Course Information


Course Information
Course Title Code Semester L+U Hour Credits ECTS
FINANCIAL ECONOMICS IKT4001 7. Semester 3 + 0 3.0 7.0

Prerequisites None

Language of Instruction Turkish
Course Level Bachelor's Degree
Course Type Compulsory
Mode of delivery
Course Coordinator
Instructors Hasan ŞAHİN
Assistants
Goals The main goal of the course is to analyze working structure of the financial market. In addition to that goal, pricing of stocks and bonds is covered in detail. Interest rates, which are very important in financial valuation and their stochastic processes, are also one of the subjects of course
Course Content 1. Financial Economics: Definition and building blocks 2. The time value of Money: its role in the valuation of financial assets 3. Measuring risk and return 4. The term structure of interest rate 5. The valuation of financial assets: Bonds 6. The valuation of financial assets: Stocks/Equities 7. Modern Portfolio Theory 8. The Efficient market Hypothesis (EMH) 9. Bubbles and Financial Economics 10. Behavioral finance, prospect theory and efficient markets 11. Some puzzles in financial economics 12. Derivatives market and financial economics 13. Recent developments in financial economics 14. New financial economics 15. Capital Asset Pricing Model (CAPM) 16. Arbitrage Pricing Model(APT) 17. Option pricing
Learning Outcomes 1) Students learn necessary tools to analyze price formation in financial markets.
2) Students learn necessary skills to analyze financial markets formally.
3) Students will be able read and understand the related literature.

Weekly Topics (Content)
Week Topics Teaching and Learning Methods and Techniques Study Materials
1. Week An overview of Financial Markets Lecture

 Presentation (Including Preparation Time)
2. Week The time value of Money: its role in the valuation of financial assets Lecture

 Presentation (Including Preparation Time)
3. Week Measuring risk and return Lecture

 Presentation (Including Preparation Time)
4. Week The term structure of interest rate Lecture

 Presentation (Including Preparation Time)
5. Week The valuation of financial assets: Bonds Lecture

 Presentation (Including Preparation Time)
6. Week The valuation of financial assets: Stocks/Equities Lecture

 Presentation (Including Preparation Time)
7. Week Modern Portfolio Theory Lecture

 Presentation (Including Preparation Time)
8. Week The Efficient market Hypothesis (EMH) Lecture

 Presentation (Including Preparation Time)
9. Week Capital Asset Pricing Model (CAPM) Lecture

 Presentation (Including Preparation Time)
10. Week Arbitrage Pricing Model(APT) Lecture

 Presentation (Including Preparation Time)
11. Week Derivatives Market and Financial Economics Lecture

 Presentation (Including Preparation Time)
12. Week Option Pricing Lecture

 Presentation (Including Preparation Time)
13. Week Some puzzles in financial economics Lecture

 Presentation (Including Preparation Time)
14. Week Some puzzles in financial economics Lecture

 Presentation (Including Preparation Time)

Sources Used in This Course
Recommended Sources
Essentials of Investments, Zvi Bodie, Alex Kane, Alan J. Marcus, Ninth Edition, McGraw-Hill Irwin, 2011. Quantitative Financial Economics, Stocks, Bonds and Foreign Exchange, Keith Cuthberson, Dirk Nitsche, Second Edition, John Wiley & Sons, 2004.
Foreign Exchange, Keith Cuthberson, Dirk Nitsche, Second Edition, John Wiley & Sons, 2004.

Relations with Education Attainment Program Course Competencies
Program RequirementsContribution LevelDK1DK2DK3
PY15000
PY25000
PY35000
PY45333

*DK = Course's Contrubution.
0 1 2 3 4 5
Level of contribution None Very Low Low Fair High Very High
.

ECTS credits and course workload
Event Quantity Duration (Hour) Total Workload (Hour)
Course Duration (Total weeks*Hours per week) 14 3
Work Hour outside Classroom (Preparation, strengthening) 14 1
Homework 14 5
Midterm Exam 1 1
Time to prepare for Midterm Exam 2 15
Final Exam 1 1
Time to prepare for Final Exam 2 20
Total Workload
Total Workload / 30 (s)
ECTS Credit of the Course
Quick Access Hızlı Erişim Genişlet
Course Information
  • Course Information
  • Weekly Topics (Content)
  • Sources Used in This Course
  • Relations with Education Attainment Program Course Competencies
  • ECTS credits and course workload