154-0323/01 – Financial Decision-Making under Risk (FRR )

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Ing. Tomáš Tichý, Ph.D.Subject version guarantorprof. Dr. Ing. Zdeněk Zmeškal
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageCzech
Year of introduction2004/2005Year of cancellation2020/2021
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
KRE330 doc. Ing. Aleš Kresta, Ph.D.
TIC02 prof. Ing. Tomáš Tichý, Ph.D.
VAL35 Ing. Jiří Valecký, Ph.D.
ZME40 prof. Dr. Ing. Zdeněk Zmeškal
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2

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., M. ČULÍK a T. TICHÝ. Finanční rozhodování za rizika. Sbírka řešených příkladů. 4. vyd. Ostrava: VŠB-TU Ostrava, 2013. 182 s. ISBN 978-80-248-3249-4.

Recommended literature:

BREALEY, R. A., S. C. MYERS a F. ALLEN. Principles of Corporate Finance. 13th ed. McGraw-Hill, 2019, 992 s. ISBN 978-0-07-715156-0. CAMPBELL, J. Y. Financial Decisions and Markets. Princeton: Princeton University Press, 2017, 480 s. ISBN 978-06-911-6080-1. COPELAND, T. E., J. W. WESTON and K. SHASTRI. Financial Theory and Corporate Policy. 4th ed. Pearson, 2013, 924 p. ISBN 978-1-292-02158-4.

Way of continuous check of knowledge in the course of semester

E-learning

Other requirements

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Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Proposal methods and evaluation of firm financial plan 2. Financial decision-making criteria under risk – principles, axoms 3. Utility functions, their application in financial decision-making 4. mean-variance models, Markowitz model 5. CAPM model, APT model. 6. Theory of company´s capital structure 7. Capital budgeting, investmnt valuation under risk 8. Dividend theories and policies. 9. Company valuation under risk 10. Acquisitions 11. Forward and futures contracts 12. Option contracts. Hedging. 13. Hedging, methods of hedging, possibilities in financial management 14. Option methodology and its application in financial management 15. Cash management of multinational firm (theory of exchange rates estimation)

Conditions for subject completion

Full-time form (validity from: 2015/2016 Winter semester, validity until: 2020/2021 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of pointsMax. počet pokusů
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 35 (35) 18
                Writen test Written test 35  18 2
        Examination Examination 65 (65) 33 3
                Writen test Written test 20  10 3
                Oral examination Oral examination 45  23 3
Mandatory attendence participation:

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2011/2012 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2008/2009 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2007/2008 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2006/2007 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2005/2006 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan
2004/2005 (N6202) Economic Policy and Administration (6202T010) Finance (00) Finance P Czech Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Subject block without study plan - EKF - P - cs 2019/2020 Full-time Czech Optional EKF - Faculty of Economics stu. block

Assessment of instruction



2018/2019 Winter
2017/2018 Winter
2016/2017 Winter
2015/2016 Winter
2014/2015 Winter
2013/2014 Winter
2012/2013 Winter
2011/2012 Winter
2009/2010 Winter