Foundations of Finance and Financial Technology
Aims
The aim of this module is to provide students with the foundations of finance theory. This will be achieved through the development of a common vocabulary and a set of tools that will assist students to gain a basic understanding of the theory of modern finance. Additionally, the course will provide an introduction to the functions that comprise Fintech, such as blockchain, cryptocurrencies, alternative lending, machine learning, and robo-advising. It will lay the foundations for the specialist courses that follow.
Learning Outcomes
On completing this module, students will:
- Understand the basic principles in modern finance theory;
- Be able to implement theoretical knowledge and formulas in everyday managerial problems;
- Apply acquired knowledge in setting out capital budgeting problems;
- Assist decision making with regard to investment and capital expenditure problems;
- Comprehend the implications of risk in capital markets;
- Understand the principles of portfolio theory and asset pricing;
- Have an overview about technology innovations and their application in banking and finance;
- Understand have cryptocurrencies and new payment services;
- Be familiar with the functioning and contribution provided to non-financial corporation alternative lending, as P2P lending, crowdfunding.
Content
The module aims to develop practical skills and this requires substantial time in practising with problems, exercises, quizzes and other such learning drills.
- Agency Problems and Corporate Governance
- Time value of money
- Bond Valuation
- Term Structure of Interest Rates
- Stock Valuation
- Investment Decision Rules
- Making Investment Decisions with the Net Present Value Rule
- Portfolio Theory
- Capital Asset Pricing Model
- Fintech innovation and financial markets
- Fintech, financial intermediation and peer-to-peer lending
- Cryptocurrencies and other digital asset investments