Simon Fraser University
Engaging the World

Course Outlines

Fall 2019 - ECON 483 D100

Selected Topics in Economics (3)

Financial Economics

Class Number: 3031

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 3 – Dec 2, 2019: Mon, 9:30 a.m.–12:20 p.m.
    Burnaby

  • Exam Times + Location:

    Dec 4, 2019
    Wed, 3:30–6:30 p.m.
    Burnaby

  • Prerequisites:

    To be determined by the instructor subject to approval by the department chair.

Description

CALENDAR DESCRIPTION:

The subject matter will vary from term to term depending upon the interests of faculty and students.

COURSE DETAILS:

Selected Topics: Financial Economics

Prerequisites: ECON 302 and ECON (or BUEC) 333.


This course is an introduction to finance theories that try to explain resources allocation across time and to understand the risks involved in investment decisions.  Understanding of intermediate microeconomics (ECON 201 and 302) and statistics (ECON or BUEC 333) are assumed.

Topics:
1. Rate of returns and basic statistics review
2. Fixed income securities and the term structure of interest rates
3. Reference rates
4. Risk management: Value-at-risk, Expected shortfall, and Stress test
5. Expected utility, risk aversion, and risk premium
6. The portfolio theory
7. The Capital Asset Pricing Model
8. Efficient market hypothesis
9. Arbitrage Pricing Theory and the factor models (if time permits)

Grading

  • Midterm exam 25%
  • Final exam 25%
  • Paper 30%
  • Assignments 10%
  • Reading summaries 10%

Materials

REQUIRED READING:

Bodie, Kane, Marcus, Perrakis, and Ryan, Investments, 9th Canadian edition, McGraw Hill, 2019.

Malkiel, Burton, A Random Walk Down Wall Street, 11th edition, Norton, 2015.

RECOMMENDED READING:

Danthine J. and Donaldson J., Intermediate Financial Theory, 3rd edition, Academic Press, 2014.

Department Undergraduate Notes:

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or caladmin@sfu.ca.

Registrar Notes:

SFU’s Academic Integrity web site http://www.sfu.ca/students/academicintegrity.html is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating.  Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the University community.  Academic dishonesty, in whatever form, is ultimately destructive of the values of the University. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the University. http://www.sfu.ca/policies/gazette/student/s10-01.html

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS