This is an introductory course on financial markets, on the market participants’ and on the established products. Students should understand and be able to apply basic finance theory.
List of topics covered:Fisher model; theory on the term structure of interest rates (spot rates, forward rates); bond pricing, duration, convexity; normative portfolio theory (Markowitz, Tobin); Index model (Sharpe model); capital asset pricing model (CAPM); arbitrage pricing theory (APT); financial markets and information processing, market participants as banks, insurance companies and pension plans, mutual funds and hedge funds, introduction to financial derivatives (forwards, swaps, option).
- Instructor: Alex Weissensteiner