ECON 515 | Course Introduction and Application Information

Course Name
Quantitative Methods in Economics and Finance
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 515
Fall/Spring
3
0
3
7.5

Prerequisites
None
Course Language
English
Course Type
Elective
Course Level
Second Cycle
Course Coordinator -
Course Lecturer(s) -
Assistant(s) -
Course Objectives The aim of this course is to develop spreadsheet applications of models in economics and finance that are flexible enough to be modified in the future.
Course Description The students who succeeded in this course;
  • will be able to use statistical and financial functions in Excel.
  • will be able to develop spreadsheets of economic and financial models.
  • will be able to calculate the value of the firm based on cash flow projections.
  • will be able to perform econometric analysis of the simple regression model.
  • will be able to estimate the CAPM.
  • will be able to calculate bond duration in Excel.
  • will be able to calculate payment schedules for fixed-rate, flexible rate, constant payment and adjusted rate mortgages.
  • will be able to construct a spreadsheet to analyze portfolio return and risk.
Course Content The course develops economic and financial models using EXCEL.The most widely used financial calculations will be performed in a spreadsheet format using simulated and real world data. Econometric analysis will be undertaken using the regression tool pack in EXCEL. At the end of the course, you will have several financial models in a spreadsheet format that you can modify for future use. Topics covered include NPV, IRR, Bond pricing, duration, option pricing, BlackSholes and binomial option pricing models, value at risk, value of the firm, portfolio risk.

 



Course Category

Core Courses
Major Area Courses
X
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Introduction
2 Basic Financial Calculations (PV, NPV, IRR)
3 Econometric Models CAPM
4 Loans, Mortgages
5 Mortgages cont’d
6 Bonds and Duration
7 Midterm
8 Value of the Firm
9 Value of the Firm cont’d
10 Modeling Portfolios
11 Modeling Portfolios cont’d
12 Modeling Portfolios and VaR
13 Option Pricing
14 Binomial Option Pricing
15 Binomial Option Pricing cont’d
16 Binomial Option Pricing cont’d

 

Course Notes/Textbooks Simon Beninga, Financial Modelling
Suggested Readings/Materials

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
16
10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Homework / Assignments
5
25
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm
1
25
Final Exam
1
40
Total

Weighting of Semester Activities on the Final Grade
60
Weighting of End-of-Semester Activities on the Final Grade
40
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: 16 x total hours)
16
Study Hours Out of Class
16
3
Field Work
Quizzes / Studio Critiques
Homework / Assignments
5
13
Presentation / Jury
Project
Seminar / Workshop
Oral Exam
Midterms
1
24
Final Exam
1
40
    Total
225

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To improve and deepen actual and advanced level knowledge in economics in the level of expertise by inventive thoughts and/or research and to get inventive contributions to science.

X
2

To comprehend the interaction between economics and related fields; to achieve inventive results by using knowledge requiring expertise in analysis, synthesis and evaluation of new and complex ideas.

3

To be able to apply the advanced level knowledge acquired in economics and finance.

X
4

Creating new knowledge by combining the knowledge of financial economics with the knowledge coming from other disciplines and also be able to solve problems which requires expert knowledge by applying scientific methods.

5

To be able to critically evaluate the knowledge in financial economics, to lead learning and carry out advanced level research independently.

6

Being able to use a foreign language for both following scientific progress and for written and oral communication.

X
7

To be able to develop new strategic approaches for unexpected, complicated situations in financial economics and take responsibility in solving it.

X
8

To be able to use computer programs needed in the field financial economics as well as information and communication technologies in advanced levels.

9

To possess the communication network to put the economic and social needs of the region of residence on the agenda.

10

To have adequate social responsibility and conciousness about the needs of society and to have the experience and authority  to organize and support the operations that can affect and drive  the social dynamics when necessary.

11

To be able to think analytically to identify problems in financial economics and to be able to make policy recommendations in economics and finance based on scientific analysis of issues and problems.

12

To protect the social, scientific and ethical values at the data collection, interpretation and dissemination stages and to be able to introduce and supervise these values.

X
13

To be able to use the skills of modeling, empirical analysis and formulating policy options that are developed for financial economics, in interdisciplinary contexts.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest