| CODE | BKF4121 | |||||||||
| TITLE | Financial Economics | |||||||||
| UM LEVEL | 04 - Years 4, 5 in Modular UG or PG Cert Course | |||||||||
| MQF LEVEL | Not Applicable | |||||||||
| ECTS CREDITS | 4 | |||||||||
| DEPARTMENT | Banking and Finance | |||||||||
| DESCRIPTION | Objectives: The course principally seeks to integrate the theory of finance and financial institutions into the main body of economic theory. It also concerns the role of the economist as a financial decision-maker, covering financial decision making under conditions of uncertainty. Asset Pricing Models and the role of the market portfolio are central to financial economics, and the concentration here will be on the capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory. The efficiency of capital markets is also thoroughly covered. Content: - Decision Making under Uncertainty - The nature of Financial Economics - Valuation Models for Financial Assets - Stochastic Dominance and Attitudes towards Risk - Expected Utility Theory - Asset Pricing Models - The Efficiency of Financial Markets - Risk Management Reading List: - Bodie Z, Kane, A., & Marcus A. Investments - Richard Irwin Inc 1994 (or latest edition). - Eichberger, J. & Harper, I. Financial Economics - Oxford University Press, 1997 Students will be expected to read all relevant textbook chapters covered in lectures in addition to notes and any hand-outs issued. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | |||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Andrew Neal Farrugia |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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