Duration
40h Th, 15h Pr
Number of credits
| Extra courses intended for exchange students (Erasmus, ...) | 5 crédits |
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the second semester
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
The goal of this course is to provide an introduction to the mechanics and economic characteristics of financial markets. This course serves as a basis for almost all subsequent advanced finance courses in corporate finance, portfolio management, banking and derivatives. The course will cover the following subtopics
- Introduction to financial markets
- Asset pricing models: CAPM, factor models, ESG-CAPM
- Efficient Market Hypothesis and Behavioural Finance
- Equity markets
- Debt markets
- Derivative markets
Learning outcomes of the learning unit
At the end of this course, students will be able to:
- Explain the benefits of combining assets in a portfolio
- Understand, explain, and synthetise simple asset pricing models (CAPM and factor models).
- Assess the validity of the efficient markets hypothesis
- Discuss how behavioural biases influence financial decisions
- Understand the functioning of the equity, debt and derivative markets
- Valuation of securities: equity, bonds, futures and options.
Prerequisite knowledge and skills
- Basics of Statistics: Arithmetic and geometric average, weighted average, expected
value, variance, standard deviation, covariance, correlation. - Basics of Financial Mathematics: simple and compound interest rates, present value of multiple cash flows, present value of an annuity, present value of a perpetuity.
- Basic notions in Macroeconomics and Microeconomics.
- Advanced written and oral communication skills in English.
Planned learning activities and teaching methods
- Frontal teaching
- Flipped classrooms
- Exercise sessions
Mode of delivery (face to face, distance learning, hybrid learning)
Face-to-face course
Further information:
- Face-to-face frontal teaching + flipped classroom (40h)
- Exercise Sessions (15h)
Course materials and recommended or required readings
Platform(s) used for course materials:
- LOL@
Further information:
- Required readings: Slides available on Lola
- Optional readings: Gitman & Joehnk, Fundamentals of Investing
Exam(s) in session
Any session
- In-person
written exam ( open-ended questions )
Continuous assessment
Further information:
The final grade will be determined by the following two parts:
Continuous Assessment (20%)
Group activity - You are asked to take the role of the teacher and explain a topic to your classmates (20 minutes). Each student must present.
Attendance (5%)
Final Written Exam (75%)
Open questions on the theoretical part and exercises.
Work placement(s)
Organisational remarks and main changes to the course
Examination regulations:
- no mobile phones or other electronic devices are allowed in the exam room.
- only the use of non-programmable caculators is allowed during the exam.
In case of breaching of these regulations, the lecturer reserves the right to dismiss students from the exam room and give them a score of 0/20.
Contacts
Lecturer:
Dr Caterina Santi
Office: 104 (Bat N1) - Rue Louvrex 14
E-Mail : Caterina.Santi@uliege.be
Teaching Assistant:
Lorren Mernier
E-mail: lorren.mernier@uliege.be
Association of one or more MOOCs
There is no MOOC associated with this course.