Finance I
Code: 42728 ECTS Credits: 10| Degree | Type | Year |
|---|---|---|
| 4310025 Economics and Business Administration | OT | 0 |
Contact
- Name:
- Maria Antňnia Tarrazón Rodón
- Email:
- mariaantonia.tarrazon@uab.cat
Teachers
- Jordi Caballe Vilella
- Maria Antňnia Tarrazón Rodón
- Florina Raluca Silaghi
Teaching groups languages
You can view this information at the end of this document.
Prerequisites
Fundamentals of Economics and Business I
Fundamentals of Economics and Business II
Objectives and Contextualisation
Finance I: Financial Economics, Asset Pricing and Financial Strategies
Foundations of Finance: Assets, market behavior, market phenomena, and decisions about saving, consumption and investment. Value creation in financial markets: Required rate of return and asset pricing of shares, bonds and derivatives.
Competences
- Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
- Carry out empirical studies.
- Carry out oral presentations in the English language.
- Contextualise economic problems through the use of formal models that enable quantitative analysis.
- Demonstrate an understanding of the investment and financing coordinates as they affect the financial decisions of the company
- Demonstrate an understanding of the mechanisms and characteristics of balance in financial markets
- Relate financial decision to the company strategy as a whole
- Respect ethical, social and environmental values.
- Show an understanding of decision-making models in the area of real investment project selection, company financing and investment and international financing.
- Show an understanding of the principles of evaluations of basic and derived financial assets
- Show an understanding of the principles of financial investment: portfolio selection and financial investment strategies
- Situate these company financial decisions in the framework of the financial market
- Understand academic research in the areas indicated.
- Understand the time and risk coordinates as they affect the financial markets
- Use different statistical programs to process data.
Learning Outcomes
- Argue the case for and write a precise, clear and concise report of the problems presented in the English language.
- Carry out empirical studies.
- Carry out oral presentations in the English language.
- Contextualise economic problems through the use of formal models that enable quantitative analysis.
- Demonstrate an understanding of the investment and financing coordinates as they affect the financial decisions of the company
- Demonstrate an understanding of the mechanisms and characteristics of balance in financial markets
- Relate financial decision to the company strategy as a whole
- Respect ethical, social and environmental values.
- Show an understanding of decision-making models in the area of real investment project selection, company financing and investment and international financing.
- Show an understanding of the principles of evaluations of basic and derived financial assets
- Show an understanding of the principles of financial investment: portfolio selection and financial investment strategies
- Situate these company financial decisions in the framework of the financial market
- Understand academic research in the areas indicated.
- Understand the time and risk coordinates as they affect the financial markets
- Use different statistical programs to process data.
Content
1. Decisions and Portfolio Choice under Uncertainty
2. General Equilibrium under Uncertainty and the Valuation of Contingent Claims
3. Incomplete Markets
4. Term Structure of Interest Rates. Bond Management
5. Information, Market Efficiency and Market Regulation
6. Mean-Variance Models: CAPM and APT
7. Share Valuation Models
8. Derivatives: Pricing and Strategies
Activities and Methodology
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Lectures with ITC support | 37.5 | 1.5 | 5, 8, 9, 10, 14 |
| Resolution of exercises | 37.5 | 1.5 | 4, 5, 8, 9, 10, 14 |
| Type: Supervised | |||
| Tutoring and monitoring work in progress. In-class presentations | 62.5 | 2.5 | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
| Type: Autonomous | |||
| Study, Reading, Exercise solving, Essays writing, | 79.5 | 3.18 | 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
The activities that will allow the students to learn the basic concepts included in this course are:
1. Theory lectures where the instructor will explain the main concepts.
The goal of this activity is to introduce the basic notions and guide the student learning.
2. Problem Sets
In some subjects, a problem set which students will have to solve individually or in teams will be included in every unit. The goal of this activity is twofold. On one hand students will work with the theoretical concepts explained in the classroom, and on the other hand through this practice they will develop the necessary skills for problem solving.
3. Practice lectures
The aim of this activity is to comment on and solve any possible doubt that students may have had solving the problem assignment. This way they will be able to understand and correct any errors they may have had during this process.
4. Essay writing
In some subjects, students will produce written essays on the topics proposed.
5. Tutoring hours
Students will have some tutor hours in which the subject instructors will help them solve any doubts they may have.
Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.
Assessment
Continous Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| Exercises and essays | 35% | 30 | 1.2 | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15 |
| Topic Exam I | 21.66% | 1 | 0.04 | 1, 4, 6, 8, 10, 13, 14, 15 |
| Topic Exam II | 21.66% | 1 | 0.04 | 1, 4, 5, 8, 11, 12, 13, 15 |
| Topic Exam III | 21.66% | 1 | 0.04 | 1, 4, 7, 8, 9, 13, 15 |
1. The module consists of a number of different subjects or parts taught by different professors. The final mark for the module will consist of the average of the marks of each subject within the module.
- The module is considered successfully passed if:
- the mark for each subject within the module is higher than or equal to 3.0 (in a 0 to 10 scale), and
- the final mark for that module is higher than or equal to 5.0 (in a 0 to 10 scale).
IMPORTANT: Class attendance is mandatory. In order to pass each subject, students must attend all lectures. Special cases, with appropriate justification, will be considered individually by the professors together with MEBA coordinators.
- If the module is not successfully passed, the MEBA coordinators will ask the student to re-take the exams for those subjects that, according to the coordinators and the professors opinions, may help the student to successfully pass the module.
If after the re-take exams the student successfully passes the module, her or his mark for that module will be upgraded accordingly, otherwise the previous grade will remain valid. Two restrictions apply for the results after retaking:
- the highest mark for any subject retaken is 5.5; and
- the final grade of the module after the re-take exams cannot be higher than 6.8.
The calendar for the re-retake exams will be announced along with the grades report.
2. The mark -between 0 and 10- for each subject will be computed by each professor based on his or her ow criteria and on the student's performance. As a general rule, 35% of the mark will correspond to the assessment of the continuous work of the student during the course, and 65% will consist of acomprehensive final examination. The duration andnature of the final examination isdecided by each professor.
3. Final exams are compulsory. Re-take exams are only thought for those students having previously written a first exam and failed.
This modul does not offer the option for comprehensive evaluation.
Bibliography
Basic Bibliography
Brealey, R.A., S.C. Myers, F. Allen and A. Edmans Principles of Corporate Finance. 14th edition. McGraw-Hill. 2023.
Campbell, J. Y., Financial Decisions and Markets: A Course in Asset Pricing. Princeton University Press. 2018.
Copeland, T.E., J.F. Weston and K. Shastri. Financial Theory and Corporate Policy. 4th edition. Addison-Wesley. 2004.
Hull, J. Options, Futures and Other Derivatives, 10th edition. Pearson, 2018.
Complementary bibliography
de la Grandville, O. Bond Pricing and Portfolio Analysis. Protecting Investors in the Long Run. MIT Press. 2003.
Gollier, C. The Economics of Risk and Time. MIT Press, 2001.
Hens T. and M.O. Rieger. Financial Economics. A Concise Introduction to Classical and Behavioral Finance. 2nd edition. e-book. Springer. 2016. UAB e-catalogue.
Lee, C-F. and A.C. Lee (eds.). Encyclopedia of Finance. 2nd edition. e-book. Springer. 2013. UAB e-catalogue.
Semmler, W. Asset Prices, Booms and Recessions. 3rd edition. Springer. 2011. UAB e-catalogue.
The New Palgrave Dictionary of Economics. e-book. Macmillan. 2018. UAB e-catalogue.
Software
Excel. R. Stata.
Language list
| Name | Group | Language | Semester | Turn |
|---|---|---|---|---|
| (TEm) Theory (master) | 30 | English | second semester | morning-mixed |