Introduction To Financial Management
Financial performance ratios. Risk and return. Time value of money. Net Present Value. Market efficiency. Asset pricing models. Modern portfolio theory. Bonds and interest rates. Forwards, futures and options. Working capital management. The structure and performance of the money management…
Learning outcomes
When a student completes this course, he/she should be able to: 1. explain the basic tradeoff between risk and return, and how it applies to various types of financial instruments: stocks, bonds, futures, options; 2. apply the concept of time value of money (TVM) and net present value (NPV) in determining the risk premium of a financial asset; 3. illustrate the application of the two main models of asset pricing: the capital asset pricing model (CAPM) and arbitrage pricing theory (APT); 4. analyze a portfolio of securities that maximizes return while minimizing risk; 5. define financial instruments such as bonds, stocks, currencies, and derivatives; and 6. appraise the money management industry and its key players: pension funds, mutual funds, and hedge.
Course contents
Financial performance ratios. Risk and return. Time value of money. Net Present Value. Market efficiency. Asset pricing models. Modern portfolio theory. Bonds and interest rates. Forwards, futures and options. Working capital management. The structure and performance of the money management industry. Pension funds, mutual funds and hedge funds.