Dynamics of Financial Markets

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Module Title : DYNAMICS OF FINANCIAL MARKETS

  • Type of Module:

PC (Prescribed Core Module)

X

PS (Prescribed Stream Module)

ES (Elective Stream Module)

E (Elective Module)

  • Level of Module: Compulsory in Financial Engineering Module

1


  • Year of Study

2


  • Semester

8


  • Number of credits allocated

  • Name of lecturer / lecturers : Prof. Nick Kondakis / PhD Candidate Vassilios Vassiliadis

  • Description : In the scope of this course, students come across with interest and very practical topics of international financial markets. The lecture program of this course can be characterized as ‘dynamically evolving’ due to the fact it adapts to the current situation of global developments (in all levels). More specifically, students have the opportunity to:

  1. Understand the relationships of important financial factors (bonds, stock markets, oil, gold etc.). After they have developed an adequate level of understanding of the nature of these assets, an analysis of the relationship between them is provided. This analysis is based on both a practical level of discussion (articles) and concepts from mathematical modeling.
  2. Assimilate the general framework of how financial markets work. This might be the most important topic of this course due to the fact that students realize the specific mechanisms of financial markets (how they affect each other, how news from other domains affect other financial indicators etc.)
  3. Have a better insight on the way rationale financial decision makers (investors) behave, through real-life up-to-date cases.
  4. Get familiar with certain software tools (Microsoft Office Excel, Matlab), through application in real-life cases.

  • Prerequisites : None

  • Module Contents ( Syllabus) :

Α/Α

Περιεχόμενα

1

· Introductory remarks on the dynamics of financial markets

  • Presentation of lectures
  • General discussion with students

2

· Study and analysis of significant market events (articles)

  • Bonds, Oil, Gold

3

· Laboratory Exercise 1: evaluation of investment on asset using statistical and financial measures

4

· Study and analysis of significant market events (articles)

  • Financial crisis: important factors (discussion)

5

  • Laboratory Exercise 2: stock portfolio optimization

6

· Study and analysis of significant market events (articles)

  • Arbitrage
  • Real Estate

7

  • Laboratory Exercise 3: Financial Stock Indices

8

· Study and analysis of significant market events (articles)

  • Automated trading systems
  • Special issues on financial engineering

9

· Laboratory Exercise 4: prediction models – detecting buy/sell signals

10

· Extra Laboratory Exercise: evaluation of buy/sell decisions in the framework of constructing portfolios from various assets

  • Recommended Reading :

Α) Principal Reference :

Set of slides

B ) Additional References :

Internet sources: bloomberg, wall street journal

  • Teaching Methods :

In class teaching, discussion, laboratory exercises, analysis and discussion on real-world cases (articles)

  • Assessment Methods :

- 4 laboratory exercises (35%)

- 1 extra laboratory assignment (10%)

- Final examination (55%)

  • Language of Instruction : Greek - English


Module Objective (preferably expressed in terms of learning outcomes and competences):

- Understanding of the main functions of financial markets worldwide.

- Comprehension of the general relationships among significant financial indicators

- Skills: through the laboratory exercises, students have the opportunity to get familiar with certain software tools. As a consequence, they could apply these skills in analyzing and solving real-world problems and issues, of the financial domain.

- Far and foremost, students gain the ability to perceive many developments in international financial markets, thus becoming aware, in a great extent, of what is going to be the next step in a sequence of events.