FACULTY OF BUSINESS
Department of Economics
ECON 414 | Course Introduction and Application Information
Course Name |
Financial Economics
|
Code
|
Semester
|
Theory
(hour/week) |
Application/Lab
(hour/week) |
Local Credits
|
ECTS
|
ECON 414
|
Fall/Spring
|
3
|
0
|
3
|
6
|
Prerequisites |
None
|
|||||
Course Language | ||||||
Course Type |
Elective
|
|||||
Course Level |
-
|
|||||
Mode of Delivery | - | |||||
Teaching Methods and Techniques of the Course | - | |||||
Course Coordinator | ||||||
Course Lecturer(s) | ||||||
Assistant(s) |
Course Objectives | The aim of this course is to introduce students to some basic concepts in financial economics and to establish its roots in micro and macroeconomics. The main objective is to introduce key concepts and theories in economics that are useful in guiding decision makers in financial markets. |
Learning Outcomes |
The students who succeeded in this course;
|
Course Description | This course takes the student from the level of microeconomics principles to current theories and topics in financial economics. Both static and dynamic models are explored. Asset pricing models with and without arbitrage opportunities are discussed. Asset pricing puzzles are investigated. Modigliani Miller arguments on capital structure are introduced. Binomial option pricing model is developed. |
|
Core Courses | |
Major Area Courses | ||
Supportive Courses | ||
Media and Management Skills Courses | ||
Transferable Skill Courses |
WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES
Week | Subjects | Related Preparation |
1 | Introduction | Fabozzi Ch.1 |
2 | Consumer Financial Decisions | Fabozzi Ch.2 |
3 | Producer Financial Decisions | Fabozzi Ch.3 |
4 | Firm Valuation | Fabozzi Ch.4 |
5 | Firm Valuation cont’d | Fabozzi Ch.4 |
6 | Firm Financing and Investment Decisions | Fabozzi Ch.5,6 |
7 | Midterm | |
8 | Microeconomic Foundations of Financial Economics | Fabozzi Ch.9 |
9 | Contingent Claims and Contingency Strategies | Fabozzi Ch.10 |
10 | Risk and Risk Management | Fabozzi Ch.11 |
11 | Risk Measures | Fabozzi Ch.12 |
12 | Mean-Variance Portfolio Choice | Fabozzi Ch.13 |
13 | CAPM and APT | Fabozzi Ch.14,15 |
14 | Factor Models | Fabozzi Ch.15 |
15 | Semester Review | |
16 | Final Exam |
Course Notes/Textbooks | Financial Economics, Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou ISBN: 978-0-470-59620-3 |
Suggested Readings/Materials |
EVALUATION SYSTEM
Semester Activities | Number | Weigthing |
Participation | ||
Laboratory / Application | ||
Field Work | ||
Quizzes / Studio Critiques | ||
Portfolio | ||
Homework / Assignments |
2
|
30
|
Presentation / Jury | ||
Project | ||
Seminar / Workshop | ||
Oral Exams | ||
Midterm |
1
|
30
|
Final Exam |
1
|
40
|
Total |
Weighting of Semester Activities on the Final Grade |
3
|
60
|
Weighting of End-of-Semester Activities on the Final Grade |
1
|
40
|
Total |
ECTS / WORKLOAD TABLE
Semester Activities | Number | Duration (Hours) | Workload |
---|---|---|---|
Theoretical Course Hours (Including exam week: 16 x total hours) |
16
|
3
|
48
|
Laboratory / Application Hours (Including exam week: '.16.' x total hours) |
16
|
0
|
|
Study Hours Out of Class |
14
|
3
|
42
|
Field Work |
0
|
||
Quizzes / Studio Critiques |
0
|
||
Portfolio |
0
|
||
Homework / Assignments |
2
|
10
|
20
|
Presentation / Jury |
0
|
||
Project |
0
|
||
Seminar / Workshop |
0
|
||
Oral Exam |
0
|
||
Midterms |
1
|
20
|
20
|
Final Exam |
1
|
40
|
40
|
Total |
170
|
COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP
#
|
Program Competencies/Outcomes |
* Contribution Level
|
||||
1
|
2
|
3
|
4
|
5
|
||
1 | To be able to acquire a sound knowledge of fundamental concepts, theories, principles and methods of investigation specific to the economic field. |
X | ||||
2 | To be able to apply adequate mathematical, econometric, statistical and data analysis models to process economic data and to implement scientific research for development of economic policies. |
X | ||||
3 | To be able to participate in academic, professional, regional, and global networks and to utilize these networks efficiently. |
|||||
4 | To be able to have adequate social responsibility with regards to the needs of the society and to organize the activities to influence social dynamics in line with social goals. |
X | ||||
5 | To be able to integrate the knowledge and training acquired during the university education with personal education and produce a synthesis of knowledge one requires. |
|||||
6 | To be able to evaluate his/her advance level educational needs and do necessary planning to fulfill those needs through the acquired capability to think analytically and critically. |
X | ||||
7 | To be able to acquire necessary skills to integrate social dynamics into economic process both as an input and an output. |
|||||
8 | To be able to link accumulated knowledge acquired during the university education with historical and cultural qualities of the society and be able to convey it to different strata of society. |
|||||
9 | To be able to take the responsibility as an individual and as a team member. |
|||||
10 | To be able to attain social, scientific and ethical values at the data collection, interpretation and dissemination stages of economic analysis. |
|||||
11 | To be able to collect data in economics and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1) |
|||||
12 | To be able to speak a second foreign at a medium level of fluency efficiently. |
|||||
13 | To be able to relate the knowledge accumulated throughout human history to their field of economics. |
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
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