COURSE UNIT TITLE

: FINANCIAL ECONOMICS II

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
EFE 7006 FINANCIAL ECONOMICS II COMPULSORY 3 0 0 7

Offered By

Master`s Degree in Financial Economics (Non-Thesis-Evening)

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR DOCTOR SAADET KASMAN

Offered to

Master`s Degree in Financial Economics (Non-Thesis-Evening)

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 do research and present the outcome of his/her research.

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

Planned Learning Activities and Teaching Methods

1. Lectures
2. Class Discussions
3. Assignments

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 * 0.40 + STT * 0.20 + FIN * 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.40 + STT * 0.20 + 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 demonstrate the ability of doing research and present the outcome of his/her research.

Language of Instruction

English

Course Policies and Rules

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

Contact Details for the Lecturer(s)

To be announced.

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 12 3 36
Tutorials 12 1 12
Preparations before/after weekly lectures 12 1 12
Preparation for midterm exam 1 30 30
Preparation for final exam 1 40 40
Preparing assignments 1 30 30
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 164

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10
LO.155
LO.245
LO.355
LO.4545

CONTACT INFORMATION
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Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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