FM305 Half Unit
Advanced Financial Economics
This information is for the 2022/23 session.
Teacher responsible
Dr Georgy Chabakauri and Prof Dimitri Vayanos
Availability
This course is compulsory on the BSc in Finance. This course is not available as an outside option nor to General Course students.
Pre-requisites
Students must have completed FM213 Principles of Finance.
Course content
This course will present modern theories of financial markets and asset valuation. The first part of the course will cover the principle of no arbitrage, state prices and the stochastic discount factor, utility functions and portfolio choice, and equilibrium pricing and risk-neutral pricing. The second part of the course will build on this material and develop additional tools to explore the effects of frictions in financial markets, such as asymmetric information, costs of search and market participation, leverage constraints and delegated portfolio management.
Teaching
33 hours of seminars in the MT.
This course is taught in the interactive lecturing format. There is no distinction between lectures and classes/seminars; there are “sessions” only, and the pedagogical approach in each session is interactive.
Indicative reading
Teaching notes will be provided.
Assessment
Continuous assessment (100%) in the MT.
Key facts
Department: Finance
Total students 2021/22: 47
Average class size 2021/22: 47
Capped 2021/22: No
Value: Half Unit
Course selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Problem solving
- Application of information skills
- Application of numeracy skills
- Commercial awareness
