In this course the theoretical and empirical issues of the financial economics are studied. Among these, the functioning of the financial markets, the determinants of the interest rates, the volatility and the uncertainty of the financial markets and assets. The mean -variance model and the CAPM are studied in the first part of the course. We will use Excel and some other software such as Gretl or Stata to measure and estimate the security market line and the variability of the expected rates. Then, the Expected utility theory and its applications are studied in the second part of the course.

Part 1.
Money market, bond market, equity and exchange rate markets(notes)
Mean-variance criterion The CAPM model (Saltari, Ch. 5)
Absence of arbitrage and asset valuation (Saltari, Ch. 7)
Portfolio theory (applications in xls): asset pricing models, arbitrage, optimal portfolio 
Part 2.
The theory of expected utility (Saltari, Ch. 1)
Risk and risk aversion (Saltari, Ch. 2)
Securities market and portfolio choice (Ch. 4)

- Knowledge and understanding: by the end of the course, students must have acquired the knowledge and ability to understand the specificities of the relationships that take place in financial markets and of the actors that operate in them: savers, intermediary investors, and asset managers. In particular, they must know and be able to understand the specificities and problems of asset pricing. The teaching methods by which these results will be achieved will consist of: lectures, testimonials, analysis and discussion of financial data, teamwork and in-depth seminars.

- Applying knowledge and understanding: students must be able to apply the acquired knowledge in an appropriate and flexible manner to analyse, understand and solve situations and problems related to portfolio management.

- Making judgement: students must have the ability to link the knowledge acquired during the course into integrated and unitary schemes and to deal with complex problems autonomously and with their own judgement.

 - Communication skills: Students are expected to acquire clear and effective communication skills, thanks to a good command of the vocabulary related to the topics covered during the course. The teaching methods with which these results will be achieved will consist of: lectures, analysis and discussion of national and international financial scenarios, teamwork and in-depth seminars, and production of papers.

- Learning skills: Students must have developed good learning skills, enabling them to deepen the knowledge acquired during the course by tackling subsequent study paths on the topics of applied and monetary economics, and to acquire new knowledge, skills and abilities through professional and work experience.

The teaching material prepared by the lecturer in addition to recommended textbooks (such as for instance slides, lecture notes, exercises, bibliography) and communications from the lecturer specific to the course can be found inside the Moodle platform › blended.uniurb.it

Exercises with analytical and theoretical applications on financial theory

Teaching

The lecture is conducted with constant reference to the course manual and notes. In-depth notes as PPT files and PDF files available on the subject site are an integral part of the course.

Attendance

Constant classroom attendance is recommended, both during lecture and exercise hours.

Course books

- E. Saltari, Appunti di Economia Finanziaria, ed. Esculapio, 2011

- Handouts and notes distributed by the lecturer and available on the subject website

Handouts and other teaching materials made available on the Moodle platform ' blended.uniurb.it.
 

Assessment

Written and subsequent oral examination. The examination is held on the same day. The written examination consists of four theoretical questions and two exercises. The time available to complete the test is h. 01.10. After the written test has been corrected, any oral and recorded examinations take place.

The evaluation criteria are: the level of mastery of the theoretical knowledge, graphic, mathematical and analytical tools used; the degree of articulation of the answer; the degree of adequacy of the explanation; the degree of accuracy of the graphic and analytical analysis.

Disability and Specific Learning Disorders (SLD)

Students who have registered their disability certification or SLD certification with the Inclusion and Right to Study Office can request to use conceptual maps (for keywords) during exams.

To this end, it is necessary to send the maps, two weeks before the exam date, to the course instructor, who will verify their compliance with the university guidelines and may request modifications.

Teaching

Same program of the attending students.

Attendance

Same program of the attending students.

Course books

Same program of the attending students.

Assessment

Same modalities of the attending students.

Disability and Specific Learning Disorders (SLD)

Students who have registered their disability certification or SLD certification with the Inclusion and Right to Study Office can request to use conceptual maps (for keywords) during exams.

To this end, it is necessary to send the maps, two weeks before the exam date, to the course instructor, who will verify their compliance with the university guidelines and may request modifications.

Erasmus students can request to sit the final exam in English with an alternative bibliography to be defined with the professor.