82128 - Corporate Valuation Models

Learning outcomes

The goal is to provide either the basic skills or elements of some more advanced topics in financial mathematics with a problem solving approach and to develop the skills to build a spreadsheet of the solutions. At the end of the course the student is able to: - solve the problems of financial evaluation under certainty; - create spreadsheets that implement these solutions; - recognize some hedging and optimizations problems of financial choices.

Course contents

Part One (Cesari, 2012a)

Basic concepts (Ch. 1)

Coupon bonds (Ch. 2 except 2.4.4, 2.5.4, 2.6.3, 2.7.3, 2.7.4, 2.7.5, 2.9, 2.10)

Term structure of interest rates (Ch. 3 except 3.7.5, 3.8, 3.9.2, 3.9.3)

Measure and mamagement of interest rate risk (Ch. 4 except 4.4, 4.5, 4.6)

Part Two (Cesari, 2012b)

Choice under uncertainty (Cap. 1: par. 1.4.1, 1.4.2, 1.5, 1.6, 1.7, 1.8, 1.10)

Financial portfolios and returns (Cap. 2: par. 2.4)

Indices and benchmarks (Cap. 3: par. 3.1, 3.2, 3.3, 3.5, 3.6, 3.7, 3.8)

Risk, variability, volatility (Cap. 4: par. 4.2, 4.3, 4.4, 4.5, 4.6)

Strategic asset allocation (Cap. 5: par. 5.1, 5.2, 5.3, 5.4, 5.5)

Sharpe's model (Cap. 6: par. 6.1, 6.2, 6.3, 6.4, 6.8)

Appendix

Readings/Bibliography

Cesari, R. (2012a), Introduzione alla finanza matematica. Concetti di base, tassi e obbligazioni, McGraw-Hill, 2012

Cesari, R. (2012b), Introduzione alla finanza matematica. Mercati azionari, rischi e portafogli, McGraw-Hill, 2012

Teaching methods

frontal lessons

Assessment methods

written exam

Teaching tools

tools downloadable from

https://www.unibo.it/sitoweb/riccardo.cesari/didattica

Office hours

See the website of Riccardo Cesari