University of Galway

Course Module Information

Course Modules

Semester 2 | Credits: 5

This module provides an introduction to financial economics, with an emphasis on combining knowledge of `real world’ financial markets with economic theory, and with statistical methods, to value financial instruments and analyse portfolios. We ground our understanding of risk and return in statistical models, moving from the analysis of individual financial instruments such as shares or bonds, to the analysis of combinations of these in portfolios. We analyse the construction of optimal portfolios in mean-variance terms, and the implications these models have for the pricing of financial assets. We delve further into particular methods for the valuation of equity, bonds, and derivative instruments, especially options. A key focus is on the practical application of concepts through the analysis and interpretation of financial data, mainly using spreadsheets, and particularly in the context of an applied, data-driven financial analysis project.
(Language of instruction: English)

Learning Outcomes
  1. Explain the key functions and properties of financial instruments, and the markets in which they are traded.
  2. Find and manage high-quality financial markets data, especially using spreadsheet tools.
  3. Analyse the statistical properties of financial markets data.
  4. Construct portfolios according to risk-return criteria.
  5. Connect quantitative analyses to industry and policy challenges in financial economics
Assessments
  • Written Assessment (60%)
  • Continuous Assessment (40%)
Teachers
Reading List
  1. "Principles of Finance with Excel" by Benninga, S.
    Publisher: Oxford University Press
  2. "Excel Modeling and Estimation" by Holden, C.
    Publisher: Pearson
  3. "Financial Modeling" by Benninga, S.
    Publisher: MIT
The above information outlines module EC247: "Introduction to Financial Economics" and is valid from 2020 onwards.
Note: Module offerings and details may be subject to change.