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 6032 ISSUES IN FINANCIAL ECONOMICS ELECTIVE 3 0 0 9

Offered By

Economics (English)

Level of Course Unit

Third Cycle Programmes (Doctorate Degree)

Course Coordinator

PROFESSOR DOCTOR 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 finace 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, Banking sector, Insurance companies, Mutual funds and Pensions funds.
2   To be able to demonstrate investment decisions of investors using tools from economic analysis.
3   To establish an ability to relate financil 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 1. The Investment Environment 11. Banking Industry and Insurance Industry
2 2. Asset Classes and Fiancial Instruments 12. Mutual Funds and Pension Funds
3 3. How Securities are Traded 13. Reasons for Financial Crisis
4 4. Learning about Return and Risk from Historical Record 14. Review
5 5. Risk Aversion and Capital Allocation to Risky Asset
6 6. Capital Asset Pricing Model
7 7.Class Discussion
8 8. Arbitrage Picing Theory and Multifactor Models of Risk and Return
9 9. Stock Market and Bond Market
10 10. Derivative Market and Mortgage Market

Recomended or Required Reading

1. Bodie, Kane and Markus, Investments (2008), 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


Further Notes About Assessment Methods

None

Assessment Criteria

1. The midterm and final exams will be based on questions which evaluate understanding and synthesis of topics explained and discussed in the course.

a. The learner will clearly define basic concepts in financial economics such CAPM, APT, Efficient market hypothesis.
b. The learner will demonstrate understanding of different financial institutions and instruments.
c. The learner will show the outcomes of different economic policies on financial institutions.
d. The learner evaluate the investment decisions of investors who have different risk tolarance.
e. The learner will explanin the reasons of financial crisis.
f. The learner will show understanding of an academic paper in the related literature.
g. The learner will write an academic paper.

2. Assignment will be based on research report of chosen topic. Research reports will be assessed on
Summary paragraph, Introduction, Information gathering, Grammer and spelling.

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 13 1 13
Preparation for midterm exam 1 35 35
Preparation for final exam 1 40 40
Preparing presentations 0 0 0
Preparing assignments 2 40 80
Midterm 1 3 3
Final 1 3 3
TOTAL WORKLOAD (hours) 216

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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