- •2. Intertemporal choice problem as foundation of the modern theory of finance.
- •3. Basic economic theory of risk. Expected utility function, risk premium and risk aversion measures.
- •4. Technology, profit maximization and theory of firm and industry supply
- •5. Production costs in short run vs long run and cost minimization problem.
- •Variable Costs
- •Isocost Lines
- •6. Types of industrial markets. The model of perfect competition.
- •7. The theory of monopoly. State regulation of monopoly markets.
- •8. (И.К.)Models of oligopoly and game theory applications
- •9. 9. Institutional foundations of economic systems. The economic theory of property rights.
- •10. Transaction costs: the origin, nature, classification, measurement problems.
- •11. Theory of information, properties, info asymmetry and methods of overcoming it
- •Information asymmetry
- •12. Gdp as an indicator of economic results of the macroeconomic system.
- •Income approach
- •13. Aggregate demand and aggregate supply. The ad-as model.
- •14. Consumption, savings and investment. “Keynesian Cross”.
- •15. Money market. The demand for money and supply, factors that determine them. Equilibrium in the money market.
- •16.Joint balance of real and monetary sectors of the economy (model is-lm).
- •17. Cycles of economic dynamics. Sources of cyclical fluctuations in economic conditions.
- •18. Inflation, its types and methods of measurement. Factors and consequences of inflation. Anti-inflationary policies.
- •19. Disequilibrium in the labor market. Unemployment and its types and methods of measurement.
- •20.Globalization and the polarization in the modern world economy.
- •21.General economic equilibrium in an open economy (model Mandell - Fleming).
- •Is components
- •22.(И.К.)Efficient Market Hypothesis (emh): Concept, Forms, Arguments for and against.
- •23. Economic Data and Econometric Analysis. Four types of Economic Data. Role of Econometrics. Main Application of Econometrics.
- •24. Financial Econometrics, it’s object. Type of equations in mathematical modeling: behavioral equations and identities.
- •25,26,27,29 Simple regression analysis. The Simple Linear Model. Least Squares Regression. Interpretation of a Regression Equation.
- •28.Ordinary Least Squares (ols). The Gauss – Markov Theorem.
- •30.Heteroscedasticity. Possible Causes of Heteroscedasticity. The Goldfeld–Quandt Test.
- •31.Autocorrelation. Possible Causes of Autocorrelation. The Durbin–Watson Test.
- •32.Multiple Regression Analysis. Derivation of the Multiple Regression Coefficients.
- •33.Properties of the Multiple Regression Coefficients: unbiasedness, efficiency, precision, consistency.
- •34.Multiple Regression Analysis. Problem of Multicollinearity.
- •35. Purchasing Power Parity Theory: Concept, Forms, Application
- •36. Fisher Effect Parity Theory: Concept, Application
- •37 International Fisher Effect Parity Theory: Concept, Application
- •38. Interest Rate Parity Theory: Concept, Application
- •39. The composition of the global financial market: instruments, participants, sources of information.
- •41. Types of banks and their role in the international financial market.
- •42. The global equities market: size, indicators, principles of organization.
- •43. The global debt securities market: composition, principles of organization.
- •44. The international debt securities: types and organization.
- •45. The government bond markets: size, composition, significance.
- •46. Mortgage-backed securities: mechanism of issuance, the role in the international financial crisis of 2007-2009.
- •47. Exchange-traded derivatives: types, functions, mechanism of trading.
- •48.Otc derivatives. Swaps.
- •49. Types of institutional investors and their role in the global financial markets.
- •50. The functions of the international financial organizations (imf, World Bank, bis).
- •International trade financing
- •52. International banking: the structure and operational function, the services offered, and measures to improve the efficiency and effectiveness of the international banking organization.
- •53. The major issues in International banking: international money laundering, international banking crisis, regulation of international banking, and offshore banking markets.
- •54. Acquisitions and Mergers in Financial Services Management.
- •55.Measuring and evaluating the performance of banks: financial ratio analysis, profitability analysis.
- •57. Bank Financial Management:
- •58.(И.Р.)Requirements for an effective audit and evaluation of evidence (Не полностью описал)
- •59. The audit process and audit report
- •60. Generally Accepted Auditing Standards and Code of Professional Conduct
- •Accounting principles;
- •Confidential client info not disclose without specific consent.
- •61. Cost concepts, classification, and allocation.
- •62. Job order costing system & cost flow
- •63. Process costing and equivalent production
- •65.(И.Р.)Cost behavior and cvp analysis
- •66. Accounting Cycle, Generally Accepted Accounting Principles, and Financial Statements
- •Accounting Cycle – Steps During the Accounting Period
- •Accounting Cycle: Steps at the end of the accounting period
- •67. Merchandising operations & inventories
- •Inventory Costing Methods
- •Perpetual fifo
- •Perpetual lifo
- •68. Internal control, cash and receivables
- •69. Current & long term Liab.
- •70.Long term Assets.
- •71. Contributed Capital & corporate statements.
- •72.(И.Р.)Cash flow statement
- •73. Accounting Rate of Return Method as an Investment Rule. Application and possible Problems
- •74. Payback Method as an Investment Rule. Application and possible Problems.
- •75. Internal Rate of Return Method as an Investment Rule. Application and possible Problems.
- •76. Profitability Index Method as an Investment Rule. Application and possible Problems.
- •1) The method requires an estimate of the cost of capital in order to calculate the profitability index
- •2) The method may not give the correct decision when used to compare mutually exclusive projects.
- •77. Net Present Value Method as an Investment Rule. Application and possible Problems.
- •78. Capital Structure Concept.
- •79. Dividend Policy
- •80. Arbitrage Pricing Theory (apt)
- •81. Capital Asset Pricing Model (capm)
- •82. Fama and French Three Factor Model of Assets Pricing
- •83. Duration concept, application, concept of convexity, and how convexity affects macalay’s duration
- •83. Duration concept, application, concept of convexity, and how convexity affects macalay’s duration
- •84. Valuation based on Price Multiples: p/e, p/bv, p/s.
- •85. (И.К.)Asset Based Valuation Model, Residual Income Valuation Model Asset-based valuation
- •86.(И.Р.)Dividend Discount Model
- •87. Discounted Cash Flow (dcf) Valuation Model
- •88. Capital Structure: Differences between Companies
- •89. Capital structure: Differences between Countries.
- •90. Exporting as a foreign market mode, merits, demerits
- •91. Collaborative Arrangements: Licensing, Franchising, Management Contracts
- •92. (И.К.)Risky assets and portfolio optimization problem.
- •Investors can use either a top-down or bottom-up approach:
- •95. Credit Risk Models
- •96. International Diversification: investing in different markets.
- •97. Translation exposure
- •98. Transaction Exposure.
- •99. Operational Exposure
- •100.(И.Р.)Foreign Direct Investments: Joint Ventures, wholly owned Subsidiaries
- •101. Securitization (s): creation of abSs, participants and functions, securitization’s impact and risks, regulators’ concerns.
- •103. Classification and comparative characteristics of derivatives.
- •1.By the relationship between the underlying asset and the derivative :
- •3.By the market in which they trade:
- •1.Call and Put options
- •2.Exchange-traded or Over-the-counter (otc) options
- •105. Swaps: concept, types, strategies for using
- •106. Futures: concept, types, strategies for using
105. Swaps: concept, types, strategies for using
Swap is a derivative in which counterparties exchange cash flows of one party's financial instrument for those of the other party's financial instrument. Specifically, the two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap. The swap agreement defines the dates when the cash flows are to be paid and the way they are calculated.
Most swaps are traded over-the-counter (OTC), "tailor-made" for the counterparties. Some types of swaps are also exchanged on futures markets such as the Chicago Mercantile Exchange Holdings Inc., the largest U.S. futures market, the Chicago Board Options Exchange, IntercontinentalExchange and Frankfurt-based Eurex AG.
Types of SWAPs:
1.Interest rate swap- is the exchange of a fixed rate loan to a floating rate loan. The life of the swap can range from 2 years to over 15 years. The reason for this exchange is to take benefit from comparative advantage. Some companies may have comparative advantage in fixed rate markets while other companies have a comparative advantage in floating rate markets. When companies want to borrow they look for cheap borrowing i.e. from the market where they have comparative advantage. However this may lead to a company borrowing fixed when it wants floating or borrowing floating when it wants fixed. This is where a swap comes in. A swap has the effect of transforming a fixed rate loan into a floating rate loan or vice versa. For example, party B makes periodic interest payments to party A based on a variable interest rate of LIBOR +70 basis points. Party A in return makes periodic interest payments based on a fixed rate of 8.65%.
2. Currency swap- involves exchanging principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency. Just like interest rate swaps, the currency swaps are also motivated by comparative advantage.
3. Credit default swap (CDS) is a contract in which the buyer of the CDS makes a series of payments to the seller and, in exchange, receives a payoff if an instrument - typically a bond or loan - goes into default (fails to pay). CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the events specified in the contract occur. Unlike an actual insurance contract the buyer is allowed to profit from the contract and may also cover an asset to which the buyer has no direct exposure.
4. Other types. As the swaps are not standardized and usually traded on OTC the variety of Swaps is great because the counterparties can agree about different terms and make an appropriate contract according to these terms).
- A total return swap is a swap in which party A pays the total return of an asset, and party B makes periodic interest payments.
-An option on a swap is called a swaption. These provide one party with the right but not the obligation at a future time to enter into a swap.
- An Amortising swap is usually an interest rate swap in which the notional principal for the interest payments declines during the life of the swap, perhaps at a rate tied to the prepayment of a mortgage or to an interest rate benchmark such as the LIBOR. It is suitable to those customers of banks who want to manage the interest rate risk involved in predicted funding requirement, or investment programs.
-A Zero coupon swap is of use to those entities which have their liabilities denominated in floating rates but at the same time would like to conserve cash for operational purposes.
-A Deferred rate swap is particularly attractive to those users of funds that need funds immediately but do not consider the current rates of interest very attractive and feel that the rates may fall in future.
-An Accreting swap is used by banks which have agreed to lend increasing sums over time to its customers so that they may fund projects.
-A Forward swap is an agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a forward start swap, delayed start swap, and a deferred start swap