Learning Outcomes
On completion of the course, students will be able to:
- understand the role of the capital market in the economy and the fundamental principles of corporate finance
- evaluate investment decisions by applying various investment assessment methods
- evaluate financial assets, such as stocks, bonds, and options, using financial instrument pricing models
- examine the relationship between risk and return and apply principles of portfolio diversification to optimise financial investment decisions
- analyse the cost of capital and evaluate capital structure decisions and their impact on a firm’s value
- evaluate and perform simple financial analyses.
Course Content
The course introduces basic knowledge in financial economics with tools for analysing financial decisions. It addresses the basics of corporate finance, valuation of risky cash flows, evaluation of corporate investment projects, asset pricing theories, and models for pricing stocks and bonds. The course also includes portfolio theory, the theory of efficient markets, capital structure, and options. Theoretical concepts are combined with practical applications.
Assessment
- Written examination
- Assignments
Grades
The grading scale used for the final course grade is U–VG.
Grades are reported as follows:
- Financial Economics - 7.5 Credits | U–VG
Entry Requirements
- Statistics 7.5 credits or Microeconomics 7.5 credits and Macroeconomics 7.5 credits
Other Information
There are a maximum of five examination sessions.
Overlaps NA1003
This course cannot be counted towards the same degree along with courses that have equivalent content.
If the student has received a decision/recommendation granting study support from Dalarna University because of a disability, then the examiner has the right to offer an alternative examination arrangement. The examiner takes into account the objectives in the course syllabus when deciding whether the examination can be adapted in accordance with the decision/recommendation.