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      WELCOME_OBA3105_INTRODUCTION TO FINANCE_BBAIB_ODL

      This is Introduction to Finance OBA 3105, a core subject in Bachelor of Business Administration in International Business (BBAIB)_ODL

      DESCRIPTION OF THE COURSE

      This module is designed to provide students with a strong foundation in finance that allows them to understand and apply the concepts in the world of finance as well as to focus their attention to certain issues they can further explore. which applicable for both in personal and managerial finance. At the end of the course, students can recognize relationship between finance and other business disciplines, as well as to be able to use synergy of those disciplines in decision making.

      AIM OF THE COURSE

      The overall aim of the module is to give students an exposure to the basic business finance theory both quantitative and qualitative with some simple applications.

      • Specific topics covered will include time value of money, the role of the financial markets in company financing, the nature and role of financial instruments, sources of financial information, evaluation of proposed capital expenditure, and cost of capital and the returns to providers of finance.
      • This is an introduction to the fundamental concepts of business finance. The students will be exposed to the time value of money concept, the assets evaluation, the capital budgeting, the capital structure, and the cost of capital, and working capital management.

      COURSE LEARNING OUTCOME

      At the end of the course the students will be able to:

      • Discuss the principles of finance and the roles of financial market that underline the finance discipline.(C2, PLO1)
      • Demonstrate the concept of time value of money and various decision making techniques in financial planning. (C3,PLO8)
      • Calculate the value of bonds and stock in a market place (C3,PLO8)

      SUPPORT AND CONTACT DETAILS

      • Name: Mimi Suriaty Binti Haji Abdul Rani
      • Email : msuriaty@nilai.edu.my
      • Consultation Hours: Wednesday (08:00 am – 10:00 am) and Thursday (08:00 am – 10:00 am


      Lecturer Image
◄Chapter 5 – Capital BudgetingChapter 6 – Risk and Return_Part 2►

Chapter 6 – Risk and Return_Part 1

  • Chapter 6 – Risk and Return_Part 1

    CHAPTER 6 : RISK AND RETURN

    WEEK 8 (Lecture) and (Tutorial)

    SYNOPSIS / OVERVIEW

    Lesson 6 and 7 provides an explanation of the relationship between risk and return. Every investment decision carries a certain amount of risk. Therefore, the role of the financial manager is to understand how to calculate the "riskiness" of an investment so that he or she can make sound financial and business decisions. This relationship between risk and return is explained in this lesson. Specifically, student will learn how to compute the level of risk by calculating expected values and the standard deviation. Also, student will learn about handling risk in a portfolio with different investments and how to measure the expected performance of a stock investment when it is being affected by the overall performance of a stock market.

    Here are the main topics to be covered in Chapter 6 (Week 8):

    • Expected Returns and Variances
    • Portfolios
    • Announcements, Surprises, and Expected Returns
    • Risk: Systematic and Unsystematic
    • Diversification and Portfolio Risk

    LEARNING OUTCOMES

    By the end of this lesson, student should be able to:

    • Calculate expected returns.
    • Identify the impact of diversification.

    Risk and Return in Portfolio Investments - MBA Knowledge Base

    REQUIRED READINGS

    Chapter 6: Risk and Return

    Brigham E. and Houston J. Fundamentals of Financial Management. 14th ed., South-Western College Pub., 2016.

    Chapter 8: Risk and Return

    Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.

◄Chapter 5 – Capital BudgetingChapter 6 – Risk and Return_Part 2►