Finance 2: Financial Markets

BUD4 Finance 2: Financial Markets

Vår 2024

Høst 2024
  • Læringsutbytte

    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.

  • Undervisningsopplegg

    A combination of 1) lectures with active discussion between the students and lecturer, 2) problem-focused learning in groups, and 3) some software-based (for example, Excel and Python) assignments.

  • Obligatorisk aktivitet (arbeidskrav)

    There will be 2-3 software-based (i.e., Excel, Python, etc.) assignments covering core topics discussed throughout the course.

  • Vurderingsordning

    4-hour individual school exam. The exam must be answered in English.

    The students will have access to statistical Software. You can only open and use the provided documents that you will download from Wiseflow when the exam starts. You are not permitted to open or use other documents or programs on your PC.

  • Vurderingsuttrykk

    A-F

  • Litteratur

    Berk, DeMarzo, and Harford. Fundamentals of Corporate Finance, Global Edition.

  • Hjelpemidler til eksamen

    Calculator

    One bilingual dictionary (Category I)

    All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/.

Oppsummering

Studiepoeng
5
Undervisningsspråk
English.

Emneansvarlig

Associate Professor Jøril Mæland, Department of Finance