Economics of Financial Markets
Module Code: EC405B
Module Title: Economics of Financial Markets
- ECTS Weighting: 10
- Semester/Term Taught: Michaelmas Term
- Contact Hours: 22 hours of lectures and 5 hours of tutorials
- Module Personnel: Professor Paul Scanlon
On successful completion of this module, you will be able to:
- Synthesize a broad range of topics in modern finance;
- Apply statistical techniques to judge the empirical performance of economic theories of financial markets.
Module Learning Aims
This course is concerned with the pricing of financial assets, with the pricing and handling of risk, and with the place of the financial markets in the economy as a whole. For example, how might risk-averse investors choose an efficient portfolio of risky investments? Do stock market prices reflect all available information, or are they influenced by irrational waves of sentiment? This module assumes some previous knowledge of financial economics
Topics include the financial markets and the real economy; the CCAPM and the arbitrage pricing theory; international finance; behavioural finance.
Recommended Reading List
Cuthbertson, K. and D. Nitzsche, (2004), Quantitative Financial Economics (2nd ed.), (Chichester: Wiley).
Module Pre Requisite
EC3090 and EC3050
100% of the module mark is based on assignments due at the end of Michaelmas Term.
Course material will be available on Blackboard.