Aims and Fit of Module

This module provides students with a solid understanding of the economic foundations of finance - the models underpinning corporate valuation, asset pricing, and financial markets - while exploring how these markets are shaped by behavioural factors and a changing societal environment (e.g., regulation, AI, FinTech, and climate change).

Learning outcomes

A. Gain a deep understanding of utility theory, its core axioms, and the measurement of risk and risk aversion.

B. Develop the ability to analyze decision-making processes in risky situations.

C. Develop the ability to critically evaluate major economic asset pricing theories and their underlying assumptions.

D. Develop the ability to evaluate how financial markets operate and evolve within a changing societal environment (e.g., regulation, climate change, AI, and FinTech).

E. Develop the ability to critically analyze economic decision-making theories through the lens of behavioral sciences.

Method of teaching and learning

The module will comprise a combination of lectures and seminars. Main lectures will deliver key theories and concepts in the aspect of financial economics. In seminars students will have the opportunity to solve problems and numerical exercises, to review and discuss current research papers, and to present a short essay.