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	No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT	Man414 International Finance
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 Equilibrium in security markets 2nd Week Arbitrage 3rd Week Valuation 4th Week Risk Neutral Valuation 5th Week Risk 6th Week Risk Aversion 7th Week Portfolio 8th Week Mid-term examination 9th Week Capital Asset Pricing Model 10th Week Factor Models 11th Week Case Study 12th Week Case Study 13th Week Case Study 14th Week Case Study
RECOMENDED OR REQUIRED READING	Leroy, S., Werner, J. (2009); Principles of Financial Economics.
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS	Lecture,Discussion
ASSESSMENT METHODS AND CRITERIA	Quantity Percentage(%) Mid-term 1 30 Project 1 30 Total(%) 60 Contribution of In-term Studies to Overall Grade(%) 60 Contribution of Final Examination to Overall Grade(%) 40 Total(%) 100
ECTS WORKLOAD	Activities Number Hours Workload Midterm exam 1 2 2 Preparation for Quiz 1 5 5 Individual or group work 14 1 14 Preparation for Final exam 1 40 40 Course hours 14 3 42 Preparation for Midterm exam 1 30 30 Laboratory (including preparation) Final exam 1 2 2 Homework 1 30 30 Total Workload 165 Total Workload / 30 5,5 ECTS Credits of the Course 5
LANGUAGE OF INSTRUCTION	Turkish
WORK PLACEMENT(S)	No