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Module Title
LH Economics of Financial Markets
School
Birmingham Business School
Department
Birmingham Business School
Module Code
08 30413
Module Lead
TBC
Level
Honours Level
Credits
10
Semester
Semester 2
Pre-requisites
Co-requisites
Restrictions
Available to students studying in Dubai. Available to all students who have been allowed onto the final year of a degree programme in the Department of Economics
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
By the end of the 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.