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ES50074: Financial economics

Follow this link for further information on academic years Academic Year: 2014/5
Further information on owning departmentsOwning Department/School: Department of Economics
Further information on credits Credits: 6
Further information on unit levels Level: Masters UG & PG (FHEQ level 7)
Further information on teaching periods Period: Semester 1
Further information on unit assessment Assessment Summary: CW 30%, EX 70%
Further information on unit assessment Assessment Detail:
  • EXAM (EX 70%)
Further information on supplementary assessment Supplementary Assessment: ES50074A - RESIT EXAM (where allowed by programme regulations)
Further information on requisites Requisites:
Further information on descriptions Description: Aims:
To equip students with the capacity to critically evaluate the fundamental concepts in modern financial economics.
To develop a range of appropriate quantitative skills, such as dynamic methods and optimising asset pricing models.
To enable students to develop the ability to apply analytical and statistical techniques to market data and critically evaluate the results.

Learning Outcomes:
On successful completion of the unit students will have acquired comprehensive understanding of the roles of the capital markets, pricing assets in speculative markets, the importance of market imperfections, excessive volatility. The students are expected to demonstrate subject-specific technical skills in asset valuation under different market environments and ability to conduct simple empirical investigations.


* Use of optimization techniques in the context of financial economics. (F/T)
* Understanding the concept of risk and the attitude of economic agents towards it. (F/T)
* Use of IT for data collection, use of the appropriate software to conduct small scale empirical research (F/T).

This unit provides knowledge of financial markets in a macro- and microeconomic context. Students learn the relevant processes of financial markets in underlying and derivative markets with regard to price and expectations formation. They gain an analytical insight into the effect macroeconomic variables have on the financial markets. The unit aims to closely combine theoretical knowledge with empirical evidence.
Further information on programme availabilityProgramme availability:

ES50074 is Compulsory on the following programmes:

Department of Economics
* This unit catalogue is applicable for the 2014/15 academic year only. Students continuing their studies into 2015/16 and beyond should not assume that this unit will be available in future years in the format displayed here for 2014/15.
* Programmes and units are subject to change at any time, in accordance with normal University procedures.
* Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.