| Detailed information |
| Pre-requisites |
(*)Fach Einführung in die Betriebswirtschaftslehre, Fach Einführung in die Volkswirtschaftslehre, Fach Kernkompetenzen I aus Volkswirtschaftslehre UND zusätzliche positive Absolvierung KS Wachstum, Konjunktur und Wirtschaftspolitik oder KS Balance of Payments and Exchange Rates
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| Original study plan |
Bachelor's programme Business and Economics 2021W |
| Objectives |
Students will acquire a basic understanding of core theoretical concepts pertaining to financial markets which are embedded in a simple static model of financial economics.
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| Subject |
Introduction: Financial Terms and Concepts
Systems of Financial Markets
Spot Markets
Contingent commodities and contracts
Complete Financial Markets
Basic and Derived Securities
Return expectations and the concept of arbitrage-free prices
Arrow/Debreu securities
Ordinary Securities Markets
Concept of 'no free lunch'
Risk-neutral valuation: forwards & options
Individual Decision-Making Under Uncertainty
Expected utility
Optimal portfolio of securities
Basics of portfolio management
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| Criteria for evaluation |
Written final examination 90%, exercises, contributions 10%
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| Methods |
Lecture, practice exercises, contributions by students
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| Language |
German |
| Study material |
Reading:
Eichberger; Harper, Financial Economics, Oxford University Press, 1997
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| Changing subject? |
No |
| Earlier variants |
They also cover the requirements of the curriculum (from - to)
2IFMFMTK: KS Financial Markets (2001W-2015S)
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