Learning outcomes:

The purpose of the course is to analyze principles, theories, models, and practices within the context of financial investment decision making.   Τhe course initially presents the concept of the time value of money. Then it presents a set of practical methods to assess potential projects or investments on stocks and bonds.

Upon successful completion of the course the student will:

  • Be aware of the importance of the time value of money and how to calculate it.
  • Learn to use the various investment valuation methods by recognizing their advantages and disadvantages
  • Learn to valuate stocks and bonds

Critically evaluate, assess, and compare the performance of various investments in securities, or portfolios.


  • Code :             X33
  • Semester :     3rd
  • Effort :              7.5 ECTS
  • Hours :             4 per week
  • Type :                Economics
  • Department : Economics
  • Exams :             Yes

Course Contents:

Will the lesson include the following sections:

1st Time Value of Money:

Simple interest, compound interest, future and present value of money, interest rate adjustments, annuities etc.

2nd Capital Budgeting

Payback Period, Capital Return Method, Profitability Ratio, Present Value Method, Internal Rate of Return, Modified Internal Rate of Return.

3rd Stocks and Modern Portfolio Theory

Valuation of Common Stocks, Risk and return, Portfolio Theory, the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Model

4th Fixed income instruments

Bonds, Valuation of Bonds, Managing Bond Portfolios