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Instructors: Daniel Huber; Prof. Dr. Ole Wilms
Event type:
Interactive class
Displayed in timetable as:
Hours per week:
3
Credits:
6,0
Language of instruction:
English
Min. | Max. participants:
- | 45
Comments/contents:
This master level course will give an introduction to financial decision making and markets. We will review the main empirical findings of financial markets and learn about models that relate macroeconomic quantities to asset prices. We begin with a brief overview about financial markets and the principles of asset pricing. Afterwards we analyze how different asset pricing models can explain financial market data. If time permits, we will also discuss the differences between optimal short- and long-term portfolio choice.
Learning objectives:
Upon completion of the course, you should be able to:
(1) Apply standard techniques to analyze financial market data
(2) Explain the key mechanisms of different asset pricing models
(3) Understand the key differences between short- and long-term portfolio choice
(4) Evaluate and compare different asset pricing models with regard to how they explain financial market data
Didactic concept:
The course provides an introduction to asset pricing and optimal portfolio choice at an advanced level. The lecture is interactive, meaning that students actively participate in discussions in class, prepare course materials outside class, and independently work on problem sets to deepen their understanding of the material. In addition, there will be a midterm assignment. Successful completion of the assignment provides a grade bonus.
The course is planned to take place on campus if the covid situation permits.
- The lecture slides will be available online before each lecture.
- There will be regular problem sets. Students are expected to work on these independently. We will also discuss them in class.
- There will be a midterm assignment. Students who do well on the assignment will receive a grade bonus of up to +0.7.
- There should be plenty of time to ask questions during the lectures. In addition, Prof. Wilms and Dr. Huber provide office hours on demand.
- All course materials will be made available on STiNE and/or OpenOlat.
Literature:
The course is mainly based the book: "Financial Decisions and Markets: A Course in Asset Pricing" by John Y. Campbell (2018). The book "Asset Pricing" by John H. Cochrane (2005) also helps to understand some of the concepts. The last part of the course is based on "Strategic Asset Allocation: Portfolio Choice for Long-Term Investors" by John Y. Campbell, J., and Luis M. Viceira (2001). But the most relevant concepts are also summarized in Campbell’s book (see Chapter 9).
Additional examination information:
On-campus exam:
Time to process the exam: 90 minutes.
First exam: date to be announced
Second exam: date to be announced
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