Course Details in 2024/25 Session

Module Title	LM Advanced Asset Pricing
School	Birmingham Business School
Department	Economics
Module Code	07 40051
Module Lead	Dr Gunes Bebek
Level	Masters Level
Credits	20
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	None
Exclusions
Description	The module provides students with the analytical tools of advanced financial economics theory. Using stochastic calculus, optimal control and martingale methods, the module will cover a wide range of topics that include dynamic asset pricing models, optimal consumption and portfolio theory, equilibrium models of the term structure of interest rates, option pricing of interest rates and stocks based on arbitrage and general equilibrium models, incomplete markets and portfolio optimisation in incomplete markets.
Learning Outcomes	By the end of the module students should be able to: Evaluate and appraise the theoretical approaches for understanding asset pricing. Apply the theory to explain asset pricing to real world scenarios. Critically evaluate how the behaviour of asset prices influence household portfolio choice. Identify and compare perspectives on the interaction between the macroeconomy and asset prices. Develop problem solving, numeracy and quantitative skills.
Assessment
Assessment Methods & Exceptions	Assessment: (1750 word equivalent) problem set (50%). 1.5 hour exam (50%). Reassessment: Students resit failed component: (1750 word equivalent) problem set (50%). 1.5 hour exam (50%).
Other
Reading List