Course Code & Number
ECON 352
Course Title
Financial Economics and Financial Markets
Credit Hours/ ECTS Credits
(3+0+0) 3 TEDU Credits, 6 ECTS Credits
Mode of Delivery:
Face-to-face
Language of Instruction:
English
Pre-requisite / Co-requisite::
Pre-requisites: NONE
Co-requisites: NONE
Catalog Description
Conceptual understanding of finance. Asset pricing and modern portfolio theory. Insights into theoretical, empirical and practical issues concerning the operation of financial markets.
Course Objectives
This course describes the economic and financial environment within which businesses and government organisations operate. This course aims to explain how market systems operate and the role of specialist institutions within the markets. Students will gain an understanding of how individuals actually make financial decisions (descriptive) and guidance on how to improve financial decision making (prescriptive) in themselves and others.
Software Usage
Students will use MS Office applications (Word, Excel, Access) to work on their weekly assignments about 2 hours a week.
Course Learning Outcomes
Upon succesful completion of this course, a student will be able to
1. Discuss the importance as well as the behaviour of the financial markets in a modern market economy.
2. Explain the determination of price on bonds and other interest bearing financial instruments.
3. Have knowledge about how a central bank implements monetary policy and the impact that then will be given on the interest rates.
4. Manage risk when prices on financial as well as nonfinancial assets are determined.
5. Exhibit skills to make company valuations.
6. Make independent decisions in the field of financial economics.
7. Possess knowledge of economic basis of financial transactions, valuation of financial instruments and risks involved in financial transactions.
8. Appreciate reports in the financial press about economic developments, the financial markets and their implications for industry and commerce.
9. Employ the techniques available to evaluate financial performance and risk.
Learning Activities and Teaching Methods:
Telling/Explaining
Discussion/Debate
Questioning
Reading
Demonstrating
Problem Solving
Case Study/Scenarion Analysis
Video Presentations
Oral Presentations/Reports
Guest Speakers
Hands-on Activities
Web Searching
Assessment Methods and Criteria:
Test / Exam
Quiz
Lab Assignment
Presentation (Oral/Poster)
Assessment Methods and Criteria Others:
Recommended Reading
1. Cochrane. J.H., Asset Pricing. Princeton University Press, New Jersey, 2001.
2. Ingersoll. J.E., Theory of Financial Decision Making. Rowman & Littlefield, Maryland, 2000.
3. Howells. P. and K. Bain, The Economics of Money, Banking and Finance.; A European Text. 4th Edition, Prentice Hall, New York, 2008.
Required Reading
1. Mishkin. F., Economics of Money, Banking, and Financial Markets. 10th edition, Pearson, New York, 2011.
Learning Activities and Teaching Methods Others:
Course & Program Learning Outcome Matching:
