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
–
| Forms of teaching and learning | Contact hours | Independent study time |
|---|---|---|
| Lecture | 2 SWS | 7 SWS |
| Exercise class | 2 SWS | 6 SWS |
| ECTS credits | 6 |
| Graded | yes |
| Workload | 180h |
| Language | English |
| Form of assessment | Digital examination – supervised (on campus) (90 min) |
| Restricted admission | no |
| Further information | – |
Examiner Performing lecturer |  | Prof. Dr. Erik Theissen Prof. Dr. Oliver Spalt Prof. Dr. Erik Theissen / Prof. Dr. Oliver Spalt |
| Frequency of offering | Spring semester |
| Duration of module | 1 semester |
| Range of application | B.Sc. BWL |
| Preliminary course work | – |
| Program-specific Competency Goals | CG 1, CG 2 |
| Literature | Brealey / Myers / Allen: Principles of Corporate Finance, 13th international edition (2019) |
| Course outline | 1. 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 |