154-0523 – Financial decision-making under risk (FDMuR)

Gurantor departmentDepartment of Finance
Subject guarantorprof. Ing. Tomáš Tichý, Ph.D.
Study levelundergraduate or graduate
Subject version
Version codeYear of introductionYear of cancellationCredits
154-0523/02 2009/2010 2019/2020 5
154-0523/03 2019/2020 5

Subject aims expressed by acquired skills and competences

The aim of the course is to allow the students to: - understand key financial issues under risk and uncertainty - learn how to propose robust solutions of these issues using up-to-date tools and techniques - evaluate the linkage between the return and risk - understand flexible approaches to decision-making - analyze the linkage between primary variables and proposed solutions.

Teaching methods

Lectures
Tutorials

Summary

In this course, fundamental issues of financial decision-making are treated. Special attention is paid to the risk and flexibility. The course extends knowledge obtained in basic corporate finance courses by the aspects of risk and flexibility. As well, it extends financial markets courses by proper mathematical treatment. The aim of the course is to introduce key financial issues and teach the students to propose their robust solutions with up-to-date techniques. The students should be able to analyze the linkage between primary variables and proposed solutions.

Compulsory literature:

BERK, J. and P. DEMARZO. Corporate Finance. 5th ed. Harlow: Pearson, 2023, 1184 p. ISBN 978-1-292-16016-0. HULL, J. C. Option, Futures and other Derivatives. 11th ed. New York: Prentice Hall, 2022, 880 s. ISBN 978-1-292-41065-4. ZMEŠKAL, Z., ČULÍK, M., TICHÝ, T. Financial decision making under risk: workbook with solutions. Ostrava: VSB-TUO, 2013. ISBN 978-80-248-4217-2.

Recommended literature:

BREALEY, R. A., MYERS, S.C., ALLEN, F., EDMANS, A. Principles of Corporate Finance. 14th ed. McGraw-Hill, 2023, 992 s. ISBN 978-1-2-4-08094-6. CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2018, 480 s. ISBN 978-06-911-6080-1. COPELAND, T. E., WESTON, J. F., SHASTRI, K. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4.

Additional study materials

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.