Course 2021-2022 a.y.

30055 - FINANCIAL ECONOMICS

Department of Finance

Course taught in English
Go to class group/s: 31 - 32
CLEAM (6 credits - II sem. - OP  |  SECS-P/01) - BESS-CLES (6 credits - II sem. - OP  |  SECS-P/01) - WBB (6 credits - II sem. - OP  |  SECS-P/01) - BIEF (6 credits - II sem. - OP  |  SECS-P/01) - BIEM (6 credits - II sem. - OP  |  SECS-P/01) - BIG (6 credits - II sem. - OP  |  SECS-P/01) - BEMACS (6 credits - II sem. - OP  |  SECS-P/01)
Course Director:
CHRISTIAN SKOV JENSEN

Classes: 31 (II sem.) - 32 (II sem.)
Instructors:
Class 31: CHRISTIAN SKOV JENSEN, Class 32: 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
  • Written individual exam (traditional/online)
     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.
Last change 22/12/2021 14:38