Master 2022/2023

Topical Issues in Financial Economics

Type: Compulsory course (Financial Markets and Institutions)

Area of studies: Finance and Credit

Delivered by: School of Finance

Where: Faculty of Economic Sciences

When: 1 year, 3 module

Mode of studies: offline

Open to: students of all HSE University campuses

Instructors: Maria Shchepeleva

Master’s programme: Financial Markets and Financial Institutions

Language: English

ECTS credits: 3

Contact hours: 40

Course Syllabus

Abstract

a) Pre-requisites The course assumes a good knowledge of microeconomics (utility and equilibrium theories), a sound command of calculus, standard knowledge of the probability theory and mathematical statistics. b) Abstract This course introduces fundamental ideas in the theory of finance. It consists of three parts, including microeconomic foundations of finance, general ideas from corporate finance and asset pricing theory. The first section covers a number of topics, ranging from individual decision making under certainty and uncertainty to market equilibrium and the impact of information asymmetry on exchange outcomes. The second section revises some fundamental ideas from capital structure management such as Modigliani- 2 Miller theorem, the concept of WACC, the role of taxes and dividend policy in creating company’s value. The third section studies conventional models of asset pricing, e.g. the capital asset pricing model (CAPM) and its extensions, the arbitrage pricing theory (APT) and martingale pricing methods.