Finance Course GFSSC Outline

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Imperial College Business School Summer School Programme

Course Content Outline - Finance


Course title: Finance
Academic Director: Dr. Katja Ahoniemi, Assistant Professor of Finance
Category: Finance
Code: GFSSC
Direct contact hours: 66 direct hours of contact time (lectures and classes)
Academic level: Advanced and equivalent to a final year undergraduate course
Suggested credit level: 3 - 4 US credits / 7 ECTSs*
*A students home institution will determine how much credit is awarded.

Entry requirement: A level maths or equivalent

Course Aims
This course will provide an overview of the concepts in finance, together with a thorough
examination of the key elements of todays financial markets. Taught by Imperials leading
finance faculty as well as practitioners, it will provide you with the ability to put the latest
academic thinking and business strategies into practice.
Topics covered

Financial markets and instruments


Interest rates and fixed income
Asset pricing
Corporate finance
Forecasting and scenario analysis
Venture capital and private equity
Derivative instruments
Asset Management
Hedge funds
Regulation and financial crises
Behavioural finance

Course Objectives
Knowledge

Comprehensive understanding of financial instruments such as bonds, equities, etc.


Valuing risky cash flows
Bond yields
Portfolio selection
Capital Asset Pricing Model(CAPM)
Capital structure and payout policy
Financial statement analysis and equity valuation
Venture capital and private equity
Introduction to derivative instruments
Asset management industry and hedge funds

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Dr. Katja Ahoniemi, Academic Course Director


10 March 2014

Challenges faced by financial regulators


Background to recent financial crises
Introduction to behavioural finance

Skills

Development of critical reasoning skills


Understanding of global finance in a practical context
Ability to utilise financial techniques to analyse issues in finance

Learning Outcomes
By the end of the course students will be able to:

Demonstrate knowledge of fundamental finance theories and models and their use and
context in real financial markets
Understand the financial decisions of corporations
Analyse economic and financial data and evaluate investment decisions
Understand the principles of equity and bond valuation

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Dr. Katja Ahoniemi, Academic Course Director


10 March 2014

Teaching Schedule
Week 1

Week 2

Week 3

Lecture

5 x 3 hour

5 x 3 hour

4 x 3 hour

Tutorial

5 x 2 hour

5 x 2 hour

2 x 2 hour

Examination

1 x 2 hour

In addition to the above, students are expected to complete over 30 hours of private study and
exam preparation work.

Teaching Methods
The course will be delivered by a mix of face-to-face lectures and classes. Lecture content and
class material will be made available through an interactive online teaching and learning hub
The Summer School Hub.
Each lecture will be followed by a supporting class which will use case studies, structured
discussions and in-class exercises to demonstrate the application of concepts delivered in faceto-face lectures.
In addition there will be a guest speaker programme with presentations from high profile financial
institutions to put the course material into a practical context.

Assessment

1 Final individual exam (100%, multiple choice format)

Imperial College London will issue a transcript record of attendance and assessment
performance.

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Dr. Katja Ahoniemi, Academic Course Director


10 March 2014

Course Structure
Week 1
30 June 2014

Foundations of Finance and Asset Pricing

Lecture
1

Introduction to financial markets and financial


instruments

Interest rates and fixed income valuation

Quantitative methods

Diversification and portfolio choice

Modelling asset returns

Week 2
7 July 2014

Asset Pricing and Corporate Finance

Lecture
6
7
8

Return predictability in practice


Corporate investment decisions and raising
capital
Equity valuation, venture capital, and private
equity

Capital structure and payout policy

10

Currency and commodity markets

Week 3
14 July 2014
Lecture

Class
Structured discussions
and in-class exercises
Structured discussions
and in-class exercises
In-class exercises and
guest speaker
Structured discussions
and in-class exercises
Structured discussions
and in-class exercises

Advanced Topics in Finance

11

Risk management and derivative instruments

12

Hedge funds and the asset management


industry

13

Regulation and financial crises

14

Behavioural finance

Examination

Class
Structured discussions
and in-class exercises
Structured discussions
and in-class exercises
Structured discussions
and in-class exercises
In-class exercises and
guest speaker
Structured discussions
and in-class exercises

Class
Structured discussions
and in-class exercises
In-class exercises and
guest speaker
Social programme
activity
NO CLASS

2 hour individual examination (closed book)

Selected Academic Sources

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Dr. Katja Ahoniemi, Academic Course Director


10 March 2014

The following are author references which are starting points for reading. Course tutors will
supply official course reading lists.
Key Foundation Texts

Bodie, Z., Kane, A. and Marcus, A.: Investments and Portfolio Management, Global
Edition (2011).
Berk, J. and DeMarzo, P.: Corporate Finance, Global Edition (2013).

Media Sources essential weekly reading

Times / FT / Economist all have online versions

Pastoral Support
A full welcome and orientation programme will be provided at the beginning of the programme.
The Business School will provide dedicated pastoral care. The Imperial College Students Union
will also welcome and engage with the Summer School Students.

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Dr. Katja Ahoniemi, Academic Course Director


10 March 2014

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