[ 514IFEKFIMK21 ] KS Financial Markets

Workload Education level Study areas Responsible person Hours per week Coordinating university
3 ECTS B2 - Bachelor's programme 2. year Economics Johannes Muthers 2 hpw Johannes Kepler University Linz
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
On-site course
Maximum number of participants 100
Assignment procedure Assignment according to priority