Finance (5 cr)

Objective

On completion of the course, the student will be able to
• understand the features of different financial instruments
• understand how the financial markets operate
• obtain information from the financial markets
• evaluate risk and return.

Content

• Time value of money
• Sources of financing
• Role of central banks
• Role of financial intermediaries
• Financial markets
• Financial terminology
• Techniques for debt and equity valuation
• Measures of risk and return

Location and time

Lectures in Leiritie starting week 3 of 2025
• Lectures week 3 -13
• Guest lecture week 6 on Thursday
• Winter holiday week 8 (no lectures)
• Final exam week 15

Materials

Mishkin, Frederic S. Financial Markets and Institutions, 8th Edition
Pearson Prentice Hall, 2015; ISBN 978-0-13-342362-4
(Basic concepts in finance don’t change. 7th or 9th edition of this book is fine as
well.)

Lectures and Homework in Moodle platform.

Teaching methods

Lectures on Campus.
Homework assignments.
Exam.

Exam schedules

Course exam week 15
1st Re-exam week 17 (Exam - tenttiakvaario)
2nd Re-exam week 19 (Exam - tenttiakvaario)

Student workload

Approximate workload on the course:
Lectures, lessons 44 hrs
Literature independently 41 hrs
Exam preparation independent 17 hrs
Calulations independent 35 hrs
Independent work regarding own interest 20 hrs
Total workolad is 136 hrs / 5 credit points

Content scheduling

Preliminary syllabus for Finance course on Tuesday SUBJECT TO CHANGES

Finance LC00FE35 - TOPICS
week3 - Tu 14.1 1 - Course introduction and TVM
week4 - Tu 21.1 2 - Interest rate fundamentals
week5 - Tu 28.1 3 - Financial institutions, 4- Central banks and monetary policy (part 1)
week6 - Tu 4.2 4 - Central banks and monetary policy (part 2), 5- Bonds (part 1 )
week6 - Thu 6.2 All groups together - Guest lecture CGI
week7 - Tu 11.2 5 - Bonds (part 2), 6 - Stocks (part 1)
week8 - Winter holiday
week9 - Tu 25.2 7 - Stocks (part 2)
week10 - Tu 4.3 8 - Risk and return (part 1)
week11 - Tu 11.3 9 - Risk and return (part 2)
week12 - Tu 18.3 10 - Personal investing
week13 - Tu 25.3 11 - Review and exam prep
week14 No lecture
week15 - Tu 8.4 Final exam

1. Re-exam available in EXAM-room week 17
2. Re-exam available in EXAM-room week 19


Homework
Assignment #1: Time Value of Money.
Assignment #2: Interest rates and financial intermediaries.
Assignment #3: Central banks and bonds.
Assignment #4: Stock markets.
Assignment #5: Risk and return.

Further information

Guest lecture week6
Thursday 6.2 at 14 - 16.15

Evaluation scale

0-5

Assessment criteria, satisfactory (1)

The student
• has achieved the objectives of the course to a satisfactory level
• is able to identify, define and use concepts and models in the subject area of the course
• understands the conditions and principles of the development of expertise.

Assessment criteria, good (3)

The student
• has achieved the objectives of the course well, although there are still areas where knowledge and skills need to be improved
• has a good understanding of the concepts and models of the subject matter of the course and is able to carry out a reasoned analysis
• is able to apply what they have learned in leisure, learning and working life situations
• understands the importance of expertise in business and is able to analyse their own expertise.

Assessment criteria, excellent (5)

The student
• has achieved the objectives of the course with excellent marks
• has an excellent command of the concepts and models of the subject matter of the course
• is able to analyse clearly and reasonably and propose practical development measures
• has a good ability to apply what they have learned in leisure, learning and working life situations
• is able to analyse expertise in business and their own development towards expertise.

Assessment criteria, approved/failed

The student
• has achieved the objectives of the course to a satisfactory level
• is able to identify, define and use concepts and models in the subject area of the course
• understands the conditions and principles of the development of expertise.

Assessment methods and criteria

Home work (50% of grade), Exam (50% of grade)

Criteria, Fair (1) The student has achieved the course objectives fairly. The student will be able to identify, define and use the course subject area’s concepts and models. The student understands the criteria and principles of the expertise development.
Criteria, Good (3) The student has achieved the course objectives well, even though the knowledge and skills need improvement on some areas. The student is able to define the course concepts and models and are able to justify the analysis. The student is able to apply his/her knowledge in leisure, study and work situations. The student understands the importance of expertise in the field of business and is able to analyze his/her own expertise.
Criteria, Excellent (5) The student has achieved the objectives of the course with excellent marks. The student masters commendably the course subject area’s concepts and models. The student is able to make justified and fluent analysis and to present concrete development measures. The student is well prepared to apply his/her knowledge in leisure, study and work situations. The student is able to analyze the business sector expertise and the development of his/her own expertise.