[ 977FINEFERK19 ] KS Financial Economics and Risk

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Workload Education level Study areas Responsible person Hours per week Coordinating university
4 ECTS M1 - Master's programme 1. year Economics Johannes Muthers 2 hpw Johannes Kepler University Linz
Detailed information
Pre-requisites (*)keine (die Zulassung zum Studium vorausgesetzt)
Original study plan Master's programme Economic and Business Analytics 2019W
Objectives The course provides students with the theoretical background to understand and analyse decisions under risk. Students learn to assess risk-preferences, to measure risk and to price risk in financial markets.

Students get the tools to evaluate the efficiency and possible regulation of financial markets.

Subject 1. Decision under Risk

a. Risk Aversion
b. Measuring Risk
c. Expected Utility Theory

2. Risk Management

a. Insurance Contracts
b. Portfolio Choice

3. Asset Pricing and Financial Markets

a. Efficient Risk Allocation
b. Arrow-Debreu Securities
c. Capital Asset Pricing Model (CAPM)

4. Inefficient Financial Markets

a. Efficiency Market Hypothesis
b. Information Asymmetry, Herding, and Bubbles
Criteria for evaluation exam, assignments
Methods Interactive lecture
Language English
Study material
  • LeRoy, Stephen F., and Jan Werner. Principles of financial economics. Cambridge University Press, 2014.
  • Brunnermeier, Markus K. Asset pricing under asymmetric information: Bubbles, crashes, technical analysis, and herding. Oxford University Press on Demand, 2001.
Changing subject? No
On-site course
Maximum number of participants 200
Assignment procedure Assignment according to priority