31516 - Financial Economics

Learning outcomes

The purpose of this course is to give a practical understanding of financial risks and of contracts and methods for managing these risks under normal as well as stressful market conditions, such as those that we have experienced in recent years. Students will be able to manage market risk, credit risk and sovereign risk with a number of quantitative techniques. Research seminars are also included, dealing with new issues in financial markets, i.e. how financial innovation, the increasingly “systemic” nature of risk, and regulatory changes have made risk management more challenging. A few empirical puzzles and policy issues will be addressed. A special session will be devoted to applications in the tourism industry.

Course contents

The main topic concerns the functioning of international financial markets. We study financial risks and contracts and some methods for managing these risks. In particular, we focus on market risk, credit risk and sovereign risk in capital markets. Seminars are also included, dealing with new issues in financial markets, i.e. how financial innovation and the increasingly “systemic” nature of risk have made risk management more challenging. A special session will be devoted to exchange rate risks and tourism

Readings/Bibliography

Specialized articles and a reading list will be provided during the course. The reading list will be available in the "Materiale Didattico" website before each lecture

Teaching methods

Lectures and classes. Assessment during onsite lectures. One flipped classroom

Assessment methods

The assessment method is based on the evaluation of a written test for the individual preparation. Students are expected to answer up to ten questions, including multiple-choice, true-false, or short answers. A mock exam as a sample will be provided before end of lectures. Students are expected to know the basic quantitative methods discussed during lectures and to critically discern the limitations of the methods employed in the analysis. Assessment during onsite lectures (consisting of project & a flipped classroom) is also considered.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous and the other assessment activities above were positive.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

Additional information on the assessment method will be discussed during the first lectur

Teaching tools

Lectures and lab classes (onsite/online)

Office hours

See the website of Elettra Agliardi