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EC988: The Economics of Financial Markets

  • Pablo Beker

    Module Leader
18 CATS - Department of Economics
Spring Module

Principal Aims

EC988-18 The Economics of Financial Markets

Principal Learning Outcomes

"Subject Knowledge and Understanding: Demonstrate awareness and understanding of key concepts and an understanding of the standard models (CAPM, CCAPM, ICAPM, APT, etc). The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study The summative assessment methods that measure the achievement of this learning outcome are: Examination "

"Subject Knowledge and Understanding: Demonstrate an understanding of how researchers have tested these models and be able to challenge theories based on the empirical evidence. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study The summative assessment methods that measure the achievement of this learning outcome are: Examination"

"Subject Knowledge and Understanding: Gain a familiarity with the way financial markets operate. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study The summative assessment methods that measure the achievement of this learning outcome are: Examination"

"Cognitive skills display analytical skills in understanding and manipulating complex ideas and problem-solving skills in applying models to real world problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, independent study The summative assessment methods that measure the achievement of this learning outcome are: Examination"

Syllabus

The module will typically cover the following topics:Empirical Regularities; The Basic Pricing Equation; Basic Models with Symmetric Information; Puzzles; Advanced Models with Symmetric Information; Arbitrage Pricing Theory; Models with asymmetric information.

Context

Optional Module
L1P6 - Year 1, L1P7 - Year 1
Pre or Co-requisites
Prior knowledge of Microeconomics at the MSc level, in particular a very good understanding of decision making under uncertainty and general equilibrium. In addition, the student should be familiar with constrained optimisation and basic notion of statistics.

Assessment

Assessment Method
2 hour examination (May) (100%)
Coursework Details
2 hour examination (May) (100%)
Exam Timing
May

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully- and read through the entire paper at least once before you start entering your answers.

There are THREE questions in this paper. You must answer TWO questions (50 marks each).

Approved pocket calculators are allowed.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

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