Master of Economics program in Financial-2018

Overview

Today’s financial market has changed dramatically and evolved significantly because of the development of the financial technology. The financial products and services in a digital society are more complicated and have been increasingly competitive in a changing fashion. The financial industry must be ready to adapt to the modern era. Further, such technology has a profound impact on financial economics professions. So, it is a big challenge for modern financial economists how to survive in the dynamic financial market.

The Graduate School of Development Economics has launched the Master of Economics program in Financial Economics since 2008, focusing on the allocation and deployment of capital resources in an uncertain environment with asymmetric information. The Master in Financial Economics program is a combination of knowledge and application of three pillars: economics, finance, and methodology, to produce finance professionals who can link economy with financial markets, both domestically and internationally, and can apply analytical tools for appropriate financial decision making.

Then, in the year 2017, the curriculum has been updated to keep up the changes by offering two major fields which are investment analysis and financial planning. The professional abilities earned from the program will enable our graduates to advance their career as investment analyst, fund manager, investment banker, researcher, economist, and wealth manager, and become successful in this changing financial world.

Program Philosophy: “To equip our graduates with the knowledge in economics and finance, as well as methodology and tools for making decision with strong ethical value in a dynamic financial market place.

Program Objectives: “The program aims to qualify students in the knowledge and application of economic theory, finance theory, and analytical tools. It is designed to increase students’ academic knowledge, analytical skills, research competence, along with ethics which will prepare them for success in the financial economics professions.”

Expected Learning Outcomes

  1. Understand and apply knowledge of economics, finance, and quantitative Analysis for the best interest of financial markets.
  2. Analyze and interpret data to solve real world with modern economic and financial theory along with efficient analytical tools.
  3. Engage in lifelong learning, career advancement activities, and keep up-to-date with knowledge and emerging technologies.
  4. embed sustainable development concepts in organizational and societal culture.
  5. Communicate effectively in writing and speaking.
  6. Portray thought Leadership and accountability ,and be an effective team member.
  7. Adhere to professional ethics and maintain societal responsibilities.

Program Structure

Courses

Plan A

Plan B

1. Remedial Courses

No credit

No credit

2. Basic Courses

6 credits

6 credits

3. Core Courses

9 credits

9 credits

4. Major Courses

9 credits

9 – 15 credits

5. Elective Courses

-

3 – 9 credits

6. Independent Study

-

3 credits

7. Thesis

12 credits

-

8. Comprehensive Examination

Comprehensive Examination

Comprehensive Examination

Total Credits

36 credits

36 credits

Course  Description

Remedial Course

FE 4001  Ethics and Elements of Financial Economics                                  1.5 credits

The course aims to develop an understanding of the underlying concepts of ethics, standards, and code of conducts related to elements of financial economics. It discusses the ethical issues and responsibilities to financial profession and organization.

Basic Courses

FE 5011  Quantitative Analysis for Financial Economics                                1.5 credits

This course covers principles and tools of quantitative analysis such as calculus, derivatives, metrics and optimization which will be basic for understanding and analysis in finance.

FE 5012  Financial Econometrics                                                                3  credits

The course includes econometric techniques of empirical investigation in economics and finance. The methodology includes regression analysis, hypothesis testing, and the models under the violation of classical assumptions. Next, the further tools in analyzing the financial data are also introduced, i.e. dummy variable, discrete choice model (Logit, Probit) and panel data models. All models are accompanied with real-data examples and application of standard computer packages.

FE 5013  Research in Financial Economics                                                   1.5 credits

This course offers research process, data collection, analytical tools and methods. It explores the important issues in economics and finance related to current empirical research such as capital market efficiency, financial forecasting, corporate policy and firm performance, and financial planning.

Core Courses

FE 6011  Microeconomics for Financial Analysis                                          3  credits

This course applies microeconomic theories to analyse behavior of various economic agents and economic problems that arise in the economy. It discusses the ethical concepts in decision making process. It covers resource allocation through market mechanism, behaviors of consumers and producers, decisions under uncertainty, consumption involving time, production and its cost, pricing and non pricing strategies, and the impact of government policies on buyers' and sellers' behavior, and on the economic welfare.

FE 6012  Macroeconomics and Financial System                                         3  credits

This course provides the fundamental macroeconomics concepts and the structure of financial system.  The objective is to equip students with a logical skill and ethical standards for the macroeconomic and financial analyses. Topics include determination of income, the role of fiscal and monetary policy, inflation and unemployment, growth theory and business cycles, and lessons from past financial crises.

FE 6013  Corporate Finance                                                                                3  credits

This course applies the modern corporate financial theory in making operating, financing, and investing decision. Capital structure, dividend policy, mergers and acquisitions, and other corporate activities related to financial decision making of the corporations are explored whether they are aligned with the target of the firm in maximizing shareholders' wealth and adhere to ethical standards, good governance, and corporate social responsibility.

Major  Courses

FE 7001  Portfolio Theory                                                                         3  credits

This course provides the principle asset allocation, modern portfolio theory, diversification, portfolio construction models. An analysis and management of securities risks, including portfolio management evaluation techniques will be examined.

FE 7011  Asset Pricing Theory                                                                    3  credits

This course explores asset valuation theory and the applications to real world valuation cases. It also provides decision-making tools under uncertainty and risk, including standard asset pricing models used to determine financial asset prices, particularly equity and debt securities. Valuation techniques such as discounted cash flows and market based approach are included.

FE 7012  Financial Derivatives and Risk Management                                   3  credits

This course introduces fundamental concepts of derivative pricing and hedging strategy, applying to a variety of underlying assets such as commodity, interest rate, currency and equity. Both analytical aspect and practical application of risk management are the main focuses of the course. Several financial derivatives will be examined including forwards, futures, swaps, options and credit derivatives.

FE 7021  Financial Planning and Wealth Management                                  3  credits

This course covers the meaning and importance of financial planning and wealth management. The roles and functions of financial planner as well as the core principles of financial planning and wealth management are also discussed. It instructs the financial planning process and the characteristics of good financial goals. Personal liquidity management, application of time value of money, personal data gathering, and analysis of personal financial statements are covered. Further, key issues regarding taxation and ethics of financial planner will be explored.

FE 7022  Investment Planning and Asset Management                                 3  credits

This course offers the meaning and importance of investment planning and also includes the investment planning process, the calculation of return on investment as well as related risk. It aims to construct efficient investment plan and asset allocation according to personal financial position and individual financial goals.

Elective  Courses

FE 7121  Financial Statement Analysis                                                        3  credits

This course introduces accounting structure and financial reporting principles.  It covers the analysis of financial information using financial ratios and other alternative methods to understand the firms’ financial performance and position. It aims to foster learners’ ability to use the financial information as an effective tool for the financial decision making.

FE 7122  Securities Analysis and Investment Strategy                                  3  credits

This course provides a rational disciplined investment principles and process for security analysis. Particular attention will be paid to both quantitative and qualitative aspects, including company analysis, valuation methodologies, and competitive strategy.

FE 7123  Forecasting Financial Time Series                                                            3  credits

This course introduces the time series econometric model to forecast the economic and financial data. The contents include decomposition of time series characteristics, long-run relationship and short-run response, and financial risk analysis.

FE 7124  Financial Modeling 3  credits

This course discusses the methodology of financial modeling including types of financial models, objectives and process of model development. Applications of financial models cover the investment valuation as well as risk-return analysis. It covers scenario analysis, model evaluation, case study, and applications of computer package.

 

FE 7125  Financial Market and Monetary Policy 3  credits

This course offers an analysis of monetary theories and the financial system. It covers the importance of the financial system and institutions, the functions of money, behavior of interest rates, financial structure and asymmetric information, bank management and regulation. In addition, the targets and instruments of monetary policies, the transmission mechanism of monetary policy and its effectiveness, rational expectations and its applications will be critically analyzed.

FE 7126  International Financial Markets                                                     3  credits

This course covers the international monetary system and balance of payments, the foreign exchange market, international capital markets and institutions, management of foreign exchange and political risks, and recent developments in international capital markets and the world economy.

FE 7127  Financial Innovation and Technology                                            3  credits

This course aims to equip students with the understanding of financial innovations including topics such as product development and its process, recent financial technology and instruments in both money and capital markets. More specifically, a critical analysis of its role in raising capital, investments, and risk management will be examined.

FE 7221  Insurance Planning                                                                                1.5  credits

This course examines the insurance planning which is the important tool to deal with the risk of financial plan. It gives the understandings of various types of risks, including causes, frequency, severity, for the assessment of impact and approach to deal with risk. The basics, types, and principles of insurance policies, life insurance, health insurance and non-life insurance are covered to analyse needs and appropriate policy for an effective risk transfer plan.

FE 7222  Retirement Planning                                                                    1.5  credits

This course offers the financial planning process for retirement which helps to achieve the objectives. The analysis covers both before retirement and in retirement phase to ensure there is enough money for retirement afterwards. The rights from the Social Security Fund, Government Pension Fund, Provident Fund, Retirement Mutual Fund will be examined.

FE 7223  Tax and Estate Planning                                                               1.5  credits

This course explores the objectives of tax planning, overview of the personal income tax calculation, and strategic tax planning for salary man, self-employed, and other types of income tax payer. It also covers estate planning and wills, including types of testament, inheritances, heirship, and other concerns.

FE 7224  Integrated Financial Planning                                                        1.5  credits

This course offers the structure and organizarion of the financial plan presentation. By integrating all financial plans together in a holistic way to meet clients' objectives, it instructs how to make the presentation attractive, reliable, and complete.

FE 8800 – 8900   Directed Studies                                                            1 – 3 credits

This course discusses special topics in the interest which is beneficial in developing further knowledge in financial economics.

Independent Study

FE 9000  Independent Study                                                                     3  credits

This course enables students to study and present individual research in a field of financial economics under the supervision of a faculty member. It aims to utilize knowledge in finance, economics, and research methodology. The goal of which is a written academic paper containing significant analysis and interesting results with policy implication.

Thesis

FE 9004  Thesis                                                                                        12  credits

This course offers students the opportunity to work on a specific research topic in the field of financial economics under the guidance and supervision of a main thesis advisor and comments from thesis committee. The focus is to utilize knowledge in financial economics as well as research and analytical skills in developing the outstanding academic research paper with local or international standards for publication.

 

Learning  Methodology

Qualification

1)     Applicants must hold a Bachelor’s degree in any field accredited by the Office of the Higher Education Commission (OHEC).

2)     In case of Written Examination, applicants must have work experience in any field at least one year after Bachelor’s degree graduation.

3)     In case of Interview Examination, applicants must have work experience in economics, financial, accounting or related field or investment experience at least one year after Bachelor’s degree graduation.