30055 - FINANCIAL ECONOMICS
Course taught in English
Students are expected to have completed modules in Calculus and Statistics to feel at ease with this course.
This course covers the most important areas of financial economics and investments. The successful student develops a fundamental understanding of how financial markets work and how they price financial securities and assets. As we witnessed in the recent 2008-2009 financial crisis, financial market risks can have spillovers to the whole macroeconomy. Therefore, to understand macroeconomic risks, it is important to have a solid understanding of how financial markets work.
The main topics of the course are:
- Portfolio selection.
- Equilibrium asset pricing.
- Fixed income securities.
Understand the fundamentals of financial economics, herein:
- Understanding the time value of money.
- Understanding the tradeoff between risk and expected return.
- Understanding no-arbitrage pricing.
- Understanding the benefits of diversification in portfolio choice problems.
Carry out common financial analyst tasks, such as:
- Estimating cost of capital.
- Pricing fixed income securities.
- Pricing stocks.
- Pricing derivatives.
- Carrying out optimal portfolio choice procedures.
- Face-to-face lectures
- Exercises (exercises, database, software etc.)
In exercise classes, the teacher goes through exercises on the Bboard that are related to the topics covered in the lectures.
|Continuous assessment||Partial exams||General exam|
The final exam tests the student in the topics covered during lectures and exercise classes.
- BODIE, KANE, MARCUS, Investments, McGraw Hill, eleventh edition (TBA).