Financial Economics
Instructor: Жељана Јовичић, PhD, Associate Professor
Acquiring knowledge and skills in making optimal investment decisions using the principles of economic theory, primarily macroeconomics, in risk conditions. In doing so, students will focus on the essential understanding of the most important elements of modern finance theory.
| Code : | 2И14АФЕК |
|---|---|
| Status: | E |
| Semestar: | 9th or 10th |
| Number of classes per week: | 2+2 |
| ЕECTS: | 5 |
| Teachers: |
Жељана Јовичић,
PhD Associate Professor |
| Prerequisites: | |
| Learning Outcomes (gained knowledge): | The subject content is directed toward the realization Harry Markowitz's achievements about the problem of optimal choice of financial portfolios, theory of balance of financial markets and other theories. |
| Subject Contents: | Axioms of rational choice and utility function and balance of perfect competition; Pareto (social) optimum; The balance of the financial market without risk; Application of the concept of the time value of money; Arrow-Debreu securities and the balance in the model of static financial markets at risk; The balance on the financial market of complex securities; Expected utility function; Measures of risk aversion; The optimal choice of the portfolio; Markowitz analysis; Basic concepts of equilibrium theory CAPM; Calculation of CAPM; Application of CAPM. |
| Teaching Methods and Learning Activities: | Lectures and exercises, as well as case studies. |
| Literature: | Urošević, B. (2008). Financial Economics. Belgrade: Faculty of Economics. |
| Types of Assessment for the subject: | Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points) |
| Special Remarks for the subject: |