This course introduces the application to financial decision-making of mathematics, statistics, economic theory, and accounting procedures. The two central ideas are time value of money and the relationship between expected return and risk, and how these ideas are used to value bonds, stocks, and other financial securities, and to make capital investment decisions.
- Understand the time value of money.
- Be able to analyze and evaluate investment projects.
- Understand the principles of asset pricing and be able to price some financial assets, such as stock and bond.
- Understand the trade-off between risk and return and be able to estimate a fair return.