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Financial Markets and Instruments

Financial Markets and Instruments

Code	15654
Year	2
Semester	S1
ECTS Credits	6
Workload	TP(45H)
Scientific area	Management
Entry requirements	Does not have.
Learning outcomes	In a context in which markets are increasingly integrated and operating worldwide, this course aims those students to develop the following skills: - How are organized and the function of capital markets; - Dominate the concepts related with the management portfolio theory: i) asset portfolio properties; ii) diversification effect; iii) deduction of the efficient market frontier; - To use of the Arbitrage Pricing Theory and the Capital Asset Pricing Models: i) implications of the models; ii)parameters to estimate; iii) distinction between Capital Market Line and Security Market Line. - To know how to evaluate bonds: i) identify the different concepts of interest rates; ii) relationship between spot and forward rates; iii) relationship between bond prices and spot rates; - Identify the main methodologies used to value shares: i) use of multiples; ii) dividend model and iii) discount cash flow model.
Syllabus	1. Introduction 2. Financial markets and financial investments 3. Asset Portfolio 4. Efficient Asset Portfolio 5. Capital Asset Pricing Model CAPM 6. Arbitration Pricing Model (APT) 7. Valuation of bonds 8. Valuation of Shares
Main Bibliography	Bodie, Z., Marcus, Kane, Alex; Marcus (2010). Investments and Portfolio Management. McGraw-Hill/Irwin. 9th Edition. Caiado, Aníbal C. e Caiado, Jorge (2010). Gestão de Instituições Financeiras. Edições Sílabo, 2.ª Edição. Pires, C. (2011). “Mercados e investimentos financeiros”, 3.ª Edição, Editora Escolar.
Language	Portuguese. Tutorial support is available in English.