LFU:online

The participants receive a comprehensive overview over the major areas of modern finance theory and their practical relevance. The participants should be able to apply central theories and theoretical applications.

- Overview over the historical development and the core functions of financial markets.

- Risk, portfolio theory, diversification and capital market equilibrium.

- Fixed-income instruments and overview over major concepts like yield-to-maturity, duration and convexity.

- Credit risk, credit portfolio risk and an overview over major concepts like ratings, probabilities of default and credit risk premia.

- Different financial risks, Value at Risk, Expected Shortfall.

- Market Efficiency and how it can be measured. Are markets efficient?

- Decision biases, heuristics and behavioral anomalies of investors.

Lecture, experiment, discussion

written exam