Course Details in 2024/25 Session

Module Title	LM Microfoundations of Finance
School	Birmingham Business School
Department	Economics
Module Code	07 40072
Module Lead	Dr Frank Strobel
Level	Masters Level
Credits	20
Semester	Semester 1
Pre-requisites
Co-requisites
Restrictions	None
Exclusions
Description	Microfoundations of Finance is an MSc level course that covers the fundamental principles underlying modern financial theory. Using a microeconomic framework, the course will explore topics such as asset pricing, market equilibrium, and the behaviour of financial markets. The course may also explore the mathematical and statistical tools commonly used in financial analysis, including techniques for modeling risk and uncertainty. Throughout the course, students will develop a solid understanding of the microfoundations of finance and how they can be applied to real-world financial decision-making.
Learning Outcomes	By the end of the module students should be able to: Critically evaluate the microeconomic foundations of financial theory, including the role of individual decision-making and market behaviour in shaping financial outcomes. Apply advanced mathematical techniques to model and analyze financial phenomena, including asset pricing and risk management. Critically evaluate and apply theoretical frameworks to real-world financial problems, including asset pricing and portfolio management. Evaluate and compare different financial theories, models, and empirical evidence, and apply them to real-world problems and policy issues (including ethical implications) in finance. Develop critical thinking, judgement and problem-solving skills.
Assessment
Assessment Methods & Exceptions	Assessment: (1750 word equivalent) problem set (50%). 1.5 hour exam (50%). Reassessment: Resubmission of failed component(s): (1750 word equivalent) problem set (50%). 1.5 hour exam (50%).
Other
Reading List