As mentioned, it can be shown that the two models are consistent; then, as is to be expected, "classical" financial economics is thus unified.
Workload The information below is provided as a guide to assist students in engaging appropriately with the course requirements. The course analyzes the determinants and behavior of employment, production, demand and profits; inflation, interest rates, asset prices, and wages; exchange rates and international flows of goods and assets; including the interaction of the real economy with monetary policy and the financial system.
FNCE Behavioral Finance There is an abundance of evidence suggesting that the standard economic paradigm — rational agents in an efficient market — does not adequately describe behavior in financial markets. In this course, Financial economics course outline will survey the evidence and use psychology to guide alternative theories of financial markets with an eye Financial economics course outline identifying frontiers and opportunities for new research.
A project proposal must be approved by the instructor. The topics that will be covered include the valuation of futures contracts on stock indices, on commodities and Treasury instruments; the valuation of options; empirical evidence; strategies with respect to these assets; dynamic asset allocation strategies, of which portfolio insurance is an example; swaps; and the use and misuse of derivatives in the context of corporate applications.
The main topics include: The course reviews the theory and empirical evidence related to the investment and financing policies of the firm and attempts to develop decision-making ability in these areas.
We emphasize the importance of differentiating the behavioral approach from information models and other more traditional methodology.
Net present value NPV is the direct extension of these ideas typically applied to Corporate Finance decisioning introduced by Joel Dean in We will argue that their systematic biases can aggregate into observed market inefficiencies.
Moral hazard, adverse selection and signalling. In order to provide a useful treatment of these topics in an environment that is changing rather rapidly, it is necessary to stress the fundamentals and to explore the topics at a technical level.
Topics to be covered include the causes and consequences of the urban fiscal crisis, the design of optimal tax and spending policies for local governments, funding of public infrastructures and the workings of the municipal bond market, privatization of government services, and public financial systems for emerging economies.
These may include leasing, mergers and acquisitions, corporate reorganizations, financial planning and working capital management, and some other selected topics. FNCE Intertemporal Macroeconomics and Finance This is a doctoral level course on macroeconomics, with special emphasis on intertemporal choice under uncertainty and topics related to finance.
Emphasis is on developing the required information for valuation from financial statements and other information sources. These include investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities, and dividend policy.
The mechanism for determining corporate value is provided by The Theory of Investment Value John Burr Williamswhich proposes that the value of an asset should be calculated using "evaluation by the rule of present worth".
Where factors additional to volatility are considered kurtosis, skew The EMH implicitly assumes that average expectations constitute an "optimal forecast", i. In the competitive limit, then, market prices will reflect all available information and prices can only move in response to news;  and this, of course, could be "good" or "bad", major or minor: In addition, we will consider how to evaluate and compare the risk exposures and performance of individual banks.
Coursepack and a recommended text varies by instructor. In this course, we will survey the evidence and use psychology to guide alternative theories of financial markets.
In addition to analyzing specific types of fixed income securities, there will be an examination of the tools used in bond portfolio management.
Using case studies, the course surveys the drivers of success in the transactions. A heavy reliance will be placed on analysis of financial data.
Indicated in the announcement of seminar topics before the Auction. There are a few exceptions to this rule.
The course emphasizes the use of economic theory to understand the workings of financial markets and the operation and impact of government policies. FNCE Corporate Restructuring The objective of this course is to familiarize students with financial, legal and strategic issues associated with corporate restructuring process.
Main focus of the course will be on the restructuring of financially distressed firms. FNCE Supervised Study in Finance Integrates the work of the various courses and familiarizes the student with the tools and techniques of research. Every semester a list of seminars offered will be published.
Under these conditions investors can then be assumed to act rationally: Tutorials are an important component of your learning in this course.
What is required though is a theory for determining the appropriate discount rate, i. Wharton students are required to take FNCE FNCE International Corporate Finance This course analyzes financial problems corporations face that result from operating in an international environment.
The primary objective is to provide a framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets.
It is useful in that it simplifies the estimation of correlation between securities, significantly reducing the inputs for building the correlation matrix required for portfolio optimization.The course will appeal to anyone considering a career as a financial analyst, portfolio manger or in wealth management.
It will also aid in preparing for the preliminary exams of various professional designations. Econ A Page 1 of 4 Financial Economics (Econ A) Course Syllabus Yan Zhao Financial Economics Office: Sachar (PHD room) Econ A.
Course Description This course is designed to provide both a self contained study of the principles of financial economics, and a bridge between courses such as International Financial Institutions and Markets I or Business Finance II and third year finance courses.
It includes a critical discussion. Financial econometrics is the branch of financial economics that uses econometric techniques to parameterise these relationships.
Mathematical finance is related in that it will derive and extend the mathematical or numerical models. McMaster University Department of Economics ECONOMICS 2I03 Financial Economics COURSE OUTLINE Spring Instructor: Rizwan Tahir Email: [email protected] MIT Economics courses available online and for free.
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