| Faculteit | Economie en Bedrijfskunde |
| Jaar | 2022/23 |
| Vakcode | EBB133A05 |
| Vaknaam | Asset Pricing for Pre-MSc &Minor Finance |
| Voertaal | Engels |
| Periode | semester I a |
| ECTS | 5 |
| Uitgebreide vaknaam | Asset Pricing for Pre-MSc and Minor Finance | ||||||||||||||||
| Leerdoelen | Upon completion of the course the student is able to: 1. Characterise the assets through which corporations can raise funds, and explain the terminology and conventions used in the financial markets, where these assets are traded. 2. Describe and explain the relationships between cash flows, yields and bond prices, and use these relationships to answer questions relevant to corporations and investors 3. Describe and explain various stock pricing models, such as the dividend-discount model, and use these models to answer questions relevant to corporations and investors. 4. Describe and explain modern portfolio theory as well as the Capital Asset Pricing Model, and use these theoretical frameworks to answer questions relevant to corporations and investors. 5. Describe and explain various option pricing models (e.g. binomial model and Black-Scholes model), and use these models to answer questions relevant to corporations and investors. 6. Make a well-founded decision about whether or not to apply for a position in the field of finance or to enroll for a master programme in this field. |
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| Omschrijving | Asset Pricing is a course about the financial assets through which corporations can raise funds, and particularly about the valuation of these financial assets. The course first sets the scene by describing ownership and control characteristics of corporations, and how these relate to their financing. Subsequently, it elaborates on valuing financial assets. For this purpose, the time value of money, interest rates (or yields) and the valuation of bonds are discussed. Also stock valuation models will receive ample attention. In addition, modern portfolio theory and the Capital Asset Pricing Model will be introduced and used to explain expected returns. A final issue will be the valuation of financial options, using both the binomial option pricing model and the Black-Scholes option pricing model. A central theme throughout the course will be the law of one price, which dictates that equivalent investment opportunities must trade for the same price in all markets. This law will be presented as one of the corner stones of valuation. | ||||||||||||||||
| Uren per week | 3 | ||||||||||||||||
| Onderwijsvorm | -hoorcollege , -werkcollege | ||||||||||||||||
| Toetsvorm | -schriftelijk tentamen (open vragen) | ||||||||||||||||
| Vaksoort | bachelor | ||||||||||||||||
| Coördinator | dr. S. Tillema | ||||||||||||||||
| Docent(en) | dr. ing. N. Brunia ,dr. S. Tillema | ||||||||||||||||
| Verplichte literatuur |
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| Opmerkingen | Coordinator: Dr Sandra Tillema, e-mail s.tillema@rug.nl Secretary Grietje Pol, phone +31(0)50 3633685, e-mail g.pol@rug.nl, room: 5411.0836 |
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