Elementary finance course

   until we complete this course with videos, you may also go to our previous one: introduction to finance, with a review of accounting

See also our


 Table of contents

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  1. Difference between accounting and finance
  2. What is an investment?
  3. Physical and financial investments
  4. What is a financial product?
  5. Stocks and bonds
  6. The modelling of time
 Elementary probability theory (part 1)
  1. The modelling of uncertain future
  2. Random experiment, random variable, stability of long term results
  3. The concept of probabilities
  4. Simulations with a spreadsheet
  5. Distribution or density of a random variable
  6. Expectation of a random variable
  7. Variance and standard deviation of a random variable
  8. Gaussian random variables

 Elementary probability theory (part 2)
  • Four situations involving random variables
  • Profitability as a random variable
  • The risk of a security
  • Investors and gamblers
  • Utility of money: Saint Petersburg paradox
  • Risk aversion

 Chapter 4

 Chapter 5
  • evaluating investments
  • the role of cost accounting
  • example 1
  • example 2
  • example 3
 Chapter 6
  • bonds: new bonds
  • bonds: second hand bonds

Chapter 7
  • what is advanced finance
  • continuous time
  • option pricing
  • no arbitrage principle revisited
  • Black & Scholes formula