Course code Ekon6012

Credit points 2

Financial Investments Management

Total Hours in Course80

Number of hours for lectures12

Number of hours for seminars and practical classes12

Independent study hours56

Date of course confirmation21.06.2018

Responsible UnitInstitute of Finance and Accounting

Course developer

author prof.

Ingrīda Jakušonoka

Dr. oec.

Course abstract

The course gives advanced knowledge on the principles and mechanisms of financial market operations, the theory and practice behind financial investment management, operations with different financial instruments and securities and the related financial calculations; it provides basic knowledge in portfolio formation and management, as well as the balancing of risk and reward.

Learning outcomes and their assessment

1) Students will be able to demonstrate an in-depth knowledge of the operational principles and mechanism of a financial market, the theoretical and practical aspects of financial investment management, and management of a securities portfolio – discussions in seminar classes, tests.
2) Demonstrate the understanding of balancing risk and profitability and implementing a diversified investment policy in a dynamic economic environment – test with calculations.
3) Demonstrate the knowledge of how to apply the most important asset valuation methods and assess financial investments economically – test with calculations.
4) Perform calculations, analyse the results obtained, understand causes and make proposals for enhancing an investment portfolio – test with calculation, calculations during classes.
5) Analyse information about financial market developments and transactions with various financial instruments and securities as well as plan and manage financial investments – independent work, tests.
6) Responsibly plan the completion of the assignments given, select information, present the calculations performed and proposals made –independent work.

7) Independently plan and forecast the financial performance of an enterprise in a dynamic economic environment, do transactions with various financial instruments, analyse financial investments and perform related calculations based on the theoretical knowledge and practical skills acquired – practical assignments, tests.

Course Content(Calendar)

1. Financial investment, their classification and investment policy (lecture 1 h)
2. General characteristics of financial investment management (lecture 1 h)
3. Characteristics and valuation methods of financial instruments (lecture 1 h, practical classes 1 h)
4. Assessment of the effectiveness of financial investment instruments (lecture 1 h, practical classes 1 h)
5. Assessment of bonds (lecture 2 h, practical classes 3 h)
6. Valuation of shares (lecture 2 h, practical classes 3 h)
7. Funds Market Derivatives, Capacities for Use (lecture 1 h, practical classes 1 h)
8. Building a portfolio of financial investments (lecture 1 h, practical classes 1 h)
9. Management and monitoring of the financial investment portfolio (lecture 1 h, practical classes 2 h)

10. Transactions with fund instruments (lecture 1 h)

Requirements for awarding credit points

Successfully completed 2 tests: Test 1 - Financial investment management policy and stages. Valuation of stocks and bonds (40%). Test 2 - Capital asset pricing model CAMP, portfolio risk and profitability balancing (40%).
Presentation of a report on an individual study - Analysis of the financial instrument market and investment opportunities for various financial market segments and analysis of a securities portfolio (20%).

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests. Presentation of a report on an individual study - Analysis of the financial instrument market and investment opportunities for various financial market segments and analysis of a securities portfolio.

Criteria for Evaluating Learning Outcomes

Tests and presentation with mark – average score in balls. (10% are equal to one point on a 10-point marking scale.)

Compulsory reading

1. Brooks R. Financial Management: Core Concepts. 3rd edition. Boston: Pearson, 2016. 643 p. ISBN: 978-1-292-10142-2
2. Brigham E.F., Ehrhardt M.C. Financial Management, Theory and Practice. 2010. 1184 p.
3. Боди З., Кейн А., Маркус А. Принципы инвестиций. 4-е изд. Москва: Вильямс, 2002. 984 c.
4. Sharpe W.S., Alexander G.J., Bailey J.V. Investments. 5th ed. M.Infra-M. 2009. 1028 p.
5. Praude V. Finanšu instrumenti. 1., 2.sēj. Rīga: Burtene, 2009.
6. Rupeika-Apoga R., Zelgalve E. Finanšu tirgus un tā analīzes metodes. Rīga: LU Akadēmiskais apgāds, 2009. 118 lpp.
7. Saksonova S. Finanšu informācijas un pārskatu praktiskā izmantošana uzņēmumu finanšu lēmumu pieņemšanā. I.K. “INFO TILTS”. Rīga, 2012. 313 lpp.
8. Боди З., Кейн А., Маркус А. Принципы инвестиций. 4-е изд. Москва: 2002. 984 с.
9. Боди З., Мертон Р. Финансы. Москва: 2005. 592 с.
10. Фабоцци Ф. Управление инвестициями. Москва: 2000, Инфра-М. 932 с.

Further reading

1. Vērtspapīru tirgus zinības. Ģ. Apsītis, I. Aščuks, U. Cērps, G. Kokorevičs, Ģ. Ozols, A. Sedlenieks, H. Zuļģis. Otrais papild. izd. Rīga: Jumava, 2006. 222 lpp.
2. Brealey R.A., Myers S.C., Marcus A.J. Fundamentals of Corporate Finance. Boston: McGraw-Hill/Irwin, 2007.
3. Бригхем Ю., Гапенски Л. Финансовый менеджмент. B 2-x томах. Пер.с англ. Санкт-Петербург, 1999.
4. Кидуэлл Д.С., Петерсон Р.Л., Блэкуэлл Д.У. Финансовые институты, рынки и деньги. Санкт-Петербург: Питер, 2000. 752 с. Гл.12. Международные рынки кредитов и валюты стр. 313-351.
5. Ковалев В.В. Финансовый менеджмент: теория и практика. 2-е изд. Москва: ТК Велби, Проспект, 2007.
6. Ли Ченг Ф., Финерти Д. И. Финансы корпораций: теория, методы и практика. Москва, 2000. c. 388-455.
7. Энциклопедия финансового pиck–менеджмента. Под ред. kанд. экон. наук A. A. Лобанова и A. B. Чугунова. Mockвa: Альпина Бизнес Букс, 2009. 932.c.
8. Rīgas fondu birža http://www.nasdaqomxbaltic.com

Periodicals and other sources

1. Business Week. Nnedēļas izdevums. ISSN 0007-7135. Pieejams: http://www.businessweek.com.
2. Dienas Bizness. Nedēļas laikraksts. Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005-.ISSN 1407-2041
3. Finanšu portāls www.financenet.lv
4. Finanšu un kapitālu tirgus komisija www.fktk.lv
5. Finanšu vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
6. Forbes. Mēneša izdevums (latviešu valodā). SK Media SIA. ISSN 1691-6018
7. International Journal of Managerial Finance. Pieejams: http://www.emeraldinsight.com/products/journals/journals.htm?id=ijmf&PHPSESSID=9c0rsst1q6f4vhln4lesbbnav0
8. Laikraksts Latvijas Vēstnesis. Latvijas Republikas oficiālais laikraksts. ISSN 1407-0391
9. Latvijas Bankas monetārais apskats. Pieejams: http://www.bank.lv
10. LR ekonomikas ministrija. Pieejams: http:// www.em.gov.lv
11. Riska vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
12. The Journal of Risk Finance. Pieejams: http://www.emeraldinsight.com/journals.htm?issn=1526-5943
13. Žurnāls "Studies in Economics and Finance". Pieejams: http://www.emeraldinsight.com/journals.httm?issn=1086-7376&volume=27&issue=4
14. Žurnāls Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. ISSN 1407-5709
15. Žurnāls Kapitāls. IKK Izdevniecība SIA, Rīga; ISSN 1407-2505
16. Pasaules biržu federācija. Pieejams: http://www.fibv.com
17. Finanšu portāls. Pieejams: http://www.iFinanses.lv
18. Finanšu portāls. Pieejams: http://www.reuter.com

Notes

Restricted elective course for full-time studies of the “Economic” academic master’s degree programme for the “Financial Management and Accounting” section for full-time studies