Course Outline

  • Introduction: A review of financial markets
  • Market Efficiency and Predictability in Financial Markets: efficient markets theory, technical analysis, fundamental analysis
  • Asset Pricing Theories: CAPM, APT
  • The interaction between the real economy and the financial markets: macroeconomic activity and financial markets; monetary policy and financial markets; banking sector and the financial markets.
  • Market micro-structure
  • Bond markets, FX markets, commodity markets
  • Behavioral Finance
  • Volatility and Risk
  • Selected Empirical Research Topics: co-movement of financial markets, contagion,
    Soros’ theory of reflexivity

Reference Books

    1. C.F. Huang and R. Litzenberger. Foundations for Financial Economics. Prentice Hall.
    2. Bodie, Z., A. Kane, and A.J. Marcus (2007). Investments, McGraw-Hill.
    3. Grinblatt, M., and S. Titman, Financial Markets and Corporate Strategy. McGraw-Hill.
    4. E.J. Elton and M.J. Gruber, Modern portfolio theory and investment analysis, Wiley.