İŞL161

School of Economics and Administrative Sciences \ Business Administration

3

6

Compulsory

English

-

Artificial Intelligence Engineering

This course covers the theory and practice of financial systems and markets. Starting with basic concepts such as time value of money, net present value and market efficiency, the course covers the three main components of finance: markets, corporate finance and investment. Various financial instruments and asset classes such as money markets, bonds, equities and derivatives are analysed. Corporate finance covers financial statement analysis, capital budgeting and financing decisions, while the investment section covers topics such as risk and return, diversification and the Capital Asset Pricing Model (CAPM). The course provides a holistic view of the relationships between financial markets, corporate finance and investment decisions.

1. Financial Markets and Institutions, Frederic S. Mishkin ve Stanley G. Eakins, Pearson Prentice Hall; 9th edition
2. Essentials of Corporate Finance, Ross, Westerfield, Jordan, Irwin/McGraw-Hill; 7th edition

To introduce students to the basic principles of finance and the working mechanism of financial markets,
To provide them with the ability to analyze financial decision-making processes,
To ensure that they understand the features and functions of financial instruments,
To help them analyze the interactions of financial markets and economic factors,
To ensure that they understand the relationship between financial risk and return, and to provide basic information on portfolio management.

1. Can explain the logic of financial systems and markets.
2. Can calculate the time value of money and apply it in financial decision making.
3. Can understand the functions of the banking sector and Central Banks in the economic and financial system.
4. Can recognize financial asset classes and know risk-return relationships.
5. Can discuss basic financial management decisions and define the role of the financial manager.
6. Knows the basic principles in capital budgeting and financing decisions.
7. Can calculate the return on an investment and explain the principle of diversification and systematic risk.
8. Knows financial risk protection and diversification strategies.

Week 1: Course Introduction and Introduction to Financial Systems
Week 2: Financial Markets and Factors Affecting Their Development
Week 3: Time Value of Money
Week 4: Discounted Cash Flow and Net Present Value
Week 5: Central Banking and Monetary Policy
Week 6: Financial Instruments and Asset Classes
Week 7: Money and Bond Markets
Week 9: Equity and Derivative Markets
Week 10: Basic Concepts of Financial Management and Financial Statements
Week 11: Capital Budgeting and Investment Decisions
Week 12: Risk and Return
Week 13: Portfolio Diversification and Capital Asset Pricing Model

• Midterm 35 %
• Final 45 %
• Homework 20 %