Budapest University of Technology and Economics, Faculty of Electrical Engineering and Informatics

KÓSA, Zsuzsanna PhD associate professor Department of Telecommunications and Mediainformatics

SIMON, Csaba PhD assistant professor Department of Telecommunications and Mediainformatics

Basic financial and business knowledge, definitions related to investing and debts

A kötelező előtanulmányi rend az adott szak honlapján és képzési programjában található.

The general goal is to evaluate the value of the firms from outside based on theory, and help the investing decisions based on external evaluation. Special topics are: evaluation of securities based on risk and return, portfolio evaluation. Analyze the frequent cases is business, like direct industrial investment, investment through security market, loan providing to partners. Participants should recognize the unrealistic offers and transactions, an find compromised solutions.

•    Indicators to define the value and risk of a firm

•    Possibilities to capitalize a firm

•    Scoring of loan requests and loan offers

•    Risk of exchange rates, risk of having debts

o   Case study: investing at high level of debt

 •    Financial behaviour: behaviour of different investors,

•    Features and risk of nonfinancial investments

•    Financial investments, different types of securities, security market, financial market

•    How to define price for securities bascet pricing, prediction of prices

o    Case study: introduction of a firm to a stock exchange

 •   Risk descriptions, risk and yield expectations, risk-reduction, calculation of expected return

 •    Portfolio and security selection based on estimated return

•    security market, return, forecasting return

•    Theory of portfolio, options, selection of portfolio, analysis

o    Case Study: Issuing corporate bonds

 •    Interest-based securities,

•    Government bonds, evaluation of country risk and inflation,

•    Pricing corporate bonds, securities with bascet-pricing

o   Case Study: long term savings for pension age

 •    Predictions of bankruption with financial modells

•    modelling komplex data-intenzive problems

Lecture with interactive opportunities to put questions

a. During the semester: 1 midterm test.

b. In examing period: written exam with the possibility of oral extension

c. Preliminary exam possibility: none

d.  Signature is given at 4 points or over from the maximum 10 points of the midterm.

The midterm can be re-written during the semester at a given date and time, and at the recup period in a second opportuniy at a given date and tine, but with extra fee.

Before and after the lectures agreeing with the teachers

Literature:
-    Bodie, Kane, Marcus: Investments, Mc Graw Hill 8. edition, 2009.
Literature adviced:
•    T. H. Davenport, J. G. Harris: Competing on Analytics: The New Science of Winning, Harvard Business Press, 2007
•    A. Kuznetsov, The complete guide to capital markets for quantitative professionals, McGraw-Hill Professional, 2006
•    E. A. Helfert: Techniques of Financial Analysis: A Guide to Value Creation, Edition: 11, McGraw-Hill/Irwin, 2003
•    G. T. Friedlob, L. L. F. Schleifer: Essentials of Financial Analysis, John Wiley and Sons, 2003

The course is the successor of the course BMEGT35M403.