363-1000-00L Financial Economics
| Semester | Spring Semester 2019 |
| Lecturers | A. Bommier |
| Periodicity | yearly recurring course |
| Language of instruction | English |
Courses
| Number | Title | Hours | Lecturers | ||||
|---|---|---|---|---|---|---|---|
| 363-1000-00 V | Financial Economics | 2 hrs |
| A. Bommier |
Catalogue data
| Abstract | This is a theoretical course on the economics of financial decision making, at the crossroads between Microeconomics and Finance. It discusses portfolio choice theory, risk sharing, market equilibrium and asset pricing. |
| Learning objective | The objective is to make students familiar with the economics of financial decision making and develop their intuition regarding the determination of asset prices, the notions of optimal risk sharing. However this is not a practical formation for traders. Moreover, the lecture doesn't cover topics such as market irrationality or systemic risk. |
| Content | The following topics will be discussed: Introduction to finance and investment planning; Option valuation; Arbitrage; Choice under uncertainty; Portfolio Choice; Risk sharing and insurance; Market equilibrium under symmetric information. |
| Literature | Suggesting readings: 1) "Investments", by Z. Bodie, A. Kane and A. Marcus, for the introductory part of the course (see chapters 20 and 21 in particular). 2) "Finance and the Economics of Uncertainty" by G. Demange and G. Laroque, Blackwell, 2006. 3) "The Economics of Risk and Time", by C. Gollier, and Other readings: - "Intermediate Financial Theory" by J.-P. Danthine and J.B. Donaldson. - Ingersoll, J., E., Theory of Financial Decision Making, Rowman and Littlefield Publishers. - Leroy S and J. Werner, Principles of Financial Economics, Cambridge University Press, 2001 |
| Prerequisites / Notice | Basic mathematical skills needed (calculus, linear algebra, convex analysis). Students must be able to solve simple optimization problems (e.g. Lagrangian methods). Some knowledge in microeconomics would help but is not compulsory. The bases will be covered in class. |
Performance assessment
| Performance assessment information (valid until the course unit is held again) | |
Performance assessment as a semester course | |
| ECTS credits | 3 credits |
| Examiners | A. Bommier |
| Type | graded semester performance |
| Language of examination | English |
| Repetition | Repetition only possible after re-enrolling for the course unit. |
Learning materials
| No public learning materials available. | |
| Only public learning materials are listed. |
Groups
| No information on groups available. |
Restrictions
| There are no additional restrictions for the registration. |
Offered in
| Programme | Section | Type | |
|---|---|---|---|
| Data Science Master | Interdisciplinary Electives | W |  |
| Integrated Building Systems Master | Specialised Courses | W | |
| Management, Technology and Economics Master | Recommended Elective Courses | W | |