30055 - FINANCIAL ECONOMICS
Department of Finance
Course taught in English
Course Director:
CHRISTIAN SKOV JENSEN
CHRISTIAN SKOV JENSEN
Suggested background knowledge
Students are expected to have completed modules in Calculus and Statistics to feel at ease with this course.
Mission & Content Summary
MISSION
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.
CONTENT SUMMARY
The main topics of the course are:
- Portfolio selection.
- Equilibrium asset pricing.
- Arbitrage.
- Fixed income securities.
- Derivatives.
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
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.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
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.
Teaching methods
- Face-to-face lectures
- Exercises (exercises, database, software etc.)
DETAILS
In exercise classes, the teacher goes through exercises on the Bboard that are related to the topics covered in the lectures.
Assessment methods
Continuous assessment | Partial exams | General exam | |
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x |
ATTENDING AND NOT ATTENDING STUDENTS
The final exam tests the student in the topics covered during lectures and exercise classes.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
- BODIE, KANE, MARCUS, Investments, McGraw Hill, eleventh edition (TBA).
Last change 13/12/2020 17:14