Universitat Internacional de Catalunya
Financial Economics & Capital Markets
Other languages of instruction: Catalan, Spanish,
Teaching staff
Tutorials should be requested by email: bme187582@uic.es
Introduction
The first part of the course introduces asset allocation, providing students with a basic understanding of resources with economic value and the methods that support sound investment decision-making. It examines how to distribute investments among stocks, bonds, and cash, as well as how to evaluate portfolios considering the risk–return relationship.
The course presents the decision-making process step by step using statistical and economic tools, alongside fundamental theories such as the CAPM and Modern Portfolio Theory (MPT).
In addition, it explores the structure and functioning of capital markets. Students will have the opportunity to apply two key analytical approaches—fundamental and technical analysis—combining theory and practice to acquire essential skills in contemporary investment management.
Pre-course requirements
All students interested in Financial Economics and Capital Markets must first complete introductory courses in corporate financial management.
Objectives
- To understand the fundamental principles of asset allocation and risk concepts.
- To familiarize with financial systems and concepts such as banks, loans, investments, savings, etc.
- To employs economic theory to evaluate how time, risk, opportunity costs, and information can create incentives or disincentives for a particular decision.
- To study and analyze the operating and efficiency of capital markets.
- To understand the finance theories such as CAPM and MPT.
Syllabus
• Chapter 1. The Asset Allocation.
• Chapter 2. Investing Globally: Risk and Diversification.
• Chapter 3. Types of Financial Markets & Types of Securities.
• Chapter 4. The efficiency of Capital Markets.
• Chapter 5. The Modern Portfolio Theory.
• Chapter 6. An Introduction to Asset Pricing Models (CAPM).
• Chapter 7. Fundamental Analysis and Share Valuation (G-S Discount Model & CF Discount).
•Chapter 8. A brief Overview of Technical Analysis.
• Chapter 9. Bonds, Bond Pricing, and Yield to Maturity.
• Chapter 10. Yield Curve, Zero-Coupon Bonds, and the Spot Rate Treasury Curve.
Teaching and learning activities
In person
The main part of the course consists of theoretical sessions. In these sessions, the mentioned concepts necessary will be presented. This will be complemented by practical sessions spanning most of the time in the classroom.
It is particularly important that students do the necessary work before class so that they can participate actively. Students should be able to participate in a discussion forum about the interpretation of the results.
Training activities:
- Master class.
- Classroom practice (solving problems/videos/text comments/essays).
- Class quizzes.
- Group report presentations.
Evaluation systems and criteria
In person
The evaluation will be divided into 3 parts:
• Final exam 60%
Minimum of 5/10 to be considered
Passing the exam is a must
• Continuous evaluation 40%
Attending to sessions
Quizzes & practices
Investment Memorandum Project
Presentation
A student may join a team or work individually to do the investment memorandum project. The presentation topic will be given by the professor and the date of the presentation will be discussed in the class. (Please bear in mind that you should always check and verify the dates by course calendar on Moodle in case of updates or changes.). Team members will work together as a group of asset and market analysts. Students are encouraged to use various research resources, such as the Wall Street Journal, Financial Times, Reuters.com, Bloomberg.com, Econoday.com, etc. The instructor will announce a guide for the written report and the deadline for this Project Report.
final exam
The final exam is a closed-book exam and will cover material from lectures, assigned readings, and problem sets. You are allowed to bring a calculator to the final exam. Absence from the final exam will not be excused except for the most serious reasons. Such serious circumstances must be validated in writing by an appropriately accredited professional (ie, a medical doctor).
Bibliography and resources
“Investment Analysis and Portfolio Management”. Reilly & Brown. 10th Ed. Cengage