ECON331-11S2 (C) Semester Two 2011

Financial Economics

15 points

Details:
Start Date: Monday, 11 July 2011
End Date: Sunday, 13 November 2011
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Friday, 22 July 2011
  • Without academic penalty (including no fee refund): Friday, 7 October 2011

Description

The economics of finance with applications to asset valuation, corporate finance, and portfolio management.

This course is a rigorous introduction to financial economics.  As such, it makes extensive use of economics, finance, mathematics and statistics.  Requirements include familiarity with multivariate calculus, algebra (including matrix algebra), and probability theory, including applications of these concepts to microeconomics and/or finance.  

The focus is primarily on topics in portfolio theory, asset pricing and corporate finance.  Specific areas of coverage include:

1.  The efficient markets hypothesis.
2.  The expected utility model.
3.  The mean-variance model.
4.  The capital asset pricing model.
5.  Arbitrage pricing models.

Prerequisites

ECON230 or any two of (ECON202, ECON203, FINC201 or FINC205). RP: MATH103

Restrictions

Equivalent Courses

Recommended Preparation

Course Coordinator

Glenn Boyle

Assessment

Assessment Due Date Percentage 
Written Assignment 20%
Final Exam 50%
Test 1 28 Jul 2011 10%
Test 2 29 Sep 2011 20%

Textbooks / Resources

A detailed set of class notes can be downloaded from the FINC 331 folder on K Drive.  You will also need access to Financial Theory and Corporate Policy by T. Copeland, J. Weston and K Shastri (on reserve at the Library).  Additional required readings (primarily journal articles) are downloadable from the K Drive folder or from the Library online journal holdings.

Indicative Fees

Domestic fee $630.00

International fee $2,775.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All ECON331 Occurrences

  • ECON331-11S2 (C) Semester Two 2011