Summary Finance EUR (IBA year 1, block 3 ENG) – Paper only

Everything you need to pass your exam

In this  summary, we will start with financing a company. What kind of things do you have to think about? Suppose Toyota wants to market a new car. How do they get the money to finance this? One option is to borrow money from the bank or to issue additional shares. What’s smarter for Toyota? Another part of the Finance section zooms in on stocks. How do you compose an optimal equity portfolio as a banker? You will see that risk and return are two important factors in the world of equities. Do we want to take more risk and thus achieve more returns? Or are you more risk averse and do you take less risk, resulting in lower returns?

Do not underestimate this partial exam! It is really a difficult part of the subject that you cannot master with an afternoon of studying, not even for a pass. So take your time and it will be all right.

In short, Reken Maar is all you need to pass Finance!