Course overview
This course provides tools and deeper understanding of financial economics thorough coverage of modern finance theory and the application of both old and new theoretical perspectives to understand the current environment for financial investment decisions. Financial Economics offers an exploration of the principles and practices that underpin financial instruments and markets. Building on foundational knowledge, this course delves into topics such as risk management, asset pricing, market efficiency, and behavioural finance. The course covers key financial theories and models, including the Capital Asset Pricing Model (CAPM) and Modern Portfolio Theory (MPT), and apply quantitative techniques to analyse financial data and assess market conditions. The course prepares students to make informed financial decisions and understand the complex dynamics of financial markets and institutions.
- Foundational Principles Of Financial Economics
- Pricing Risk
- Applied Topics In Financial Economics
Course learning outcomes
- Analyse and apply core financial concepts such as risk, return, and the time value of money to a variety of financial instruments and markets
- Demonstrate the ability to evaluate and apply key financial models and theories, including the Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), and Modern Portfolio Theory (MPT), to make informed investment decisions
- Assess the concepts of market efficiency and behavioural finance, exploring how psychological factors influence financial markets, instruments and institutions
- Analyse and implement quantitative techniques such as regression analysis, Monte Carlo simulations, and Value at Risk (VaR) to analyse financial data and assess market risks
- Demonstrate a comprehensive understanding of the structure, functions, and roles of various financial markets and institutions, including their impact on financial and economic stability and growth