COURSE UNIT TITLE

: ISSUES IN FINANCIAL ECONOMICS

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
ECN 6025 ISSUES IN FINANCIAL ECONOMICS ELECTIVE 3 0 0 8

Offered By

Economics (English)

Level of Course Unit

Third Cycle Programmes (Doctorate Degree)

Course Coordinator

PROFESSOR SAADET KASMAN

Offered to

Economics (English)

Course Objective

This course is intended to introduce graduate students to the basic theoretical and empirical issues relating to the role of financial markets in the economy; investment, financing and payout decisions of firms as well as saving and investment decisions of individuals. It also develops the main ideas in finance theory, including the CAPM, arbitrage pricing and option pricing within an economic framework.

Learning Outcomes of the Course Unit

1   Acquire basic knowledge about important theories of finance such as Efficient Market Hypothesis, CAPM and APT as well as the workings of different financial markets and institutions such as Stock markets, Bond markets, Derivative markets, Insurance companies, Mutual funds and Pension Funds.
2   To be able to demonstrate investment decisions of investors using tools from economic analysis.
3   To establish an ability to relate financial markets to the rest of the economic system to be able to comprehend the reasons for financial crisis.
4   To be able to follow Financial Economics literature.
5   To be able to do research and write academic paper.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 The Investment Environment
2 Asset Classes and Financial Instruments
3 How Securities are traded
4 Learning about Return and Risk from the Historical Record
5 Risk Aversion and Capital Allocation to Risky Asset
6 Capital Asset Pricing Model
7 Midterm
8 Arbitrage Pricing Theory and Multifactor Models of Risk and Return
9 Stock Market and Bond Market
10 Banking Industry
11 Insurance Industry
12 Pension Funds
13 Mutual Funds
14 Final

Recomended or Required Reading

1. Bodie, Kane and Markus , Investments (2003), Mcgraw-Hill.
2. Lecture Notes
3. Academic papers from related literature

Planned Learning Activities and Teaching Methods

1. Lecture
2. Academic papers
3. Discussions and Presentations

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 STT TERM WORK (SEMESTER)
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE MTE * 0.35 + STT * 0.25 + FIN* 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.35 + STT * 0.25 + RST* 0.40


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will clearly define basic concepts in financal economics such as CAPM, APT, Efficient market hypothesis.
2. The learner will demonstrate understanding of different financial institutions and instruments.
3. The learner will show the outcomes of different economic policies on financial institutions.
4. The learner will evaluate the investment decisions of investors who have different risk tolarance.
5. The learner will explain the reasons of financial crisis.
6. The learner will show understanding of an academic paper in the related literature.
7. The learner will write an academic paper.

Language of Instruction

English

Course Policies and Rules

It is obligatory to attend at least 70% of the classes.

Contact Details for the Lecturer(s)

saadet.kasman@deu.edu.tr

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 14 3 42
Tutorials 14 1 14
Preparations before/after weekly lectures 14 1 14
Preparing presentations 1 35 35
Preparation for midterm exam 1 30 30
Preparing assignments 1 18 18
Preparation for final exam 1 43 43
Midterm 1 2 2
Final 1 2 2
TOTAL WORKLOAD (hours) 200

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10
LO.1455
LO.2554
LO.353
LO.445
LO.5435

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