This module provides students with an understanding of the economic underpinnings (the backbone) of finance. In other words, students are taught a deep understanding of the economic models on which corporate valuation, asset pricing and financial markets are based.
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. Gain a comprehensive understanding of the role of financial market institutions and regulatory frameworks. E. Develop the ability to critically analyze economic decision-making theories through the lens of behavioral sciences.
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.