Syllabus for Economics B: Finance

Nationalekonomi B: Finansiell ekonomi

A revised version of the syllabus is available.

Syllabus

  • 7.5 credits
  • Course code: 2NE672
  • Education cycle: First cycle
  • Main field(s) of study and in-depth level: Economics G1F

    Explanation of codes

    The code indicates the education cycle and in-depth level of the course in relation to other courses within the same main field of study according to the requirements for general degrees:

    First cycle

    • G1N: has only upper-secondary level entry requirements
    • G1F: has less than 60 credits in first-cycle course/s as entry requirements
    • G1E: contains specially designed degree project for Higher Education Diploma
    • G2F: has at least 60 credits in first-cycle course/s as entry requirements
    • G2E: has at least 60 credits in first-cycle course/s as entry requirements, contains degree project for Bachelor of Arts/Bachelor of Science
    • GXX: in-depth level of the course cannot be classified

    Second cycle

    • A1N: has only first-cycle course/s as entry requirements
    • A1F: has second-cycle course/s as entry requirements
    • A1E: contains degree project for Master of Arts/Master of Science (60 credits)
    • A2E: contains degree project for Master of Arts/Master of Science (120 credits)
    • AXX: in-depth level of the course cannot be classified

  • Grading system: Fail (U), Pass (G), Pass with distinction (VG)
  • Established: 2007-05-31
  • Established by: The Faculty Board of Social Sciences
  • Revised: 2011-09-29
  • Revised by: The Board of the Department of Economics
  • Applies from: Autumn 2011
  • Entry requirements:

    At least 22.5 credits from Economics A.

  • Responsible department: Department of Economics

Learning outcomes

After completing the course, the student is expected to be able to:

- understand and explain the role of the capital market in the allocation of resources

- discuss price formation on financial markets

- analyse how the behaviour of financial agents (households, firms, institutions etc.) affects the capital markets

- identify and describe the institutional conditions on financial markets

Content

In a developed market economy, the capital markets fulfil several important functions. Among the most important of these is the channelling of resources from sectors with a savings surplus to sectors with a deficit. Capital markets also have a central function as concerns the distribution of risk taking between different investors. For the capital markets to be able to fulfil these functions, a well-functioning price formation mechanism is required. The course discusses basic concepts and techniques for analysing financial decisions. The following areas are discussed in the course:

a. Present value calculations and present value models

b. Pricing models for risky financial assets

c. The efficient market hypothesis

d. The money- and bond market

e. The financing choices and capital costs of the firm

f. Derivative instruments – option pricing theory

Instruction

The instruction consists of lectures.

Assessment

The assessment consists of a written exam.

Syllabus Revisions

Reading list

Reading list

Applies from: Spring 2017

Some titles may be available electronically through the University library.

  • Bodie, Zvi.; Kane, Alex.; Marcus, Alan J. Essentials of investments

    9th ed.: New York: McGraw-Hill/Irwin, 2013

    Find in the library

    Mandatory

Reading list revisions

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