DE / EN

FIN 301: Investments and Asset Pricing

Contents

  • Investment decisions (cash value, internal interest rate)
  • Stock and Bond Valuation
  • Interest yield and risk (portfolio theory)
  • Capital costs during insecurities (CAPM, APT)
  • Corporate governance, agency problems , behavioral finance and market efficieny

Learning outcomes
Participants of this partial module are able to analyze and judge price movements on the financial and other asset markets. They should be able to independently valuate stocks and bonds under standard prerequisites with the help of widely-used practical models. Furthermore, the participants will learn to correctly apply methods of capital asset pricing to analyze portfolio decisions as the consideration of risks and return assumption and to distinguish between systematic and diversifiable risks.

Necessary prerequisites

Recommended prerequisites

Contact hoursIndependent study time
Lecture2 SWS7 SWS
Exercise class2 SWS6 SWS
ECTS6
LanguageEnglish
Form of assessmentWritten exam (90 min.)
Restricted Admissionno
Further information
Examiner
Performing lecturer
Prof. Dr. Erik Theissen
Prof. Dr. Oliver Spalt
Prof. Dr. Erik Theissen / Prof. Dr. Oliver Spalt
OfferingSpring semester
Duration of module 1 semester
Range of applicationB.Sc. Bus. Adm.
Preliminary course work
Program-specific Competency GoalsCG 1, CG 2
Graded yes
LiteratureBrealey / Myers / Allen: Principles of Corporate Finance, 13th international edition (2019)
Course outline1. Goals and Governance of the Firm
2. The NPV Method – Basics
3. The NPV Method – Extensions
4. Alternatives to the NPV Rule
5. Applying the NPV Method
6. Valuing Bonds and Stocks
7. Introduction to Risk and Return
8. Markowitz Portfolio Theory
9. The CAPM
10. Risk and the Cost of Capital
11. Project Analysis
12. Efficient Markets and Behavioral Finance