154-0523/03 – Financial decision-making under risk (FDMuR)

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Ing. Tomáš Tichý, Ph.D.Subject version guarantorprof. Ing. Tomáš Tichý, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
CUL33 doc. Ing. Miroslav Čulík, Ph.D.
KRE330 doc. Ing. Aleš Kresta, Ph.D.
TIC02 prof. Ing. Tomáš Tichý, 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



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., 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

Credit - writen form Examination - composed of two parts (writen, oral)


Other requirements

There are no other requirements on students.


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

1. Fundamentals of financial decision-making 2. Utility function in decision-making 3. Portfolio theory 4. Capital asset pricing model 5. Arbitrage pricing theory 6. Real investment evaluation 7. Decisions with flexibility 8. Financial derivatives - linear 9. Financial derivatives - options 10. Corporate hedging 11. Cash management of a multinational company 12. Exchange rates forecasting

Conditions for subject completion

Full-time form (validity from: 2019/2020 Winter 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
                Písemka Written test 35  18 2
        Examination Examination 65 (65) 33 3
                Písemka Written test 20  10 3
                Ústní zkouška Oral examination 45  23 3
Mandatory attendence participation: Attendance is not compulsory.

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Conditions for subject completion and attendance at the exercises within ISP: Attendance is not compulsory. Any student, even within ISP, must fulfill standard conditions.

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2024/2025 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2023/2024 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2022/2023 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2021/2022 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2020/2021 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2019/2020 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction

2023/2024 Winter
2019/2020 Winter