Financial Economics

The course is included in the second semester of the Bachelor's Programme in Business and Economics. It is not offered as a freestanding course. The course is open to incoming exchange students.

Department of 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, origins of financial crises, typical incentive problems in connection with client advice (Code of Conduct) and Socially Responsible Investment are discussed.

On successful completion of the course, the student shall be able to:

1. estimate the value of equities and bonds given a target yield,
2. demonstrate basic knowledge of how a target yield can be determined,
3. give an account for the function of the financial markets and the financial institutions in the market economy with a special focus on the role that banks, and insurance companies plays as an intermediary regarding redistribution of risk,
4. give an account for knowledge of the responsibility of a financial adviser in relation to customers and employers in terms of: transparency, objectivity/conflict of interest, possible conflicts in a counselling situation.

Lectures, a computer-based aid for self-study, and question times. Attendance at the course introduction is compulsory.

Language of instruction: English

The intended learning outcomes are examined through an individual written exam. There are two non-compulsory quizzes during the course that give the students the opportunity to prepare for the written exam. From these quizzes it is possible to earn points. Students can only participate in the non-compulsory quizzes, and earn points, during the course session.

If a student who has been failed twice for the same examination element wishes to change examiner before the next examination session, such a request is to be granted unless there are specific reasons to the contrary (Chapter 6 Section 22 HF).

If a student has received a certificate of disability study support from the University of Gothenburg with a recommendation of adapted examination and/or adapted forms of assessment, an examiner may decide, if this is consistent with the course’s intended learning outcomes and provided that no unreasonable resources would be needed, to grant the student adapted examination and/or adapted forms of assessment.

If a course has been discontinued or undergone major changes, the student must be offered at least two examination sessions in addition to ordinary examination sessions. These sessions are to be spread over a period of at least one year but no more than two years after the course has been discontinued/changed.

If a student has been notified that they fulfil the requirements for being a student at Riksidrottsuniversitetet (RIU student), to combine elite sports activities with studies, the examiner is entitled to decide on adaptation of examinations if this is done in accordance with the Local Rules Regarding RIU Students at the University of Gothenburg.

The grading scale comprises: Excellent (A), Very good (B), Good (C), Satisfactory (D), Sufficient (E) and Fail (F).

To obtain a passing grade, students must receive a passing grade on the individual written exam. To determine the final grade, points from the non-compulsory quizzes are combined with the points received from the written exam. Any points earned from the non-compulsory quizzes are only valid during the course (initial exam and two re-exams).

After completion of the course, a course evaluation will be carried out in accordance with the procedures established for the Bachelor's Programme in Business and Economics. The results of the evaluation, together with any resulting changes to the course, will be communicated to the students who participated in the evaluation as well as to those enrolled in the subsequent offering of the course.