FM436
Financial Economics
This information is for the 2015/16 session.
Teacher responsible
Prof Ian Martin and Dr Igor Makarov
Dr Martin Oehmke
Availability
This course is compulsory on the MRes/PhD in Finance (Route 1), MSc in Finance and Economics and MSc in Finance and Economics (Research). This course is available on the MPhil/PhD in Accounting. This course is not available as an outside option.
Pre-requisites
Mathematical background at the level of the September Courses in Mathematics and FM458 Financial Economics Preparatory Course is assumed.
Course content
Financial Economics provides students with an in-depth introduction to the theories of asset pricing and corporate finance. The course analyses investors’ behaviour, market equilibrium, the pricing of securities, the valuation of real assets, and capital structure choice. Topics in asset pricing will encompass portfolio choice, complete and incomplete markets, mean-variance portfolio theory and equilibrium asset pricing, pricing with no arbitrage, Black-Scholes and other contingent claims pricing models, and the behaviour of financial markets during crises. Topics in corporate finance will encompass valuation methods and financing decisions in the presence of taxation, agency frictions, and asymmetric information.
Teaching
40 hours of lectures and 20 hours of seminars in the MT.
Formative coursework
Problem sets, covered in classes.
Indicative reading
Will be based on: Teaching notes and journal articles, as well as J H Cochrane, Asset Pricing, Revised Edition, Princeton University Press.
Assessment
Exam (100%, duration: 3 hours) in the main exam period.
Key facts
Department: Finance
Total students 2014/15: 61
Average class size 2014/15: Unavailable
Controlled access 2014/15: No
Lecture capture used 2014/15: Yes (MT)
Value: One Unit
Personal development skills
- Problem solving
- Application of numeracy skills
- Specialist skills
Course survey results
(2011/12 - 2013/14 combined)
1 = "best" score, 5 = "worst" scoreThe scores below are average responses.
Response rate: 70.6%
Question |
Average | ||||||
---|---|---|---|---|---|---|---|
Reading list (Q2.1) |
2.2 | ||||||
Materials (Q2.3) |
2.4 | ||||||
Course satisfied (Q2.4) |
2 | ||||||
Lectures (Q2.5) |
1.9 | ||||||
Integration (Q2.6) |
1.9 | ||||||
Contact (Q2.7) |
2 | ||||||
Feedback (Q2.8) |
2.3 | ||||||
Recommend (Q2.9) |
|