Close Help Print Course module: 201600013 201600013 Investments & Risk Management Course info Course module 201600013 Credits (ECTS) 5 Course type Course Language of instruction English Contact person dr. X. Huang E-mail x.huang@utwente.nl Lecturer(s) Examiner dr. X. Huang Contactperson for the course dr. X. Huang Lecturer V.B. Marisetty Academic year 2022 Starting block 1A Application procedure You apply via OSIRIS Student Registration using OSIRIS Yes Aims This course is taught in English. Upon completion of this course, students are able to: describe the concept of financial risk management and explain the hedging motives of firms; apply the fundamental models in valuing financial assets; demonstrate a good knowledge of financial derivatives (e.g. futures, forwards, swaps and options); identify various financial risks (e.g. interest rate risk, foreign exchange risk) faced by international companies and analyse how these risks can be managed; analyse empirical research on investments and financial risk management. Content   This course introduces various financial risks faced by national and international firms and the strategies used to manage these risks. The course starts with the concept of risk management, and continues with the principle of valuing financial assets (e.g. stocks) and the application of this principle to financial derivatives (e.g. forwards, futures, options and swaps). Afterwards, the usage of financial derivatives is explained in hedging interest rate risk and foreign exchange risk. Students will also learn about the academic research and practice in investments and financial risk management.   Learning of course materials will be supported by a combination of lectures, tutorials and assignments. The final mark consists of group assignment 20%) and a written individual examination (80%). A minimum mark of 5.5 is required for the written exam. The final mark on the course is awarded when the student has completed all course elements. KEY WORDS CAPM, Factor models, derivatives, hedging   Assessment The final mark consists of group assignment 20%) and a written individual examination (80%). A minimum mark of 5.5 is required for the written exam. The final mark on the course is awarded when the student has completed all course elements.   Assumed previous knowledge Basic knowledge on finance. More specifically, students should know the concept of time value of money, how to compute PV and FV, have fundamental knowledge of stock and bonds. Some mathematical skills are also required. Students should know how to solve a one-variable equation and a system of two equations with two variables. Resources for self study Book suggestion: - Hillier, D., Clacher, I., Ross, S., Westerfield, R. and Jordan, B., Fundamentals of Corporate Finance, 3rd European Edition, 2017, McGraw-Hill. Participating study Master Business Administration Required materials Book Brealey, R., Myers, S. and Allen, F. (2020). Principles of Corporate Finance, 13th International edition, McGraw-Hill. ISBN: 978-1-260-56555-3 Articles A selection of academic papers will be announced on Canvas Recommended materials - Instructional modes Lecture Presence duty Yes Self study without assistance Presence duty Yes Seminar Presence duty Yes Tutorial Presence duty Yes Tests Test Close Help Print