This course introduces the applications 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. The course also includes the optimal management of the firm's assets and financing requirements.
- Understand the principles of asset pricing and be able to price financial assets, such as stocks and bonds.
- Be able to analyze and evaluate investment projects.
- Understand the trade-off between risk and return and be able to estimate a fair return.
- Understand the optimal management of corporate assets and financing requirements.