Study with Professors from University of Oxford
Finance & Economics
Professor Alexei Parakhonyak
Program Background
Financial Economics focuses on the use of financial measurement technology to analyze the practical problems in the financial market. Including portfolio theory and asset allocation, asset pricing and factor model, market efficiency, exchange rate and interest rate forecasting, value at risk(VaR), etc. We will begin by introducing the time value of money and showing how it can be used to value and compare investments that deliver streams of future cash (with the cashflows from different investments varying in both their timing and size). We will then apply this valuation method to government bonds. We will show how they are priced and we will discuss how to measure the risk an investor faces from holding bond positions. We will then move on to the pricing of stocks and shares. Again this will start with arguments based on the time value of money. We will develop the famous Capital Asset Pricing Model for stocks, show how it fares when confronted with real stock price data and then discuss modifications to it that are required to square the model with the data. At this point, we will digress slightly. We will review the academic literature that exists on the question of whether stock markets are informationally efficient. This is essentially the same as asking whether investors can identify stocks that are wrongly priced and then trade those mis-priced stocks so as to make a profit. We will discuss the theoretical underpinnings of efficiency before reviewing the evidence on efficiency. Finally, we will introduce the most common types of derivative assets. These are forward contracts, futures contracts and option contracts. We will discuss how they are structured, how they are used by investors and finally how they are priced. In this case, pricing will use the no-arbitrage method.
40
Advanced Research & Lectures
Hours
10
Neuroeconomics & Decision Science Topics Covered
95%
Previous Students Satisfaction Rate
100%
Program Description
Learning objectives:
Provide students with the fundamentals of asset pricing in the areas of financial economics and policy analysis.
- Develop students' skills in applying asset pricing methods to practical financial scenarios in the context of policy analysis.
- Provide a deep understanding of financial market efficiency and policy response.
- To enable students to understand the operation mechanism of the securities market and its role in macroeconomic policy.
Learning outcomes:
Upon completion of the course and related readings and assessments, students should be able to:
Explain how present value and no arbitrage principles are applied to asset pricing and analyze their policy implications.
Describe the important differences between equities, bonds and derivative securities and discuss how these differences affect market policy.
Apply present value techniques to price stocks and bonds and assess their usefulness in policy making.
- Use mathematical tools to calculate the risk and return of a securities portfolio and conduct comprehensive analysis in conjunction with economic models.
- Assess policy considerations and industry implications in portfolio selection.
Develop, interpret and apply the Capital Asset Pricing Model (CAPM) to calculate expected equity returns and apply it to economic policy assessment.
- Critically evaluate the evidence on the efficiency of stock market information and explore its implications for economic policymaking.
- To analyze the pricing of derivative securities under arbitrage-free conditions, and to examine the application of these pricing mechanisms in policy analysis.
These revisions aim to give greater prominence to the perspective of financial economics and policy analysis, so that students not only acquire theoretical knowledge of asset pricing, but also integrate it into practical policy analysis.
Who can join the programme?
- High school students
- University students
- Students interested in finance, economics, financial engineering, business, or related fields.
Müfredat
Programme Schedule
| Date | Time | |
| Lesson 1 | 26 July 2026 | 10am - 12pm London time |
| Lesson 2 | 02 August 2026 | 10am - 12pm London time |
| Lesson 3 | 09 August 2026 | 10am - 12pm London time |
| Lesson 4 | 16 August 2026 | 10am - 12pm London time |
| Lesson 5 | 23 August 2026 | 10am - 12pm London time |
| Lesson 6 | 30 August 2026 | 10am - 12pm London time |
| Lesson 7 | 06 September 2026 | 10am - 12pm London time |
| Lesson 8 | 13 September 2026 | 10am - 12pm London time |
| Lesson 9 | 20 September 2026 | 10am - 12pm London time |
| Lesson 10 | 27 September 2026 | 10am - 12pm London time |
Published Research Paper Option
Once students have completed the final draft of their papers, they may choose to submit their work to international academic journals indexed by CPCI or EI. We provide guidance and support throughout the submission process for these indexed publications.
The publication fee is £690 per research article, as determined by the journal. Once an article is accepted, it typically becomes searchable on Google and on the journal’s platform approximately seven months after the publication offer is made.
