Programme And Module Handbook
 
Course Details in 2016/17 Session


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Module Title LH Economics of Financial Markets
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 08 08380
Module Lead John Fender
Level Honours Level
Credits 10
Semester Semester 2
Pre-requisites
Co-requisites
Restrictions Available to all students who have been allowed onto the final year of a degree programme in the Department of Economics (including Joint Honours) or who have passed 08 03338 Microeconomics A and 08 08336/08 08338 Macroeconomics AB
Contact Hours Lecture-20 hours
Guided independent study-80 hours
Total: 100 hours
Exclusions
Description

This module examines economic theories of financial market behaviour and discusses their empirical relevance. The first part of the module is focused on the micro foundation of the financial economics: choice under uncertainty, expected utility theorem, measuring risk and risk aversion, the efficiency of financial markets. The second part of the module is based on the Portfolio Investment Decisions, mainly the Mean-Variance model of Markowitz and the Capital Asset Pricing Model (CAPM). The third part of the module explores most complex pricing model as consumption-based CAPM, Arbitrage Pricing Theory (APT) and Arrow-Debreu Asset Pricing Theory.

Learning Outcomes

On completion of this module students should be able to:

  • demonstrate systematic knowledge and understanding of the microeconomic basis of financial economics; 
  • analyse the behaviour of asset markets and prices using theoretical models;
  • apply these models to specific context and critically evaluate their empirical implementation.
Assessment 08380-01 : Exam : Exam (Centrally Timetabled) - Written Unseen (100%)
Assessment Methods & Exceptions 2 hr examination (100%)
Other none
Reading List