EC 4050

This course provides an understanding of the economic analysis of the financial system beyond the introductory level. It places particular emphasis on the structure, operation and the role of financial markets, such as money markets, capital markets and derivative markets, and the characteristics of various financial securities traded in these markets. The main topics covered in the course include economic theories of saving and investment behaviour, asset demand and supply under uncertainty, decision making by investors in the presence of uncertainty, portfolio analysis, managing risk, and the models of asset pricing.