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ECON7002 - Economics of Finance

Term 1



Aims:

  • To provide an overview of UK financial markets and institutions
  • To provide a comprehensive introduction to the theory of finance
  • To introduce some of the most important theories explaining the formulation of prices of financial assets and the role of financial markets in the optimal allocation of risk bearing

Objectives:

On successful completion of the module, students should be familiar with the basic principles and concepts in finance, including:

  • Optimal portfolios
  • Equilibrium asset pricing and allocation and optimality in financial markets
  • The role of derivative securities
  • Efficiency of financial markets
  • The Capital Asset Pricing Model
Taught by:
Giulio Seccia
Assessment: 20 hours of lectures, 4 compulsory tutorial classes with 4 accompanying problem sets. 2-hour unseen written examination in Term 3. Affiliate students leaving in December will take a 2-hour written examination set up by the Department at the end of Term 1.
Suitable for:
2nd / 3rd year Economics (L100), Econ/Geog (LL17), Phil/Econ (VL51) and 3rd year Econ/Stats (LG13), Math/Econ (G1L1/G1LC) and SCORE (GLN0) students.
Prerequisites: Students should have taken, or be concurrently taking, ECON2001: Microeconomics or STAT3004: Decision and Risk.
Moodle page:
ECON7002