Financial Economics

The course intends to give basic knowledge of the financial markets and the financial institutions in a market economy. Special focus is devoted to the role of financial institutions (banks, insurance companies, mutual funds and investment banks) as intermediaries of capital and risk, as well as a description of markets and instruments, especially the markets for requirements and shares.

The course also contains a theoretical part concerning the basics of valuation of bonds and shares and how to theoretically determine return on equity through CAPM (Capital Asset Pricing Model). Furthermore, origin of financial crises, typical incentive problems in connection with client advice (Code of Conduct) and Socially Responsible Investment are discussed.