BUS431 – Syllabus

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Unit Description

University: Bilgi University

Title: INSURANCE AND INVESTMENT

Unit Code: BUS 431 – 01

Unit Coordinator: Bülent Senver www.bulentsenver.com bsenver@superonline.com

Named Award pathway(s)

Credits, Year, Maximum Student No: 10, 4, 100

BA (Hons) International Finance

BA (Hons) Business Administration

Prerequisites: Principles of Finance, Calculus, Statistics

Co-requisites: None

Aims

To provide the understanding of the main concepts and principles in the insurance and investment markets.

To teach the skills necessary to evaluate the different kinds of risks in the insurance and investment opportunities.

To analyse the methodologies and the tools used to evaluate the best yield on investment decissions with accaptable risk awareness.

Learning Outcomes

On succesful completion of this course, the student should be able to:

Evaluate the individual investment instruments,

Understand the different kinds of risks that affect investment decissions,

Be able to protect an individual or a company against financial risks, business risks,

Learn how to use and where to use the investment comparison and evaluation tools, models and formulas.

Syllabus

Finance and the Financial System

  • What is Finance?
  • The Financial System
  • Interpreting and Forecasting Financial statements

Time and Resource Allocation

  • The Time Value of Money and Discounted Cash Flow Analysis
  • Life-Cycle Financial Planning
  • How to analyze Investment Projects

Valuation Models

  • Principles of Asset Valuation
  • Valuation of Known Cash Flows: Bonds
  • Valuation of Common Stock

Risk Management and Portfolio Theory

  • An Overview of Risk Management
  • Hedging, Insuring, and Diðversifying
  • Choosing an Investment Portfolio

Asset Pricing

  • The Capital Asset Pricing Model (CAPM)
  • Forward and Futures Prices
  • Options and Contingent Claims

Key Indicative Texts

Text Book: “Finance” by Zvi Bodie, and Robert c. Merton

Reading Materials: To be assigned by the instructor from the web page www.bulentsenver.com

Office Hours

By appointment. Students are free to communicate at any time with the instructor by E-Mail bsenver@superonline.com

Project Paper

Each student has to prepare a “Project-Paper”. The details of the project paper is given in the web www.bulentsenver.com (Bilgi University – Insurance and Investment BUS 431-Project Paper)

Exams and Grades

1. Project Paper              20%

2. Midterm Examination   30%

3. Final Examination        50%

Class Attendance

Regular attendance is necessary for good performance. More than 2 absences will result in a difficulty to cope up with the class discussions. There are no make-ups for the exams. Advance notification or a written medical excuse is required for excused absence at an exam. An unexcused absence will result in a zero score for the test.

Financial Calculator

A financial calculator is necessary to be able to solve the problems given as assignment and in the exams.