THE UNIVERSITY of EDINBURGH
DEGREE REGULATIONS & PROGRAMMES OF STUDY 2009/2010
Asset Pricing (P02122)
The aim of the module is to provide students with a good foundation in asset pricing, by using a blend of theoretical concepts, empirical evidence and some applications of the theory. The intention is for the students to increase their knowledge and understanding of modern finance theory. Within this context, the module covers the following topics: mean-variance analysis, the Capital Asset Pricing Model, the Arbitrage Pricing Theory, derivatives pricing; market microstructure with respect to Efficiency Market Hypothesis, security exchanges, asymmetric information and noise traders; behavioral finance and Individual portfolio choices.
? Pre-requisites : SGPE Postgraduates or Non Graduating Postgraduates Only.
? Normal year taken : Postgraduate
? Contact Teaching Time : 3 hour(s) per week for 6 weeks
All of the following classes
Summary of Intended Learning Outcomes
Knowledge and understanding of:-
• the building blocks of modern financial economics, the application of economic principles and reasoning to the main asset pricing models and financial instruments.
• standard theory and empirical analysis of trading and market making on security exchanges.
• the relationship between behavioral finance and asset pricing, and the way in which individual portfolio choices and behaviour are driven by personal and market psychology.
Degree Exam 100%
Contact and Further Information
The Course Secretary should be the first point of contact for all enquiries.
Ms Marie Craft
Prof Andy Snell
School Website : http://www.ed.ac.uk/econ/
College Website : http://www.hss.ed.ac.uk/