INTRODUCTION TO FINANCE
Updated A.Y. 2020-2021
(Last update Tuesday, January 19th 2021)
INTRODUCTION TO FINANCE
Prof. Gianni Nicolini, PhD
Prof. Lucrezia Fattobene, PhD
1. Contact Information and Office hours
Instructor: Prof. Gianni Nicolini, PhD (firstname.lastname@example.org)
Instructor: Prof. Lucrezia Fattobene, PhD (email@example.com)
Office hours: on appointment (to ask by email)
2. Aim of the course
The aim of the course is to analyze the structure and the functioning of a financial system, paying attention to its main components (Financial products and services, Financial Intermediaries, and Financial Markets). At the end of the course the students will know the key elements of the main financial products and services, will be aware about the functioning of the Financial Markets and Financial Institutions, and will be even able to assess an investment project (NPV, IRR), understanding the consequences of different financial management decisions.
3. Contents of the course
- Economics and Finance: basic concepts
- The Financial System
- The concept of Money
- The role of Central Banks in the Monetary system
- Banks and the Banking business
- Banking: the Credit Portfolio Management
- A Banks' classification
- The Payment system: the payment tools
(Included a section on Cryptocurrencies)
- Investing and Capital raising
- Financial products: Banks accounts
- Financial products: Mortgages
- Financial products: Bonds
- The Investment Decisions (NPV, IRR, etc.)
- Bond valuation
- Financial products: Stocks
- Stock Valuation
- Portfolio Theory and the Capital Asset Pricing Model (CAPM)
- Financial products: Mutual Funds and Pension Funds
(Included a focus on Behavioral Finance and Neuro-Finance)
- Investment Banking
- Risk Management
- Financial products: Derivatives
- Financial Markets
- Regulation and Supervision of the Financial System
- The Financial crisis
4. Course Materials
Ronald W. Melicher, Edgar A. Norton. "Introduction to Finance - Markets, Investments, and Financial Management" (15th edition). Wiley. (Chapters 1, 2, 3, 4, 7, 9, 10, 12, 17, 18)
Other materials (slides, readings, etc.) will be provided during the course and posted on the webpage of the course.
5. Class attendance
Class attendance is not mandatory (no monitoring activities of the class attendance will be done). However the teachers think that class participation can definitively helps students in their learning process.
6. Exam and Grading
The exam is a written test made by four parts. The first part includes a set of multiple choice questions. Parts 2, 3 and 4 can be open answer questions and/or exercises based on computational and decision making skills.
No oral exams are included.
No points are granted by class attendance.
No Midterm exams will be scheduled.
The dates of the exams are posted on line on the webpage of the course.
A detailed explanation of the exam procedures will be provided during the first class of the course and posted on the webpage of the course.