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2015/2016  BA-BMATO1278U  Finance

English Title
Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc/MSc in Business Administration and Management Science, BSc
Course coordinator
  • Desi Volker - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 17-08-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: The purpose of this course is to provide the students with a broad knowledge of the central areas of finance and equip them with the necessary analytical tools and practical skills for analyzing financial issues. The subject builds on basic teaching from previous business and economics courses.

By the end of the course students should be able to:
• understand and communicate the central concepts and theories of Finance in a clear and coherent language using the correct terminology.
• use the appropriate analytical tools and methods to independently solve the written assignments and analyze relevant issues within the main topics of the subject.

Important indications:
• when solving the assignments and the written exam, it is crucial to maintain consistency in relation to the stated assumptions, as well as mathematical clarity and precision.
Examination
Finansiering:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Autumn and Winter
Aids allowed to bring to the exam Limited aids, see the list below:
  • Written sit-in-exam with pen and paper
  • Written sit-in-exam on CBS' computers
  • Books and compendia brought by the examinee
  • Notes in paper format brought by the examinee
  • Access to personal drive (S-drive) on CBS' network
  • USB key to upload your notes before the exam
  • Access to all information on CBSLearn
  • Own PC or Ipad as a reference book (NB there is no power supply available)
  • Additional allowed aids, please see the list below
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure

 

The exam can be handed in print or hand-written on paper. 
The examinee may bring his/her own calculator, provided it has no communication module as it is not allowed to communicate with fellow examinees.
Course content and structure

Bonds and the term structure of interest rates:
Fixed income securities, bond markets, spot and forward rates, the yield curve and the term structure of interest rates, interest rate risk management

Portfolio Theory:
Expected return vs. risk trade off, benefits of diversification, efficient frontier (without and with a risk-free asset), optimal portfolio choice, Sharpe ratio, CAPM, APT and other multi-factor models

Financial Derivatives:
Call and put options, forwards and futures contracts, interest rate swaps, the binomial model, Black-Scholles, Merton model
Teaching methods
Preparation for class
97 SAT
Class hours
68 SAT
Examination
40 SAT
Expected literature

“Fixed Income Securities”, Pietro Veronesi,  2010, Wiley

Instructor’s notes and slides
 
Additional literature
”Lecture Notes for Finance 1 (and more)”, David Lando & Rolf Poulsen,  Chapter 9
(available for download as PDF)
Last updated on 17-08-2015