Risk and Financial Economics

Recommended Prerequisites

Economics of Money and Finance and Statistics

Teaching Methods

Theoretical-practical lectures based on expositive and interactive methods and through the use of audiovisual techniques. In these lectures students also carry out individual practical works and group discussion of problems in a real world framework. The theoretical-practical lectures are complemented with office hours for individual attendance

Learning Outcomes

The aims are that students acquire competencies in the following subjects: 1. The organization and functioning of financial markets. 2. The economic theory of choice. 3. The mean variance portfolio theory. 4. Models of equilibrium in the capital markets. 5. Efficient markets. 6. Interest rate theory and the pricing of bonds. 7. Interest rate risk and the management of bond portfolios. 8. Financial futures 9. Negotiable financial options.

Work Placement(s)

No

Syllabus

1. The organization and functioning of financial markets. 2. The economic theory of choice. 3. The mean variance portfolio theory. 4. Models of equilibrium in the capital markets. 5. Efficient markets. 6. Interest rate theory and the pricing of bonds. 7. Interest rate risk and the management of bond portfolios. 8. Financial futures 9. Negotiable financial options

Head Lecturer(s)

Nuno Miguel Barateiro Gonçalves Silva

Assessment Methods

Assessment
1 Intermediate test 50% and Final Exam: 50%; or Final Exam 100%: 100.0%

Bibliography

J. A. Soares da Fonseca, Economia monetária e financeira, Imprensa da Universidade de Coimbra, Coimbra, 2010.

J. A. Soares da Fonseca, Obrigações : métodos de avaliação e de gestão do risco de taxa de juro,  Associação da Bolsa de Derivados do Porto, Porto, 1999.

C. Jones, Financial economics, Routledge, London, 2008.

E. J. Elton (et al.), Modern portfolio theory and investment analysis, 8th ed., John Wiley & Sons, Hoboken, 2011.