Financial Markets

This course is an advanced class in the treatment of microeconomic research questions. We discuss personal decisions about savings and loans and how decisions are made under uncertainty. The students are further introduced to financial market adaptations, where we discuss, among other things, why financial capital is distributed on different assets.

Knowledge

You learn

• theoretical models for the functioning of financial markets and results from empirical research
• what functions financial markets have in society
• models for valuation of such financial assets as stocks, bonds, and derivatives
• theories for the term structure of interest rates

Skills

You should be able to

• understand and explain what functions the financial market has in the broader economy
• distinguish between systematic and unsystematic risk
• value financial assets
• measure bond risk

General competence

You should be able to

• follow economic reasoning related to the course in the public debate and professional reports

2 hours of lectures every week. Information about tutorials and compulsory activity will be announced at the beginning of the term.