Banking and Theory of Finance 2400-PLSM120B
Students will learn the basic concepts of banking, stock exchange, pricing of financial instruments, theory of portfolio, the pricing of stocks, bonds, managing the risk of bond portfolio and term structure of interest rates.
The course begins with the reminder of basic concepts of theory of finance then focusing on others like Markowitz theory (finding the efficient set), compute the efficient set of portfolio, theories how assets are prices by the market (CAPM, APT), measuring portfolio performance. Stocks and bonds valuation, the term structure of interest rates and managing the risk of debt securities will be presented during seminar.
Next, capital markets will be presented with special attention to stock exchange. Moreover, we will focus on pricing an stocks, the risk of assets portfolio, ETF, IPO and management of credit risk will be presented. The fundamental pricing models and the main motivation why market participants use them.
We will discuss the latest headlines of macroeconomic, banking, monetary and financial markets.
Type of course
Course coordinators
Learning outcomes
The final achievement will be preparation of highly marked master thesis dissertation.
Assessment criteria
The assessment will be based on timely preparation of the master's thesis.
Bibliography
1. Peter S. Rose, 2001, Commercial Bank Management, IRWIN
2. Haugen R.A., 2007, Modern Investment Theory, Prentice Hall, New Jersey.
3. Hull J.C., 2008, Options, Futures and Other Derivative Securities, Prentice-Hall.
4. Rose P.S., 2000, Money and Capital Markets, Irwin McGraw-Hill
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: