FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
STRUMENTI FINANZIARI E GESTIONE DEL RISCHIO
| A.Y. | Credits |
|---|---|
| 2023/2024 | 8 |
| Lecturer | Office hours for students | |
|---|---|---|
| Germana Giombini |
| Teaching in foreign languages |
|---|
|
Course with optional materials in a foreign language
English
This course is entirely taught in Italian. Study materials can be provided in the foreign language and the final exam can be taken in the foreign language. |
Assigned to the Degree Course
| Date | Time | Classroom / Location |
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| Date | Time | Classroom / Location |
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Learning Objectives
The course aims at comprehending and mastering concepts as diverse as uncertainty, economic risk, and the functioning of the main financial tools required to protect economic agents' risk exposure. In the first part of the course, basic notions about the theory of expected utility and risk aversion will be introduced with the aim of comprehending how rational individuals make optimal decisions under uncertainty. In the second part, this method will be applied to study how investors optimally choose financial assets and construct efficient portfolios. The second part's objective is to understand the main financial models, such as the Capital Asset Pricing Model, their empirical estimation, using financial data, as well as their limits, through the analysis of the event studies. In the last part, the main financial tools will be analyzed using the conceptual framework introduced in the previous two parts. Futures, derivatives, options, and bonds will be analyzed.
Program
PART I: Risk and uncertainty
1. Expected utility
2. Risk aversion
3. Choice under uncertainty
PART II: Financial markets: models and estimators
4. Stock markets and portfolio choice
5. Mean-variance
6. Capital Asset Pricing Model (CAPM)
7. CAPM estimators
8. Arbitrage
9. Market efficiency and abnormal returns: Event study
PART III: Main financial instruments
10. Futures and derivatives
11. Options
12. Bonds
Bridging Courses
BASIC MATHEMATICS AND STATISTICS if it is present in the study plan
POLITICAL ECONOMICS if it is present in the study plan
Learning Achievements (Dublin Descriptors)
- Knowledge and comprehension capability of concepts of uncertainty, risk, and of the main financial models and estimators.
- Knowledge and comprehension capability tested in class through the discussion of specific cases and exercises on Microsoft Excel.
- Self-judgement: the student shall be able to comprehend, analyze, and compare complex real-life cases and to apply the new tools.
- Communication skills: the student shall be able to comprehend and use the financial jargoon
- Comprehension capability: the student will be able to develop cognitive models to be used in the future experience in the job market.
Teaching Material
The teaching material prepared by the lecturer in addition to recommended textbooks (such as for instance slides, lecture notes, exercises, bibliography) and communications from the lecturer specific to the course can be found inside the Moodle platform › blended.uniurb.it
Supporting Activities
Microsoft Excel exercises will be presented and discussed in class. Seminars.
Teaching, Attendance, Course Books and Assessment
- Teaching
Teaching will be supported by presentation slides and Microsoft Excel worksheets.
- Attendance
Constant attendance is recommended, but not mandatory
- Course books
Simon Benninga and Tal Mofkadi. Financial Modeling, Fifth Edition. MIT Press
- Assessment
Written and subsequent oral examination. The examination is held on the same day. The written examination consists of five theoretical open questions. The time available to complete the test is one hour. After the written test has been corrected, any oral and recorded examinations take place.
The evaluation criteria are: the level of mastery of the theoretical knowledge, graphic, mathematical and analytical tools used; the degree of articulation of the answer; the degree of adequacy of the explanation; the degree of accuracy of the graphic and analytical analysis.
- Disabilità e DSA
Le studentesse e gli studenti che hanno registrato la certificazione di disabilità o la certificazione di DSA presso l'Ufficio Inclusione e diritto allo studio, possono chiedere di utilizzare le mappe concettuali (per parole chiave) durante la prova di esame.
A tal fine, è necessario inviare le mappe, due settimane prima dell’appello di esame, alla o al docente del corso, che ne verificherà la coerenza con le indicazioni delle linee guida di ateneo e potrà chiederne la modifica.
Additional Information for Non-Attending Students
- Teaching
Same program of the attending students.
- Attendance
Same program of the attending students.
- Course books
Same program of the attending students.
- Assessment
Same modalities of the attending students.
- Disabilità e DSA
Le studentesse e gli studenti che hanno registrato la certificazione di disabilità o la certificazione di DSA presso l'Ufficio Inclusione e diritto allo studio, possono chiedere di utilizzare le mappe concettuali (per parole chiave) durante la prova di esame.
A tal fine, è necessario inviare le mappe, due settimane prima dell’appello di esame, alla o al docente del corso, che ne verificherà la coerenza con le indicazioni delle linee guida di ateneo e potrà chiederne la modifica.
Notes
Erasmus students can request to sit the final exam in English with an alternative bibliography to be defined with the professor.
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