78489 - Introduction to Finance

Academic Year 2015/2016

Learning outcomes

At the completion of the module, students will have a basic knowledge of concepts and analytical techniques in finance, and they will be able to apply them to nowadays financial market transactions. This includes the ability to manage the time value of money, evaluate real and financial assets, understand the risk and return trade-off, and possess a basic understanding of the main financial markets.

Course contents

Introduction to Finance will cover the international financial system and its main actors, along with basic finance concepts such as the time value of money, asset valuation, and risk and return trade-off. Financial markets—i.e., money and bond market, equity market, and foreign exchange market—will be discussed within the international financial system.

Readings/Bibliography

The main textbook for the course is:

- Peterson Drake, P. and F. J. Fabozzi, The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management, John Wiley & Sons, 2010.

Additional readings may be assigned by the instructor as the course progresses.

Assessment methods

Course attendance is mandatory. 70 percent of the lectures is the minimum attendance rate to be granted the access to the 90 minutes final class test (encompassing both Introduction to Finance and a second module, to be chosen between Financial Markets and Corporate Governance) that will take place after the class ending, within the official exam sessions. It will include 8 multiple-choice questions (8 points), 1 short answer question (8 points) and 2 problems (14 points, i.e. 7 points each). Moreover, students will be asked to present and critically discuss a topic in finance (team work) in the last scheduled meeting (about 15-20 minutes for each presentation, depending on the number of students). This will provide the participants with a maximum of 4 points (to be added to the final written exam mark). Please note that these additional extra-points will be only valid in the official exam session right after the course ending.

All positive grades will be automatically registered within 1 week from grading (registration date), unless the candidate asks not to proceed sending an email to the instructor before the registration date.

Office hours

See the website of Massimiliano Barbi