A key learning objective is to equip students with the ability to critically assess and condense the underlying literature and to present the results coherently using the terminology and the toolkit of economics.

The course will take place in seminar and case study format, i.e., with presentations by the participants and discussions (moderated by the lecturer) of the selected literature and/or results of “investigating specific topics”. The investigation of specific topics can range from preparing a presentation on an article to the implementation of some finance-related model on the computer. Details will be provided at the kick-off meeting.In view of the format, which includes intensive discussions, a maximum of eight participants will be accepted. 

Financial markets play an important role for the functioning of economies. They are essential for supporting an efficient allocation of resources. Well-functioning financial markets rest upon well-informed market participants. In this seminar we will discuss important concepts based on the knowledge already gained during the study programme (e.g., in Economics or Capital Budgeting and Financing). We will review important types of assets, asset pricing models and real-world data from important market places.

Basic knowledge of – but more importantly – interest in economics and finance in the widest sense and willingness to address new issues; willingness to look into economic models and methods; interest in working with real-world data and models.Prerequisites: Completion of the Micro- and Macroeconomics courses is most highly recommended. Empirical Methods are an asset.

Suggestions will be provided at the kick-off meeting. Selection of possible background literature:Widely used (partly undergraduate-level) textbooks include:Berk, Jonathan and Peter DeMarzo (2020), Corporate Finance. 5th Edition. Pearson Education.Linton, Oliver (2019), Financial Econometrics. Models and Methods. Cambridge University Press.Exemplary classical (mostly graduate-level) textbooks include:Cochrane, John H. (2005), Asset Pricing. Revised Edition. Princeton University Press.Ingersoll, Jonathan E. Jr. (1987), Theory of Financial Decision Making. Studies in Financial Economics. Rowman & Littlefield.Lo, Andrew W. and A. Craig MacKinlay (1999), A Non-Random Walk Down Wall Street. Princeton University Press.Malkiel, Burton G. (2015), A Random Walk Down Wall Street. The Time-Tested Strategy for Successful Investing. Revised Edition. W. W. Norton& Company.Exemplary classical articles include:Lucas, Robert E. Jr. (1978), AssetPrices in an Exchange Economy. Econometrica 46, 1429–1445.Samuelson, Paul A. (1965), Proof That Properly Anticipated Prices Fluctuate Randomly. Industrial Management Review 6, 41–49.Other publications:Mayer, Colin, Micossi, Stefano, Onado, Marco, Pagano, Marco and Andrea Polo (2018), Finance and Investment. The European Case. Oxford UniversityPress.

Presentations and active participation in the discussions and case studies work.The dates for the meetings will be agreed upon at the kick-off meeting.

Not applicable.

Presentations and case studies work (70%) and active participation in the discussions (30%). The presentation and case studies documents (“slides”, “PowerPoint”, computer code, data documentation,…) will be included in the assessment.