Financial Economics

Course Description

Financial Economics explores the interaction between financial markets, economic theory, and policy in a global context. This course examines how individuals, firms, and institutions make financial decisions under uncertainty, how markets allocate capital, and how macroeconomic forces influence asset prices and investment. It integrates core economic principles with finance theory, focusing on valuation, risk management, portfolio optimisation, and the role of financial institutions in economic stability and growth. Learners will develop both analytical and practical skills necessary to understand modern financial systems and to make informed economic and financial decisions in an increasingly interconnected world.

List of Chapters

1. Foundations of Financial Economics
2. Asset Pricing and Market Efficiency
3. Portfolio Theory and Investment Decisions
4. Corporate Finance and Capital Structure
5. Financial Markets, Institutions, and Instruments
6. Risk Management and Derivatives
7. Monetary Policy, Interest Rates, and Financial Stability
8. Global Financial Integration and Crises

Learning Outcomes

• Demonstrate an integrated understanding of financial economic theory and practice in a global context.
• Apply quantitative techniques to analyse market behaviour and asset valuation.
• Critically assess the influence of policy, regulation, and macroeconomic conditions on financial systems.
• Develop strategies for risk assessment, investment management, and financial decision-making.
• Communicate financial and economic analyses effectively using professional and ethical standards.