Modiwl ASB-3143:
Financial Economics
Financial Economics 2024-25
ASB-3143
2024-25
Bangor Business School
Module - Semester 1
20 credits
Module Organiser:
Rhys Ap Gwilym
Overview
The content includes Expected Utility Theory (EUT), risk aversion, Mean-variance model, critiques and alternative models to EUT, insurance decisions, value of information, adverse selection, moral hazard, principal-agent problem, applications in finance and banking theory.
Assessment Strategy
-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. -good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills. -excellent -A- to A+ (70%+): Outstanding Performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills. -another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
Learning Outcomes
- Analyse and critique various theories in finance and banking.
- Analyse the workings of insurance markets.
- Assess the value of information to economic agents and analyse the impact of assymetric information on economic outcomes.
- Calculate and critique measures of risk aversion.
- Critically analyse the issues of time-inconsistency in modelling financial decision-making.
- Explain the underlying assumptions of Expected Utility Theory and how they can be used to derive prescriptions for how people might or should behave under uncertainty.
Assessment method
Report
Assessment type
Summative
Description
1500 word assessment of the characteristics of a particular financial instrument.
Weighting
35%
Due date
05/12/2024
Assessment method
Class Test
Assessment type
Summative
Description
45 minute mid-term online test, focusing on the foundational aspects of the module syllabus.
Weighting
15%
Due date
11/11/2024
Assessment method
Exam (Centrally Scheduled)
Assessment type
Summative
Description
2 hour end-of-semester exam, covering the full breadth of the module syllabus.
Weighting
50%