Principles of Finance

The course will begin with an introduction to financial markets and institutions. Students will learn about financial decision-making through the law of one price and explore the time value of money, including simple and compound interest and discounting methods. The course also covers net present value (NPV), perpetuities, and annuities. Additionally, students will study how to value bonds and equities and examine the trade-off between risk and return.

Bibliographic references:

Corporate Finance by Jonathan Berk and Peter DeMarzo (5th edition or later)

Fundamentals of Corporate Finance by Richard A. Brealey, Steward C. Myers, and Alan J. Marcus (11th edition)

This course provides a broad understanding of basic principles in finance and is designed for students from all majors. By the end of the course, students will have a solid foundation to make informed financial decisions in various contexts.

In presence

Each week will consist of a lecture and a tutorial. The lectures will introduce key financial concepts and theories, while the tutorials will focus on solving problem sets from the textbooks and applying the lecture material to practical exercises. This structure reinforces learning and ensures a solid understanding of the topics covered.

• Written exam: 80%
• Problems sets: 20%