- Docente: Rossella Agliardi
- Credits: 8
- SSD: STAT-04/A
- Language: English
- Teaching Mode: In-person learning (entirely or partially)
- Campus: Rimini
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Corso:
First cycle degree programme (L) in
Economics of Tourism and Cities (cod. 6645)
Also valid for First cycle degree programme (L) in Economics of Tourism and Cities (cod. 6645)
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from Sep 14, 2026 to Dec 15, 2026
Learning outcomes
The course provides some basic concepts of financial economics and a practical understanding of financial risks as well as of contracts and methods for managing these risks under normal and stressful market conditions. Basics topics are introduced including the term structure of interest rates, annuities and loan repayment, bond pricing market risk, portfolio allocation, an introduction to derivatives and their use for hedging. At the end of the course, students will be able to manage market risk, credit risk and sovereign risk with a number of quantitative techniques.
Course contents
Basic principles of financial mathematics: simple/commercial convention versus compound/instantaneous ones. Annuities-certain: present values and accumulations. Deferred annuities. Perpetuities. Loan repayment schedules. Project appraisal and investment performance. NPV, IRR.
Fixed income market: term structure of interest rate, spot rates, forward rates, yield-to-maturity, duration. Italian sovereign bonds. Green finance: green bonds and sustainability-linked bonds.
Valuation of risky investments. Expected utility. Stochastic dominance. Mean-variance. Risk and volatility. Value-at-Risk. Markowitz model for portfolio allocation.
Financial derivatives: forward contracts, futures, options.Readings/Bibliography
S. J. Garrett. An Introduction to the Mathematics of Finance. Butterworth-Heinemann. Second edition
Teaching methods
Lectures and exercises. Each topic is presented along with several examples and exercises. Some additional exercises will be discussed during the tutorial classes.
Assessment methods
Written exam (duration 60 minutes) consisting of short exercises and one or two more complex problems. Please note that the relevant topics will be always proposed in the written exam.
The first call will consist of two separate written exams, each counting for 50% of the final assessment.
The use of textbooks, personal notes and other printed notes is allowed; tablets and cell-phones are not allowed. Do not forget to bring a calculating machine.
Further information on the exam will be provided during the first lecture of each module.
The use of AI is forbidden during the exam and any use will constitute a violation of academic integrity.
Teaching tools
Slides. A list of exercises and some Excel speadsheets will be made available.
Office hours
See the website of Rossella Agliardi
SDGs
This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.