| Detailed information |
| Pre-requisites |
KS Introduction to Microeconomics AND IK Introduction to Microeconomics
|
| Original study plan |
Bachelor's programme International Business Administration 2021W |
| Objectives |
Students will acquire a basic understanding of core theoretical concepts pertaining to financial markets which are embedded in simple static models of financial economics. The students will have a theory-based understanding of the determinants of the real interest rate and how to measure and price financial risk.
|
| Subject |
Clarification of the following basic terms will be covered:
- Introduction: History of financial markets
- Complete Financial markets under certainty
- Consumption and saving
- Equilibrium real interest rate
- Present value asset pricing
- Uncertainty and risk in financial markets
- Individual decisions under risk and the expected utility concept
- Optimal Portfolios under risk
- Consumption based asset pricing and the Capital Asset Pricing Model
- Financial crisis and investor behaviour
|
| Criteria for evaluation |
Exam, Assignments
|
| Methods |
Lecture, practice exercises, contributions by students
|
| Language |
English |
| Study material |
Eichberger; Harper, Financial Economics, Oxford University Press, 1997
|
| Changing subject? |
No |
