Economics: Financial Economics

In the course, you will learn about basic concepts in financial markets. This covers financial market participants and in particular, financial market products. You will learn about theories on optimal portfolio allocations and investment choices. You are introduced to common behavioural biases in investments and you will learn the basics of household debt, i.e. credit card debt and mortgages.

In particular, you will learn about different financial asset classes. After taking the course, you will know what bonds and equities are. We will also cover derivative markets. You will gain an understanding of what forward and future contracts are, as well as what an option is. You will learn how these derivatives work and how to price these products. You will get to know metrics on how to measure riskiness of financial products and understand basic investment theories. Finally, depending on the time, you learn about the global financial crisis of 2008/2009, basics about crypto markets and current financial issues.

Course literature

The course literature listed may be updated up to eight weeks before the course begins.

The course ends with a written exam, composed of multiple choice questions as well as calculation exercises. Moreover, the course offers a take-home assignment in which you practice how to assess stock market data using Excel. In the assignment, you apply concepts that you have learned during the lectures on calculating risk metrics and optimal portfolios.

The teaching consists of lectures and exercise sessions as well as computer lab sessions to work with Excel.  

Prerequisites

General and courses corresponding to the following Swedish Upper Secondary School Programs: English 6, Mathematics 3b/3c and Social Studies 1b/1a1+1a2.