Foundations of Finance - Foundations of Finance, Group D 2

Participation Prerequisites

None

Course Content

This course covers the foundations of financial decision making. It focuses on investment decisions first under certainty and subsequently under uncertainty. It presents solutions to the optimal combination of risky assets in a portfolio and the determination of the market price of risk. Moreover, it provides an introduction to currencies and derivatives as well as behavioral finance. Part I: Value Part II: Bonds Part III: Neoclassical Finance Part IV: Derivatives and Currencies Part V: Behavioral Finance

Intended Learning Outcomes and Competencies

Investments under certainty and uncertainty, portfolio theory, Capital Asset Pricing Model (CAPM), currencies and derivatives, behavioral finance

Instruction Type

Presence

Form of Examination

Written exam

Literature

• Brealey, Myers, Allen – Principles of Corporate Finance, 14th Edition (2022) — ISBN 978-1265074159

• Bodie, Kane, Marcus – Investments, 13th Edition — ISBN 978-1266837227

• Copeland, Weston, Shastri – Financial Theory and Corporate Policy, 4th Edition — ISBN 978-1292034812

• Thaler, Richard H. – Mental Accounting Matters (1999)