École du management et de l'innovation, Master in Economics and Business
Pedagogical format : Seminar Course validation : Lectures will run over 12 weeks and will be held on Wednesdays from 10 :15-12 :15 in amphi Caquot (28 rue des Saints-Pères). The course will be assessed through a mid-term exam (“galop”, counting for 40% of the course grade) and a ﬁnal exam (counting for 60% of the course grade). Pedagogical method : The lectures are based on typed-up notes which will be available on the course webpage. To supplement the lecture notes, the following textbook is highly recommended : Z. Bodie, A. Kane and A. Marcus, Investments, McGraw Hill. Course Description : This course aims to familiarize students with the workings of ﬁnancial markets and the fundamental tools of asset valuation. Three important asset classes are covered : bonds, stocks and derivatives. The present-value formula is the cornerstone of asset valuation and constitutes our starting point. It is ﬁrst used in the context of ﬁxed-income securities, where we focus mainly on the valuation of riskfree bonds – emphasizing the relation between bond valuation and absence of arbitrage. Next, we move to stocks. Basic notions of statistics and probability are introduced, in relation to the fundamental concepts of risk, return and diversiﬁcation. We formalize the trade-off between risk and return in the context of portfolio theory, and examine how risk is priced in equilibrium according to the capital asset pricing model (CAPM). Risk-adjusted discount rates are then used in present-value calculations for the purpose of stock valuation. We then ask whether the market values stocks efﬁciently, or whether there are “abnormal” returns leading to large proﬁts that are not fair compensation for risk. Finally, we turn to derivatives – namely, futures and options. After an overview of derivatives' main uses, we cover the pricing of forward and futures as well as option valuation models, emphasizing again the relation between valuation and no-arbitrage. If time permits, the course ends with a brief discussion of credit derivatives and the role of securitization in the subprime crisis. Required reading : to be deﬁned.
Teachers : Fabrice GUEZ (Gérant, 41 MOTS). Prerequisite : Financial mathematics, ﬁnancial markets, ﬁnancial analysis Pedagogical format : Seminar Course validation : Pass/fail course based on attendance Workload : In addition to the classes, a 75 minute homework session shall be done to put in application the notions seen in class. Pedagogical method : Each session is to be divided in two parts : a) 90 minutes chalk and talk lecture done by the teacher b) 30 minutes application in FRM quizzes Course Description : Within the last 10 years, the ﬁnancial industry became increasingly concerned about managing risk. The FRM offers the opportunity to show your skills in risk management and is proof that you have had your knowledge validated by the leading organization in the ﬁeld and in accordance to international professional standards. The FRM exam gives you the opportunity to become part of an elite group of skilled professionals, sought after and employed by the leading ﬁnancial institutions in the world. The course topics included in the FRM includes : -market risk measurement and management -credit risk management -risk management and investment -current ﬁnancial market issues The FRM is one of the most sought after ﬁnancial certiﬁcation these days. It opens doors to careers involving the management or assessment of risk within the ﬁnancial industry Required reading : Michel Crouhy, Dan Galai, and Robert Mark, The Essentials of Risk Management, 2nd Edition.
FUNDAMENTALS OF MARKETING
Semester : Autumn Number of hours : 24 Language of tuition : English
Opened to the exchange program
FRM CERTIFICATION PART 1
Semester : Autumn and Spring Number of hours : 24 Language of tuition : English
Teachers : Fabien COMBY (Chef de projet international), Maxime DUPONT (Directeur du développement). 2