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Course syllabus - Finance

Scope

7.5 credits

Course code

NAA141

Valid from

Autumn semester 2023

Education level

First cycle

Progressive Specialisation

G1F (First cycle, has less than 60 credits in first-cycle course/s as entry requirements).

Main area(s)

Economics, Business Administration

School

School of Business, Society and Engineering

Ratified

2022-12-22

Literature lists

Course literature is preliminary up to 8 weeks before course start. Course literature can be valid over several semesters.

    • Ratified date: 2023-09-04
    • Latest update: 2023-09-04

    Books

    Hillier, David; Ross, Stephen; Westerfield, Randolph; Jaffe, Jeffrey; Jordan, Bradford

    Corporate finance

    Fourth European edition : London : McGraw-Hill Education, [2020] - xii, 864 sidor

    ISBN: 9781526848086 LIBRIS-ID: bnljfrx48qgn2967

    Mandatory

Objectives

The aim of this course is to analyze a firm's capital decisions, to price bonds and stocks, to explore the return-risk trade-off, and how to price and use some financial derivatives.

Learning outcomes

After completed course the student shall be able to:

1. Explain and calculate present and future values of payment streams, such as annuities 

2. Explain and use net present value and internal rate of return to evaluate investment projects 

3. Explain and apply the theory for decision making under risk 

4. Explain and apply simple theories to price stocks and bonds 

5. Describe and explain relationships between return and risk 

6. Explain and apply theories for how optimal stock portfolios can be constructed 

7. Explain how derivatives such as options and futures work 

8. Explain and apply theories for how derivatives are priced and can be used to minimize risk 

Course content

Classical investment theory in the absence of risk. The present value method for evaluating investment projects and finding prices for bonds. Decision making under risk. Modern theory of investment, the Capital Assets Pricing Model and other pricing models for stocks. The use of derivative instruments, such as options and futures to manage risk. The pricing of derivatives. 

Tuition

The course is organised in a series of lectures and seminars with problem solving. 

Specific requirements

Economics 22.5 credits. In addition Mathematics course C/Mathematics course 3b or 3c and English course 6.

Examination

Assignment (INL1), 1,5 credit, mark Passed (G) (Learning outcomes 1-8)
Examination (TEN1), 6 credits, marks Passed (G) or Passed with distinction (VG) (Learning outcomes 1-8)

 

A student who has a certificate from MDU regarding a disability has the opportunity to submit a request for supportive measures during written examinations or other forms of examination, in accordance with the Rules and Regulations for Examinations at First-cycle and Second-cycle Level at Mälardalen University (2020/1655). It is the examiner who takes decisions on any supportive measures, based on what kind of certificate is issued, and in that case which measures are to be applied.

Suspicions of attempting to deceive in examinations (cheating) are reported to the Vice-Chancellor, in accordance with the Higher Education Ordinance, and are examined by the University’s Disciplinary Board. If the Disciplinary Board considers the student to be guilty of a disciplinary offence, the Board will take a decision on disciplinary action, which will be a warning or suspension.

Grade

Pass with distinction, Pass, Fail

Interim Regulations and Other Regulations

This course overlaps with:
3 credits with NAA201 Corporate Finance,
4,5 credits with NAA202 Investment Theory,
7,5 credits with NAA106 Finance,
7,5 credits with NAA115 Finance