Contactar Esade

Fundamentos de Mercados Financieros (BBA30003)

General information

Type:

OB

Curs:

2

Period:

S semester

ECTS Credits:

6 ECTS

Teaching Staff:

Group Teacher Department Language
Sec: A Santiago Forte Arcos Economía, Finanzas y Contabilidad ESP

Group Teacher Department Language
Sec: B Santiago Forte Arcos Economía, Finanzas y Contabilidad ESP

Group Teacher Department Language
Sec: C Santiago Forte Arcos Economía, Finanzas y Contabilidad CAT

Prerequisites

Core and compulsory courses in Accounting and Financial Analysis, Mathematics, Statistics and Economics.

Previous Knowledge

Geometric series, limits, derivatives, Taylor expansion and basic statistical concepts (mean, variance, and correlation coefficient)

Workload distribution

Workload distribution:
Lectures: 33 hours
Participatory sessions: 27 hours
Independent study: 87 hours
Exams: 3 hours

COURSE CONTRIBUTION TO PROGRAM

Financial markets serve as the framework to balance the supply and demand of the economy's available financial resources. Given that any economic activity requires financing, knowing how those financial markets as well as the assets negotiated within them work is a cornerstone of the education of any Business Administration undergraduate degree programme.

Course Learning Objectives

Upon completing this course students should be able to:
- Identify the basic characteristics of the range of financial instruments.
- Evaluate the range of financial instruments.

Competences

3. Taking decisions / making judgments
1. Knowledge acquisition, comprehension and structuring
6. Strategic thought, systematic thought

Relation between Activities and Competences

3 1 6
Lectures      
Practical exercises      
Final exam      

CONTENT

1. Financial mathematics

1.1. Introduction: Basic concepts; 1.2. Types of financial laws; 1.2.1. Simple capitalisation and discounts; 1.2.2. Compound capitalisation and discount; 1.3. Income; 1.3.1. Classification; 1.3.2. Valuation ; 1.4. Inflation; 1.5. Fractional capitalisation of interest; 1.6. Loan amortisation; 1.7. Investment selection criteria: NPV, IPR, Payback; 1.7.1. Net Present Value (NPV) criteria: The criterion: 1.7.2. Payback criteria; 1.7.3. Internal Profit Rate (IPR) criteria

2. Fixed income

2.1. Introduction; 2.2. Fixed income profit; 2.2.1. Internal Profit Rate (IPR): The yield curve; 2.2.2. Temporal Structure of Interest Rates: TSIR; 2.2.3. Forward types; 2.3. Valuation; 2.4. Risk measures; 2.4.1. Duration; 2.4.2. Convexity; 2.5. Corporate fixed income

3. Portfolio theory

3.1. Asset return and risk; 3.2. Portfolio return and risk; 3.3. Diversification effect; 3.4. Efficient portfolios: the Markowitz model; 3.5. Generalisation of the Markowitz model: the risk-free asset; 3.6. Estimation of the efficient frontier; 3.7. Capital Asset Pricing Model (CAPM); 3.7.1. Market equilibrium: Capital Market Line; 3.7.2. Asset equilibrium: Security Market Line; 3.8. The CAPM and valuation of Variable Income: The dividend method; 3.9. Practical problems of CAPM implementation

4.

Relation between Activities and Contents

1 2 3 4
Lectures        
Practical exercises        
Final exam        

Methodology

ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Practical exercises 25
Final exam 75

Assessment criteria

First sitting of the final exam: in addition to an average overall mark of 5 out of 10, students must earn a mark of no less than five during the first sitting of the final exam to pass the course.

The criteria used to determine students' final marks is as follows:
If students' average marks prior to the final exam and their marks on the final exam are both above 5, the average of the two marks will be their final marks for the class. Contrarily, the lower of the two marks will be their final mark for the class.

Resitting the final exam: The mark achieved on the re-sit exam will represent 100% of students' final marks.

Bibliography

Short bibliography:
Class material.

Additional bibliography and material:
- Bodie, Kane and Marcus, Investments, McGraw-Hill, 2011.
- Brealey-Myers, Principios de Finanzas Corporativas, McGraw-Hill, 2003.
- Fabozzi, Fixed Income Mathematics., McGraw-Hill.
-Miner, Curso de Matemática Financiera, McGraw-Hill, 2003.
-Ross, Westerfield, Jafee, Finanzas Corporativas, Irwin, 1999.

Timetable and sections

Group Teacher Department
Sec: A Santiago Forte Arcos Economía, Finanzas y Contabilidad

Timetable Sec: A

From 2018/2/7 to 2018/3/8:
Each Thursday from 11:00 to 14:00.
Each Wednesday from 8:00 to 11:00.

From 2018/4/4 to 2018/5/3:
Each Thursday from 11:00 to 14:00.
Each Wednesday from 8:00 to 11:00.

Group Teacher Department
Sec: B Santiago Forte Arcos Economía, Finanzas y Contabilidad

Timetable Sec: B

From 2018/2/7 to 2018/3/8:
From Wednesday to Thursday from 14:00 to 17:00.

From 2018/4/4 to 2018/5/3:
From Wednesday to Thursday from 14:00 to 17:00.

Group Teacher Department
Sec: C Santiago Forte Arcos Economía, Finanzas y Contabilidad

Timetable Sec: C

From 2018/2/7 to 2018/3/8:
Each Wednesday from 11:00 to 14:00.
Each Thursday from 8:00 to 11:00.

From 2018/4/4 to 2018/5/3:
Each Wednesday from 11:00 to 14:00.
Each Thursday from 8:00 to 11:00.