HONG KONG BAPTIST UNIVERSITY

COURSE OUTLINE

1. COURSE TITLE

Financial Economics

2. COURSE CODE

ECON7250

3. NO. OF UNITS

3 Units

4. OFFERING DEPARTMENT

Master of Science in Applied Economics

5. PREREQUISITES

Nil

6. MEDIUM OF INSTRUCTION

English

7. AIMS & OBJECTIVES

This course provides an introduction to financial economics. The topics include an

introduction of capital markets, consumption and investment, capital budgeting, the
theory of choice, valuation of securities, portfolio analysis, bond analysis, options and
futures markets, international financial management, and efficient capital markets. It will
also provide students with knowledge and skills in applications of modern finance theory
to risk management and other issues in economics and financial markets. Applications of
the theory are emphasized throughout the course.

8. COURSE CONTENT

I. Introduction: Capital Markets, Consumption, and Investment

II. Investment Decisions and Capital Budgeting
III. The Theory of Choice
IV. Mean Variance Portfolio Theory
V. Market Equilibrium and Asset Pricing Theory
VI. Bond Prices and the Term Structure of Interest Rates
VII. Option Pricing Theory and Evidence
 VIII.Futures Contracts and Market

9. COURSE INTENDED LEARNING OUTCOMES (CILOs)

CILO By the end of the course, students should be able to:

CILO 1 Understand the theory for capital markets, consumption, and investment.
CILO 2 Apply the theory to conduct capital budgeting.
CILO 3 Evaluate values of securities, and conduct portfolio analysis.
CILO 4 Amalyse options and futures markets.
CILO 5 Apply the theory of international financial management, efficient capital
markets, and modern finance theory to risk management and other issues in
financial markets.

10. TEACHING & LEARNING ACTIVITIES (TLAs)

CILO Type of TLA

alignment
1~5 Lecture, Student Presentation, Project, Exercises and Problems

11. ASSESSMENT METHODS (AMs)

Type of Weighting CILOs to be Description of Assessment Tasks

Assessment addressed
Methods
Class 10 % 1~5 Student Presentation
Participation
/ Discussion
Assignments 40 % 1~5 Student Presentation, Individual Project/ Paper,
Group Project/ Paper, Exercises & Problems
Tests 20 % 1~3 Written Examination
Final Project 30 % 1~5 Case Study, Individual Project/ Paper

Last Update: 2022-04-27

Published Date: 2023-07-11

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