Financial Economics and Risk 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. Principles of Financial Decision. 2. The mean variance portfolio theory.  3. Models of equilibrium in the capital markets. 4. Efficient markets.5. Interest rate theory and the pricing of bonds. 6. Interest rate risk and the management of bond portfolios. 7. Financial futures 8. Negotiable financial options.

Work Placement(s)

No

Syllabus

1. Principles of financial decision

2. The mean variance portfolio theory

3. Models of equilibrium in the capital markets

4. Efficient markets

5. Interest rate theory and the pricing of bonds

6. Interest rate risk and the management of bond portfolios

7. Financial futures

8. Negotiable financial options.

Head Lecturer(s)

José Alberto Soares da Fonseca

Assessment Methods

Assessment
Exam: 50.0%
intermediate test: 50.0%

Bibliography

FONSECA, José Alberto Soares da - Economia monetária e financeira. Coimbra : Imprensa da Universidade de Coimbra, 2010. [BP 336.07 FON]

FONSECA, José Alberto Soares da — Obrigações : métodos de avaliação e de gestão do risco de taxa de juro. Porto : Associação da Bolsa de Derivados do Porto, 1999. [BP 336.76 FON]

JONES, Chris - Financial economics. London : Routledge, 2008. [BP 336.07 JON]

MODERN portfolio theory and investment analysis. Edwin J. Elton [et al.]. 8th  ed. Hoboken : John Wiley & Sons, 2011. [BP 336.76 MOD]