Financial Markets and Instruments

Financial Markets and Instruments

 

Instructor:

Elena Fedorova, Ph.D, Post Doctoral Researcher, LUT School of Business and Management, Finland (Visiting Professor)

Workload:

4,0 ECTS

45 contact hours 

Prerequisites:

None  

Goals and objectives:

The objective of the course is to provide students with knowledge of the foundations of financial markets and various financial instruments. The course covers the topics such as making investment decisions under uncertainty, portfolio theory, market efficiency, capital market equilibrium and asset valuation, Arbitrage Pricing Theory, and derivative securities.

Course Content:

1. Choice Theory under Uncertainty
2. Measuring Risk and Risk Aversion
3. The Concept of Stochastic Dominance
4. Risk Aversion and Investment Decisions
5. Markets for Corporate Securities
6. Portfolio Theory
7. Financial market efficiency
8. The Capital Asset Pricing Model
9. Multifactor Asset Pricing Models
10. The Arbitrage Pricing Theory
11. The Consumption Capital Asset Pricing Model

12. Markets for Derivative Securities 

Teaching Methods:

Lectures, in-class and home assignments

Course Reading:

Fabozzi, F.J., Modigliani, F., and F.J. Jones (2010), Foundations of Financial Markets and Institutions, 4th ed., Pearson, Prentice Hall.
Danthine, J.-P., and J.B. Donaldson (2005), Intermediate Financial Theory, 2nd ed., Amsterdam; Boston, Mass.: Elsevier.
Hull, J.C. (2009), Options, Futures, and Other Derivatives, 7th ed., Upper Saddle
River, N.J.: Pearson, Prentice Hall. 
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