TYPE OF COURSE UNIT	Elective Course
LEVEL OF COURSE UNIT	Bachelor's Degree
YEAR OF STUDY	-
SEMESTER	-
NUMBER OF ECTS CREDITS ALLOCATED	5
NAME OF LECTURER(S)	Associate Professor İhsan Erdem Kayral Instructor Özlem Aytaç
LEARNING OUTCOMES OF THE COURSE UNIT	At the end of this course, the students; 1) Read, understand and reflect on the international professional and academic literature on financial economics 2) Report independently on various issues in financial economics, including state of the art empirical and theoretical studies 3) Use and apply statistical tools and methods that are relevant to financial economics
MODE OF DELIVERY	Face to face
PRE-REQUISITES OF THE COURSE	Yes(BUS311)
RECOMMENDED OPTIONAL PROGRAMME COMPONENT	No
COURSE DEFINITION	The objective of this course is to undertake a rigorous study of the theoretical foundations of modern financial economics. The course will cover the central themes of modern finance including individual investment decisions under uncertainty, stochastic dominance, mean-variance theory, capital market equilibrium and asset valuation, arbitrage pricing theory, option pricing and the potential application of these themes. Upon completion of this course, students should acquire a clear understanding of the major theoretical results concerning individuals' consumption and portfolio decisions under uncertainty and their implications for the valuations of securities.
COURSE CONTENTS	WEEK TOPICS 1st Week Introduction to Financial Markets 2nd Week Basic Financial Statements 3rd Week Ratio Analysis 4th Week Time Value of Money and Bond Pricing 5th Week Financial Decision Making 6th Week Return and Risk, Systematic and Specific Risk 7th Week Value of a Portfolio 8th Week Mid-term Exam 9th Week Capital Asset Pricing Model (CAPM) 10th Week Exchange Rates 11th Week Interest rates and FX Markets 12th Week Derivatives 13th Week Efficient Market Hypothesis 14th Week Market Anomalies
RECOMENDED OR REQUIRED READING	Cuthbertson, K., Quantitative Financial Economics Stocks, Bonds and Foreign Exchange, John Wiley and Sons,1999. Jones, C., Financial Economics, Routledge, 2008. Madura, J., International Financial Management, Cengage Learning, 2020. McLaney, E., Business Finance Theory and Practice, Pearson, 2017. Miskhin, F.S. and Eakings, S.G., Financial Markets and Institutions, 2018. Stephen F. LeRoy and Jan Werner, Principles of Financial Economics, Cambridge University Press, 2000.
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS	Questions/Answers,Discussion,Lecture,Problem Solving,Applications, Group Presentations
ASSESSMENT METHODS AND CRITERIA	Quantity Percentage(%) Mid-term 1 20 Assignment 1 30 Total(%) 50 Contribution of In-term Studies to Overall Grade(%) 50 Contribution of Final Examination to Overall Grade(%) 50 Total(%) 100
ECTS WORKLOAD	Activities Number Hours Workload Midterm exam 1 2 2 Preparation for Quiz Individual or group work 14 1 14 Preparation for Final exam 1 60 60 Course hours 14 3 42 Preparation for Midterm exam 1 40 40 Laboratory (including preparation) Final exam 1 2 2 Homework Total Workload 160 Total Workload / 30 5,33 ECTS Credits of the Course 5
LANGUAGE OF INSTRUCTION	English
WORK PLACEMENT(S)	No