|Module / ECTS / Path / Specialisation||Module :Introduction to Investment and Financial Markets : 5 ECTS.|
|Open for visitors||yes (5 ECTS)|
|Working language :||English|
|Volume of contact hours :||27 h|
|Workload to be expected by the student :||108 h|
Track : Attendance
This course will give students a global perspective on financial markets organisation and instruments. In the first chapter, we will present the different segments of the financial markets (Money Market, Bond Market, Stock Market, Forex). Then, we will focus on bonds valuation and bond markets. The third chapter will be dedicated to stocks, with the study of the risk and return couple. The fundamentals of the Capital Asset Pricing Model and Portfolio Theory will be dealt with in chapter 4. Finally, chapter 5 will provide a brief introduction to derivatives with a focus on options.
- Describe the different financial markets and the actors involved
- Identify the main characteristics of the options
- Distinguish stocks' systematic risk from specific risk
- Use the parameters of bond calculation (price, duration) to study the impact of changes in interest rates
- Calculate the expected rate of return of a share using the Capital Asset Pricing Model (CAPM)
- Compare the return and risk of two financial assets
Chapter 1 : Financial Markets Organisation
Chapter 2 : Bonds and Bond Market
Chapter 3 : Stocks
Chapter 4 : the Capital Asset Pricing Model
Chapter 5 : introduction to Derivatives
Fundamentals of Accouting (financial statements analysis), Fundamentals of Financial Mathematics (discount rate)
Basic knowledge in Financial Economy
Berk P., De Marzo J., 2017, "Corporate Finance", 4th edition, Pearson
Hull J., 2017, Options, futures and other derivatives, 9th edition, Pearson
Such behaviors as...
... may lead to expulsion from classes.