Financial Market Analysis
- Credits: 6
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 2
- Faculty of Economic Informatics
Teachers
Included in study programs
Teaching results
Completion of the subject Analysis of Financial Markets presupposes the acquisition of orientation on financial markets.
Knowledge
Progress in the field of new knowledge is evident after completing the course. Students will understand the valuation of financial instruments traded on the money and capital markets. They will also gain the knowledge to analyze the financial situation between assets and the use of financial products and derivatives to come to the solution of set goals.
Competences
Based on the acquired knowledge, students are able to build a portfolio in a stock market environment. The purchase and sale of assets will be decided according to valuation models. They will also be able to appreciate, integrate financial instruments of the money and capital market according to its functionality.
Skills
As part of the educational process, they will acquire such skills that will enable students to perform the necessary actions with financial assets, acquire orientation in financial markets and, in the event of an imbalance, take a position to obtain a risk-free profit.
Indicative content
Types of financial markets, trading participants, financial assets, decision criteria. Profitability and risk, statistical quantities. Modern portfolio theory, optimization problems, risk aversion. CAPM model, CML and SML line, acceptable, efficient and optimal portfolio. Equity securities, intrinsic value of a security. Macroeconomic analysis, stock indices. Models of determining the intrinsic value of a share, analysis of financial statements. Capital market, bonds and their division, the value of the bond and its yield, yield curves. Creditworthiness of bonds, duration and convexity, convertible bonds. Money market, discount securities, repo transactions, bills of exchange, certificates of deposit. Derivatives market, futures, forwards, swaps, options, market participants, short-long positions. Valuation of forward and futures contracts, model of transmission costs and expectations. Arbitrage, options, option strategies
Support literature
1. Blake, D.: Financial market analysis. John Wiley Sons, LTD, 2000. ISBN 0-471-87728-X
2. Pinda, Ľ.: Deriváty cenných papierov /Vybrané problémy/. IURA EDITION 2001. ISBN 80-88715-98-9
3. Hull, J. C.: Options, futures, and other derivative securities. 11-th Edition. Prentice-Hall International, Inc. 2018. ISBN-13: 978-0-13-6940104
4. Pinda, Ľ.: Finančná matematika investičných projektov. Bratislava: IURA EDITION, spol. s r.o. 2010, ISBN: 978-80-8078-319-8
Syllabus
1. Types of financial markets, trading participants, financial assets, decision criteria 2. Profitability and risk, statistical quantities 3. Modern portfolio theory, optimization problems, risk aversion 4. CAPM model, CML and SML line, acceptable, efficient and optimal portfolio 5. Equity securities, intrinsic value of a security 6. Macroeconomic analysis, stock indices 7. Models of determining the intrinsic value of a share, analysis of financial statements 8. Capital market, bonds and their division, the value of the bond and its yield, yield curves 9. Creditworthiness of bonds, duration and convexity, convertible bonds 10.Money market, discount securities, repo transactions, bills of exchange, certificates of deposit 11.Derivatives market, futures, forwards, swaps, options, market participants, short-long positions 12.Valuation of forward and futures contracts, model of transmission costs and expectations 13.Arbitrage, options, option strategies
Requirements to complete the course
30% semester seminar work, resp. project,
70% written exam.
Student workload
26 hours of lectures,
26 hours of exercise,
65 hours of self-study in preparation for the exam,
13 hours preparation for seminars,
26 hours elaboration of a semester project.
Language whose command is required to complete the course
slovak
Date of approval: 10.02.2023
Date of the latest change: 15.05.2022