Introduction to finance, Functions of Finance, Principles of Finance, Agency Problem, Financial System, Future value, Present value, Future value versus present value, Future value of an annuity, Present value of an annuity, Ordinary annuity versus annuity due, Concept of portfolio, Calculation of expected return and risk of a portfolio, Calculation of correlation coefficient, Comparison between risk-return of an individual investment and a portfolio, Process of diversification and risk reduction through it, Concept of systematic and unsystematic risk, Concept of beta, Portfolio beta, Relationship between risk and rates of return, Security market line, Market risk premium, Capital Asset Pricing Model, Types of bonds: Discount and premium bond, Bond rating, Junk and investment grade bond, Yield to Maturity, Factors affecting bond price, Definition and use of capital budgeting in business, Techniques of project evaluation: Payback period, Internal rate of return, Net present value, Profitability index, Independent project, Dependent project, Mutually exclusive project.