FINA Course Learning Objectives

FINA Course Learning Objectives
FINA 101: By the end of this course, students should be able to
C1 use spreadsheets to analyse financial data and evaluate simple financial models;
C2 describe the nature of real and financial assets;
C3 summarise and analyse information in a finance context;
C4 analyse the trade-off between risk and return;
C5 analyse simple problems involving personal financial decision making;
C6 analyse simple problems involving corporate financial decision making.
FINA 201: By the end of this course, students should be able to
C1 describe the theoretical underpinnings and use of the net present value method to value
bonds, shares and investments, in terms of (i) the time value of money (compounding &
discounting), (ii) the use of the market determined risk adjusted discount rate and (iii) the
determination of the relevant cash flows;
C2 explain the weaknesses of the alternatives to the NPV method;
C3 analyse capital structure theorems and their influence on value and risk;
C4 apply the above skills to determine the value of a proposed investment.
FINA 202: By the end of this course, students should be able to
C1 describe financial market microstructure, and explain why relevant institutions exist;
C2 describe the nature of real and financial assets, and explain asset portfolio choice;
C3 demonstrate an understanding of the theories explaining the term structure of interest
rates;
C4 analyse the role of utility functions and preferences for risk in the determination of
investment decisions;
C5 explain the logic of portfolio theory and the trade-off between risk and return;
C6 describe asset pricing models in the context of undiversified and fully diversified
portfolios;
C7 explain the implications of the efficient markets hypothesis for firms and investors;
C8 analyse the reasoning behind technical analysis and behavioural finance, and explain how
they challenge the classical theories of finance.
FINA 203: By the end of this course, students should be able to
C1 apply finance theory to analyse problems involving corporate financial decision making;
C2 apply finance theory to analyse problems involving personal financial decision making;
C3 build models using spreadsheets to analyse and interpret financial data;
C4 create structured analyses of proposed financial strategies.
FINA 211: By the end of this course, students should be able to
C1 describe the role of finance in business and explain how organisations are financed;
C2 analyse and discuss the investment appraisal and decision process;
C3 apply capital expenditure evaluation models including those using discounted cash flows,
NPV, IRR and payback periods;
C4 explain capital structure theories, estimate the cost of capital and explain its impact on
investments.
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FINA 301: By the end of this course, students should be able to
C1 demonstrate an understanding of corporate financial decision making from an advanced
perspective;
C2 analyse capital budgeting and capital structure decisions;
C3 explain and compare different approaches to project valuation;
C4 explain the role of taxes in the capital structure decision, and apply it in cost of capital
calculations;
C5 explain and analyse the role of bankruptcy risk in the capital structure decision;
C6 explain how to evaluate financial leases;
C7 explain how to assess merger and takeover proposals;
C8 articulate the role of taxes in the dividend decision.
FINA 302: By the end of this course, students should be able to
C1 explain exchange rate behaviour and the implications for corporate financial management;
C2 estimate models of exchange rate behaviour;
C3 use exchange rate models to hedge exchange rate risk;
C4 use exchange rate models to solve problems involving international portfolio choice.
FINA 303: By the end of this course, students should be able to
C1 articulate mathematical representation of finance theories;
C2 apply financial mathematics to the pricing and evaluation of insurance and derivative
securities;
C3 utilise financial mathematics to analyse credit risk, forwards, swaps and options;
C4 analyse the application of financial mathematics to evolving financial markets in modern
economies.
FINA 304: By the end of this course, students should be able to
C1 document properties of various types of financial data and analyse them with the
appropriate econometric tools;
C2 apply classical regression models to CAPM;
C3 apply extensions of classical regression models to finance;
C4 understand and apply maximum likelihood estimation;
C5 estimate ARCH and GARCH models;
C6 estimate regime switching models (if time permits).
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FINA 305: By the end of this course, students should be able to
C1 use mean-variance portfolio theory to analyse real-world investment problems;
C2 describe and explain the assumptions and reasoning behind the capital asset pricing
model, and critically analyse extensions of the model;
C3 explain the assumptions and reasoning behind the arbitrage pricing theory, show how the
model can be applied, and critically analyse the empirical debate surrounding the validity
of the APT and CAPM;
C4 demonstrate an understanding of portfolio management and pricing in a modern financial
market;
C5 describe the different types of mutual funds available in financial markets, and critically
analyse their strengths and weaknesses; show how to evaluate the performance of a fund
manager;
C6 perform security analysis, asset allocation and the pricing of equities, bonds and
derivatives;
C7 analyse valuations of forward contracts and futures contracts, and explain their use for
hedging purposes;
C8 apply the binomial model and Black-Scholes model to value European and American
options, and implement and explain the basic principles of delta-hedging.
FINA 306: By the end of this course, students should be able to
C1 derive theoretical models of the determination of asset prices from utility maximising
behaviour;
C2 explain and apply economic models of individual choice in a static world with
uncertainty;
C3 explain and apply economic models of equilibrium goods and asset markets in a
static world;
C4 explain and use economic models of equilibrium of goods and asset markets in a multiperiod world;
C5 explain and analyse the characteristics and implications of incomplete markets.
FINA 307: By the end of this course, students should be able to
C1 identify the principles of risk management, and discuss the role of risk management in a
modern economy;
C2 analyse the role of financial markets and derivative securities in allocating and managing
risk;
C3 explain the role of insurance markets in allocating and managing risk;
C4 analyse the use of value at risk and economic capital in financial risk management;
C5 discuss the role of quantitative modelling of catastrophe and other risks;
C6 analyse the role of risk neutrality in allocating and managing risk;
C7 discuss selected cases of poor risk management from the recent past in the financial
sector;
C8 explain the purposes of regulation of the financial sector and its impact on the risk
manager.
FINA 308: By the end of this course, students should be able to
C1 explain the nature, role, functioning and supervision of financial institutions;
C2 Identify and measure risk in a financial institution and explain how it can be managed;
C3 explain credit risk, interest rate risk, and foreign exchange risk;
C4 analyse capital adequacy regimes and other operational requirements for banks and other
financial institutions.
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