Applied Financial Instruments

Durée

45h Th

Nombre de crédits

Enseignant

Julien Hambuckers

Coordinateur(s)

N...

Langue(s) de l'unité d'enseignement

Langue anglaise

Organisation et évaluation

Enseignement au deuxième quadrimestre

Horaire

Horaire en ligne

Unités d'enseignement prérequises et corequises

Les unités prérequises ou corequises sont présentées au sein de chaque programme

Contenus de l'unité d'enseignement

The 'Applied Financial Instruments' course provides an introduction to theory and empirical methods that play an important role in finance. We cover selected topics in asset pricing (portfolio theory, capital asset pricing model,...), fundamental analysis (bond pricing, discounted cash flow) and management decision-making (Net Present Value and investment decisions,  asset and liability management, sensitivity analysis, ...) and related fields. 
The course is structured in two parts:
Part I: Asset pricing and portfolio analysis  
Part II: Fundamental analysis and applied tools in corporate finance
A Part 0 will review fundamental concepts in statistics, like random variable, distribution, and regression model. 
The course consists in a set of lectures where the financial concepts are introduced and discussed. Particular attention will be dedicated to the limitation of these concepts in real-life applications. Then, these concepts will be used in exercise sessions. Exercises will consists in investment decision, portfolio optimization and corporate valuation problems. 

Acquis d'apprentissage (objectifs d'apprentissage) de l'unité d'enseignement

The course provides students with a deep understanding of fundamental concepts used in finance disciplines such as market finance and corporate finance. Through the exercise sessions, students will develop analytical and modeling skills in finance as well as strengthen their communication skills in English. In particular, students will improve their skills in empirical analysis - competences that will turn out to be crucial not only for group and individual tasks to be delivered throughout their master studies but as well for the empirical work of their master thesis.

This course contributes to the following Intended Learning Outcomes : 
ILO-6: being able to use accounting, mathematical, statistical and IT tools to solve a management problem
ILO-7: being able to conduct research autonomously and methodically to obtain the information needed to solve this problem using a critical approach 
ILO-9 : being able to work within a team 

Savoirs et compétences prérequis

Fundamental knowledge of financial markets, financial mathematics, statistics and programming.
Good grades or understanding of the concepts seen in courses like "Probabilité et inférence statistique" and "Marchés Financiers" are expected
Students who need to acquire the prerequisites for the financial part are invited to read the following chapters:
- Basics in financial markets: working knowledge of key concepts like risk and return as well as of the capital asset pricing model and the asset pricing theory. Please read Chapters 10 to 13 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition.
- Accounting statements and cash flows: working knowledge of key financial statements, i.e. income statement, balance sheet and cash flow statement. Please read Chapters 2 and 3 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition;
- Basics in capital budgeting: working knowledge of discounting/compounding. Please read Chapter 4 - Ross, Westerfield and Jaffe. 2008. Corporate Finance. New York: McGraw-Hill, 8th edition;

Activités d'apprentissage prévues et méthodes d'enseignement

The course is structured along two lectures per week: 3 hours lecture and 2 hours technical tutorial classes.

Mode d'enseignement (présentiel, à distance, hybride)

Lectures (around 15 hours) and exercise sessions (around 30 hours).

Adaptations organisationnelles liées au contexte sanitaire

Lectures recommandées ou obligatoires et notes de cours

Book chapters and scientific articles will be announced during the class.
  

Modalités d'évaluation et critères

Vous trouverez ci-dessous les modalités d'évaluation envisagées pour les examens en présentiel et à distance ainsi que celle souhaitée en cas de session hybride. En fonction de l'évolution sanitaire, la modalité choisie vous sera communiquée au plus tard un mois avant le début de la session d'examen.

Session de juin :

- En présentiel

évaluation écrite ( QCM, questions ouvertes )

- En distanciel

évaluation écrite ( QCM, questions ouvertes )

- Si évaluation en "hybride"

préférence en distanciel

Session de août-septembre :

- En présentiel

évaluation écrite ( QCM, questions ouvertes )

- En distanciel

évaluation écrite ( QCM, questions ouvertes )

- Si évaluation en "hybride"

préférence en distanciel


Explications complémentaires:

Written exam, mixing exercises similar to the ones seen during the exercise sessions, and explanation of theoretical concepts and cases seen during the lecture, counts for 60% of the final grade.
Exercises to be completed every session at the latest 24h after the course (per group) and posted on LOLA will count for 30%. 
Participation to to a datacamp count for 10%.
For both sessions, the exam takes place on ECampus. However, if the situation allows it in August, the second session will take place in the university building (although still via ECampus)

Stage(s)

Remarques organisationnelles

Contacts

Julien Hambuckers, PhD (professor)
Rue Louvrex, 14, 4000 Liege
email: jhambuckers[at]uliege.be
 
George Broché, CFA (teaching assistant)
email: pg.broche[at]uliege.be
 

Notes en ligne