FIN6407 Asset PricingBahçeşehir UniversityDegree Programs ECONOMICS AND FINANCE (ENGLISH, PHD)General Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
ECONOMICS AND FINANCE (ENGLISH, PHD)
PhD TR-NQF-HE: Level 8 QF-EHEA: Third Cycle EQF-LLL: Level 8

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
FIN6407 Asset Pricing Fall
Spring
3 0 3 10
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi DİLA ASFUROĞLU
Recommended Optional Program Components: None
Course Objectives: Asset valuation (pricing) is the process of determining the current worth of a portfolio, firm, investment, or balance sheet item and it is the essence of most financial decision-making in corporate finance. The objective of this course is to study what factors influence the value of assets and how assets are priced in financial markets. This cource will introduce the student to the workings of asset markets and the fundamental tools of asset valuation and theoretical asset pricing models While the main goal of the course is to familiarize the student with the basic theoretical valuation concepts, the practical applications will also be discussed. The student is expected to learn all the basic tenets of asset valuation at the end of the course. More of the emphasis will be on fixed income security valuation, stock valuation and firm valuation.

Learning Outcomes

The students who have succeeded in this course;
learn
1)The logic of asset pricing,
2)Theoretical asset pricing models,
3)Practical applications of theoretical asset pricing models.

Course Content

Theoretical asset pricing models, fixed income pricing, firm valuation.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction to Valuation, Generalities About Valuation, Primary Value Concepts, Efficient Market Hypothesis.
2) Interest Rates, Time Value of Money, Concepts of Risk, Return and Discount Factor.
3) How to Value Securities?
4) Pricing of Bill-Bond-Eurobond
5) Duration, Moditified Duration and Investment Strategies.
6) CAPM -Capital Asset Pricing Model
7) CAPM -Betas, Risk Premium
8) Arbitrage Pricing Theory(APT)
9) Fama French 3 Factor Model
10) Fama French 5 Factor Modeli
11) Cost of Capital: Cost of Debt and Cost of Equity
12) Cost of Equity in Emerging Markets
13) Firm Valuation Models
14) Firm Valuation Models

Sources

Course Notes / Textbooks: Investment Valuation: Tools and Techniques for Determining the Value of Any Asset by Aswath Damodaran, 2nd Edition.


References: Related Articles will be announced by the lecturer.

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Midterms 1 % 40
Final 1 % 60
Total % 100
PERCENTAGE OF SEMESTER WORK % 40
PERCENTAGE OF FINAL WORK % 60
Total % 100

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Being able to evaluate and use new knowledge in Economics and Finance with a systematic approach. 3
1) Being able to develop new thoughts and methods in Economics and Finance by using high-level mental processes such as creative and critical thinking, problem solving and decision making. 4
1) Being able to contribute to the progress in Economics and Finance by independently carrying out an original work that brings innovation to the field, develops a new idea, method, design and/or application or applies a known idea, method, design and/or application to a different field. 3
1) Being able to develop and deepen current and advanced knowledge in the field with original thought and/or research at the level of expertise based on Master's qualifications, and reach original definitions that will bring innovation to the field. 4
1) Being able to critically examine and develop social relations and the norms that guide these relations, and to manage actions to change them when necessary. 2
1) Being able to contribute to the process of becoming an information society and maintaining it by introducing scientific, technological, social or cultural advances in the fields of Economics and Finance. 4
2) Being able to comprehend the interdisciplinary interaction that Economics and Finance are related to; and to reach original results by using knowledge that requires expertise in analyzing, synthesizing and evaluating new and complex ideas. 4
2) Being able to develop a new idea, method, design and/or application that brings innovation to the fields of Economics and Finance, or to apply a known idea, method, design and/or application to a different field, to investigate, comprehend, design, adapt and apply an original subject. 3
2) Being able to defend their original views in the discussion of the issues in the field with experts and to establish an effective communication showing their competence in the field. 5
2) Being able to interact functionally by using strategic decision making processes in solving problems related to Economics and Finance. 3
2) Being able to expand the limits of knowledge in the field by publishing at least one scientific article on Economics and Finance in national and/or international peer-reviewed journals and/or by producing or interpreting an original work. 3
3) Being able to contribute to the solution of social, scientific, cultural and ethical problems encountered in Economics and Finance and to support the development of these values. 3
3) Being able to critically analyze, synthesize and evaluate new and complex ideas. 3
3) Being able to communicate and discuss at an advanced level in written, oral and visual English using at least the European Language Portfolio C1 General Level. 3
3) Ability to lead in environments that require the resolution of unique and interdisciplinary problems. 3
4) Gaining high-level skills in using research methods in studies related to Economics and Finance. 4