Content
The first part of the course provides an overview about common terms and methods used in investment and finance. In particular, these include the calculation of interest and annuities. Furthermore, static and dynamic methods of investment calculation are discussed. Emphasis is put on the weaknesses these methods entail, particularly with regard to sustainability. Moreover, simultaneous investment and consumption decisions are analyzed by means of theoretical models. The second part of the module presents typical characteristics of financial instruments. Further issues are liquidity protection, costs of capital and the capital structure. In particular, the disincentives, which finance induces and possible solutions for these are discussed. Thereby ways of internalizing externalities in order to increase sustainability are depicted.
