This course, formerly called Principles of Finance, is designed for students who do not yet have a background in finance or are looking for a refresh.
It will provide the necessary basis for students to follow the more technical courses of the Advanced Master in Financial Markets.
It complements the course of “Principles of Economics” and also brings up the latest developments in Corporate Finance.
It will articulate the principles, tools and techniques to assess investment and financing decisions made by firms, in their intimate relationship with financial markets.
Referring to the arbitrage principle in financial decision-making, the course will start with the key foundations of finance, the valuation principles in general and the understanding of the requirement of return given a level of risk.
The second part will be devoted to the valuation of the various asset classes, projects and firms, including the arbitrage principle in financial decision-making, time value of money, interest rate management and bond portfolio management, project valuation, capital markets and the price of risk.
Students will be advised to undertake readings for each subject, and will work as well on exercises for each theme to be covered in class in small groups.