Translation of the Swedish course syllabus 
 
Financial Economics, 7.5 credits
(Finansiell Ekonomi, 7,5 högskolepoäng)
 
Course code: 1108NE
Subject area: Economics
Main field of study: Economics
Academic school: School of Social Sciences
Disciplinary domain: Social Sciences 100%
Grading scale: AF
Education cycle: First-cycle (Bachelor)
Course level: B (intermediate)
Progressive specialisation: G1F (First cycle. Entry requirements: 0-60 credits from first-cycle courses)
Language of instruction: English
Valid from: HT 2018 (autumn semester)


1. Validation

This course syllabus was validated by the Faculty Board for Humanities, Social Sciences and Technology at Södertörn University on 2018-08-31 according to the stipulations in the Higher Education Ordinance.

2. Entry requirements

30 credits in Economics A and English B or equivalent.

3. Learning outcomes

On completing the course, the student is able to:

  • describe how the financial markets and institutions operate and the importance of financial markets in a market economy;
  • describe the pricing of fundamental financial instruments, such as bonds, shares and derivatives;
  • review various factors that affect the price of financial instruments;
  • describe theories that explain the determining factors for interest rates and forward rates;
  • explain and calculate risk premiums and how a portfolio of instruments can be designed to minimize risk, given the choice of risk exposure;
  • calculate and explain design strategies for using derivative instruments;
  • understand how the financial markets are related to each other and to the economy as a whole;
  • critically evaluate theoretical models that capture relevant information when the risk and pricing of financial instruments is decided.

  • 4. Course content, modules and examinations

    The aim of the course is to introduce students to financial markets and institutions are organised and how trading in financial instruments works. The most important instruments, bonds and shares, are studied in detail with focus on how they are priced in the markets. This requires a theoretical insight into the thinking of individual savers, or investors, when balancing risks and returns. Theoretical portfolio models as CAPM will give insight of the balance between risk and return. Another subsidiary aim is that students is expected to have ability to applicate the theoretical models on real data observations. In this context are index models and the enlargement of those models, called “Multi-index model used and discussed. Those models are used in order to value stock market listed companies, assignment of those models will be given to students. The course ends with an introduction of pricing and basic investments strategies of derivate instruments as option- and forward contracts.


    • Financial Economics, 7,5 credits
      (Finansiell ekonomi, 7.5 högskolepoäng)


    • 1001, Financial Economics, 7,5 credits
      (Finansiell ekonomi, 7.5 högskolepoäng)
      Grades permitted: A/B/C/D/E/F
      Academic discipline: Social Sciences 100%

    5. Course design

    Lectures. Some individual group work may be required in addition to the lectures.

    6. Examination format

    Written exam.
     The grading criteria are distributed prior to the start of a course or module.

    If a student has a certificate for compensatory support from Södertörn University, the examiner may decide on an adapted examination or alternative examination form in accordance with Södertörn University's regulations.

    7. Reading list

    If there are changes in the reading list between semesters, a new list for the next semester is to be validated no later than July 15 and December 15 respectively.
     
    Valid from Valid to Decision date Decision board
    HT 2019VT 20202018-10-03Ämnesråd
    HT 20202020-04-29Ämnesrådet för nationalekonomi vid institutionen för samhällsvetenskaper

    8. Restrictions on accreditation

    The course may not be accredited as part of a degree if the contents are partly or wholly the same as a course previously taken in Sweden or elsewhere.