Knowledge
Upon successful completion, students will
- Understand the role of capital markets and how to use them.
- Know about recent developments in capital markets and the securities in these markets.
- Understand how to measure return and risk for stock portfolios and why diversification reduces risk.
- Understand the effects of a firms’ debt financing versus equity financing.
- Understand the use of derivatives and other financial instruments for risk management.
Skills
Upon successful completion, students will be able to
- Implement theories and models to analyze investments.
- Calculate returns and volatility for securities and portfolios from historical asset prices.
- Calculate expected returns and volatility of a portfolio and measure systematic risk.
- Weigh the costs and benefits of debt that a firm must balance when deciding about financing the firm’s investments.
- Analyze the factors that affect option prices and become familiar with the Black-Scholes option pricing formula.
General competence
Upon successful completion, students will be able to
- Communicate the elements mentioned above related to knowledge and skills.
- Implement the models for real-world applications.
- Exchange views and experiences with other people with a background in the field of business, thereby contributing to good practice.