Finansiell ekonomi, introduktion

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by 28 Feb 2007

by Director of Undergraduate Studies Bo Jonsson, Department of Business Administration, Technology and Social Sciences 18 Feb 2013

After completing the course the student should have the ability to:
a)    Describe the most important actors on the Swedish financial markets, describe how the trade of financial instruments in Sweden are organized and describe how an investor should do (in practice) if they want to buy or sell stocks.
b)    Graphically explain how investors choose an optimal portfolio.
c)    Understand the theory for efficient market.
d)     Value different financial instruments such as stocks, bonds, option and forwards.
e)    Identify and explain different sources of risk for financial instruments and to some extent deal with these risks.
f)    In a group work analyze financial information and present this in a written report.

This course provides knowledge that is useful both for you as an individual and in your professional role as an economist. This knowledge is also useful when you want to enter the stock market, irrespective of whether you want to speculate and take great risks or if you are careful and want to build long term savings. Knowledge about financial instruments also becomes more important in business as deregulations, globalization and demand for certification of financial companies increase. This might be the case regarding insurance of currency transactions in an export company or your role as advisor/stock broker in a bank or stock brokerage firm. This course is ideal for those who do not have any experiences of stocks, but is also suited for those who already own stocks.

The following areas will be included:
•    Different actors on Swedish financial markets and Financial trading.
•    How we graphically by using Markowitz portfolio theory and the Capital Asset Pricing Model (CAPM) can show how investor chose optimal portfolios.
•    An introduction to efficient markets.
•    Discounting
•    Stock valuation
•    Sources of risk and the importance of diversifying.
•    Bond valuation.
•    Interest risk.
•    Identification of factors that influence the value of option and forwards.
•    An introduction how we could use option and forwards for speculation or for insurance.

The teaching will be in the form of lectures and a number of voluntary seminar sessions where students present and discuss problems dealing with the course's various areas. Furthermore the students will carry out a written assignment (investment project) covering 1.5 credits.

The course ends with a (individual) written exam covering the content of the course equivalent to 6 credits. The exam is given the grades VG (passed with honor), G (passed) or U (failed). The written exam examines mainly targets a-e above.

Furthermore the students will carry out a written assignment covering 1.5 credits. Concerning the assignments, grading will be Pass (G) or Fail (U) only. The written assignment examines mainly target f.

The grades of the (individual) written exam will determine the final grade of the course.

Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than five days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.

Undergraduate level, progression A. The course is only given in Swedish.

Olle Hage - Senior Lecturer

Gavelin, L. & Sjöberg, E. Finansiell ekonomi i praktiken, Studentlitteratur, latest edition.

Department of Business Administration, Technology and Social Sciences

Olle Hage, olle.hage@ltu.se, 0920-49 23 36

Study guidance for the course is to be found in Fronter two weeks before the course starts. Students applying for single subject courses get more information in the Welcome letter.