ECONG014 - Topics in Money and Finance
Aims:
The aim of the course is to provide students with a thorough understanding of core concepts and methods of financial economics. The course will also offer an introduction to active areas of research in finance that students may consider for further study and independent research.
Course outline:
In particular, the course will focus on asset pricing and
portfolio theory. The course is divided into two parts. The first part
discusses models in which market participants have the same
information. The second focuses on models where market participants can
have different information. It also briefly discusses models of
behavioural finance. In the first part, we will cover topics such as
Arrow-Debreu securities, complete and incomplete markets, mean-variance
analysis, capital asset pricing model (CAPM), arbitrage pricing theory
(APT). In the second part, we will offer an introductory study of
market microstructure, asymmetric information, rational expectations
models, sequential trade models, market efficiency, no trade theorems
and behavioural finance. We will discuss how these models can help us
understand herd behavior, financial crises, booms and crashes.
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Taught by: |
Antonio Guarino |
| Assessment: | 2 hours of lectures per week and 4 problem classes with written publish now assignments. The course will be examined by a 2-hour written exam in Term 3. |
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Suitable for: |
Graduate students |
| Prerequisites: | None |
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Moodle page: |
ECONG014 |
