TrainingsDE 2ème/3ème cycleDESU Magistère Ingénieur EconomisteCoursesFinance

DESU Magistère Ingénieur EconomisteUE Finance

Content

The main aim of the course is to provide the students with fundamentals in finance theory. The course is taught at an intermediate level as it does not require good prior knowledge in risk theory or financial markets. Basics in financial products and discounting theory may help to understand the course and are therefore required. The course is self-contained as the students do not need to go through bibliographical references or textbooks to understand the taught materials. Nevertheless, a reading list is provided below to allow the students to improve their knowledge and their understanding of the different chapters seen during classes. The course is divided in 6 chapters with most of them dedicated to market finance. The last chapter is an introduction to corporate finance and its most important topic, namely the capital structure of the firm.

Course overview :

1 Risk theory

1.1 Risk aversion, risk premium in an EU framework

1.2 Portfolio choice in an EU framework

2 Portfolio choice theory

2.1 A two risky assets example

2.2 The general formulation for n risky assets

2.3 Introduction of a riskless asset

2.4 M-V analysis

3 Equilibrium models : CAPM and APT

3.1 Arbitrage pricing

3.2 CAPM

3.3 APT

4 Equilibrium portfolio choices

4.1 Managing with CAPM and APT

4.2 Portfolio performance measure

5 Market efficiency and behavioural finance

5.1 Market efficiency

5.2 Behavioural biases in financial decision making

6 Topics in corporate finance : on the capital structure of the firm

6.1 Debt and the firm value

6.2 CAPM and Corporate Finance

6.3 Payout policy

Professional skills

Basic knowledge in financial theory.

Language used

Main language used by this course: Anglais.

Bibliography

  • Berk, J., DeMarzo, P., 2011. Corporate Finance. Second Edition, Pearson.
  • Danthine, J.-P., Donaldson, J.B., 2005. Intermediate Financial Theory. Academic Press Advanced Finance Series, Elsevier.
  • Elton, E.J., Gruber, M.J., Brown, S.J., Goetzmann, W.N., 2011. Modern Portfolio Theory and Investment Analysis. Eighth Edition, Wiley.
  • Kast, R., Lapied, A., 2006. Economics and finance of risk and of the future. Wiley.

Recommended prerequisites

Basic knowledge in financial products (stocks, bonds)

Basics in mathematical finance (discounting)

Structure and organisation

Lectures : 36H, tutorials : 12H. Controls : exercises concerning the tutorial (1/3) and questions about the lectures (weight 2/3).

THE TRAININGS WHICH USE THIS COURSE