Financial Engineering

Financial Economics

Release Date: 2017-09-22

1. Basic Course Information

Course Code: 055083
Course Name: Financial Economics
Course Type: Specialty Course
Periods: 48
Credits: 3
Target Students: Undergraduates Majoring in Financial Engineering
Assessment: Examination
Preparatory Course: Microeconomics, Monetary Banking, International finance

2. Course Introduction

This compulsory course is a part to applied microeconomics, with specific emphasis put on asset pricing and the valuation of risky cash flows. After developing the details of consumer decision-making under uncertainty, it uses that general framework as a tool for studying both equilibrium and no-arbitrage theories of securities pricing, including the capital asset pricing, Arrow-Debreu theories, martingale pricing methods and the arbitrage pricing theory. This course is applied microeconomics which mainly provides a microeconomic basis for finance focusing on intertemporal consumption-saving decision-making and asset pricing. Through studying of this course, students will comprehensively grasp the relationships between microeconomics and finance, raising their competences in microeconomics and math economics.