721957S FUNDAMENTALS OF FINANCE
Jukka Perttunen

Learning outcomes

Upon completion of the course, the student understands the basic concepts of finance and is capable of applying them in financial problem solving. Students are also able to express their ideas analytically and effectively in written form.

Contents

Interest rates and discounting, asset pricing, fixed-income securities, derivative securities, portfolio performance evaluation, corporate cash flows, firm valuation.

Completing the course

During the course, there are two mandatory intermediate exams. In addition, the student has to complete a course project, which includes a written report.

Exam I Friday, 08.11.2019.
Exam II Wednesday, 04.12.2019.

Project report must be returned by Wednesday 15.01.2020.

If a student fails to take the first exam, he/she is still eligible to continue the course. In this case, the student must inform the lecturer by an email of the continuing the course by Monday 11.11.2019.
If a student fails to take the second exam, he/she is still eligible to continue the course.
There is no possibility to retake an exam.

If a student fails to return the project report by the deadline, he/she fails the course.

If a student returns the project report by the deadline, but fails the course, he/she is offered a possibility to correct the project report in order to pass the course. However, this option is available only if the student has taken at least one of the two intermediate exams. The corrected report must be returned by Friday 31.01.2020.

Assessment methods

Exam I contains 10 multiple choice problems. The right answer provides +2 points, a wrong one -1 point, and ’no answer’ 0 points. The maximum points is 20.

Exam II contains 10 multiple choice problems. The right answer provides +2 points, a wrong one -1 point, and ’no answer’ 0 points. The maximum points is 20.

The course project contains four problems, where the student has to complete an analysis with a personal data, and write a report of the results. The standard report provides a maximum of 10 points per problem. The maximum total points from a standard report is thus 40. With additional analyses one can earn up to five additional points per problem, and the maximum total points from the project rises up to 60.

The final grade of the course is based on the total points from the two exams and the course project as follows:

Points Grade
40           1
50           2
60           3
70           4
80           5

Course material

Course material is available in http://cc.oulu.fi/~jope/FOF.

The data for the course project will be available in the above address by Wednesday 13.11.2019.

Allowed tools in the exam

Calculator of any kind is allowed. The exam includes an appendix with all necessary formulas.