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| FINA0070-2 | Finance and insurance principles
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| Duration : | 30h Th |
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| Number of credits : |
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| Lecturer : | Marie Lambert |
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Language(s) of instruction :
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| French language |
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Organisation and examination :
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| Teaching in the first semester, review in January |
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Course contents :
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| What is Finance? What is the role of financial markets in providing capital? How does the financial system operate? What role do financial intermediaries such as banks, insurances and investment funds have? These are the main questions that will be addressed by the Finance and Insurance Principles class.
The Finance and Insurance Principles class lays the theoretical foundations for answering the following questions:
o In the "Financial markets" field - What are the available financial products and what are their underlying risks? How to value bonds/stocks? What return can be expected from investments in the financial markets?
o In the "Corporate Finance" field - How to value an investment project? How could we optimally allocate corporate financial resources amongst several investment opportunities?
o In the "Insurance" field - What are the basic concepts in the insurance business? How to value risks implied in the insurance business and how do insurers deal with it?
The course will be organized in 2 parts. Part 1 introduces the basics of financial mathematics, of financial markets as well as risk management. Part 1 is structured in 2 modules. The first module introduces the time-value-of-money concept with the principles of capitalization and actualization, the distinction between simple and compounded interest rates. The second module introduces the concept of risk-adjusted return. Students will be introduced to portfolio management and capital asset pricing model.
Part 2 apply the concepts covered in models 1 and 2:
o Asset valuation (stocks, bonds)
o Portfolio management and performance analysis
o Investment project valuation and capital budgeting decisions
o Relationships between finance and insurance - actuaries are said to be risk "engineers" |
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Learning outcomes of the course :
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| At the end of the course, students will
- acquire the fundamental knowledge and understanding in financial management to perform a rigorous analysis of management problems such as financial investment decisions, capital budgeting decisions and insurance management.
- be able to solve autonomously concrete complex and transversal financial management problems in Market Finance, Corporate Finance and Insurance Management.
This course contributes to the following Intended Learning Outcomes :
ILO-1 : To strengthen knowledge and understanding of management disciplines and its legal, policy and social context
ILO-2 : Gaining the knowledge and understanding of one of the proposed fields of concentration or to gain deep knowledge in the field of the management being already specialized thru a first University Master Degree .
ILO-4 : To acquire the capacity to research autonomously and methodically the information needed to solve a complex, transversal management problem
ILO-6: Integrate autonomously researched information, tools, knowledge and context to build and propose, either individually or as part of a team, original, creative and viable solutions to concrete complex management problems whether real or simulated. |
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Prerequisites and co-requisites/ Recommended optional programme components :
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| Statistics and probability |
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Planned learning activities and teaching methods :
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| The course will be structured into lectures, discussions around key financial management issues and exercise sessions.
Lectures will transfer to students the theoretical knowledge and the practical tools for solving complex financial management problems.
Exercise sessions will allow students to apply the tools learnt during the course on a selection of financial management problems.
Workshops with practitioners will illustrate the key financial management problems addressed throughout the class. |
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Mode of delivery (face-to-face ; distance-learning) :
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| The course is held on Saturdays and Wednesdays in September and November.
The course starts on September 20th 2014. |
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Recommended or required readings :
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| Recommended readings:
- Pierre Vernimmen - Finance d'entreprise, Pascal Quiry et Yann Le Fur, 2012, Edition Dalloz
- Mathématiques et gestion financière - Applications avec exercices corrigés, Octave Jokung Nguéna, Edition de Boeck
- Aswath Damodaran, Pratique de la finance d'entreprise, De Boeck
These readings will enable students to deepen their understanding of the key concepts seen throughout the course. Students' understanding will be tested at the written exam.
The course material (slides, exercises) will be available on the course web page on lol@. |
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Assessment methods and criteria :
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| A written exam organized in January/February will assess students' understanding of the theoretical concepts as well as students' capacity to solve financial management problems.
Two sessions are organized.The first session exam is scheduled in January/February and the second session exam in August/September. The students who could not present the exam for medical or professional reasons are asked to present a certificate at the "apparitorat". |
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Work placement(s) :
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| none |
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Organizational remarks :
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| Active class participation is recommended for a good preparation to the exam. Students are invited to ask questions on the material during the class and at the end of each session. Students are invited to contact Joachim Davoli should they need further explanation.
Students are invited to check the lol@ platform on a regular basis for any practical information regarding the course. |
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Contacts :
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Marie Lambert - Chargée de cours en Corporate Finance - marie.lambert@ulg.ac.be
Tuteur : Joachim Davoli (Assistant) - joachim.davoli@ulg.ac.be
(Joachim.Davoli@student.ulg.ac.be) |
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| Items online : |
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| Slides and exercises |
| Slides and exercises are available under "documents" on lol@ platform. |
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