This course is an introduction to the main topics of Finance. Financial Economics is typically divided in two broad aereas, namely Corporate Finance and Financial Markets. The first part of the course focuses on the, so-called, core issues in Corporate Finance. We will start by introducing the tools to discount and evaluate risky investment decisions. Once having learned those tools, we can apply them to choose between different risky investments, a process called capital budgeting. In a second step, we will learn how to use the discount model to evaluate companies. The second part focuses on Financial Market theory. We analyse the way investors construct their portfolios and how this leads to the notion of equilibrium asset pricing. We also analyse te way financial markets function in light of investor behaviour.
- Teacher: Nataļja Točelovska