGraw-Hill, 2018.
BREALEY, R., S.C. MYERS, F. ALLEN. Principles of Corporate Finance, 13th edition. New York: McGraw-Hill, 2020.
HULL, J. Fundamentals of Futures and Options Markets. 9th edition. Prentice-Hall. 2017.
MALKIEL, B.G. A Random Walk Down Wall Street. 12th edition. New York: W.W. Norton, 2020.
ROSS, S.A.; R.W. WESTERFIELD; J. JAFFE; B.JORDAN. Corporate Finance. 12th edition. Nova York: McGraw-Hill, 2019.