This class provides basic theoretical background for financial market so that policy and regulations related to financial market and insurance market can be discussed in depth. Students are required to take the intermediate micro and intermediate macro before taking this class. Prior exposure to financial markets is also encouraged. The topic covered are: (1) understanding interest rate, bond market, forward rate, housing price and investment in education; (2) understanding risk, stock price, stock option, and credit risk; (3) understanding insurance, moral hazard and adverse selection, solvency and liquidity, financial crisis and regulations. 3 Undergraduate hours
Prerequisites (Must be complete BEFORE taking this course):
ECON 102 (Microeconomic Principles)
ECON 103 (Macroeconomic Principles)
MATH 220 or MATH 221 (Calculus 1)
ECON 302 (Intermediate Microeconomic Theory)
Faculty Teaching the Course:
This course is taught by the below faculty ~ you may click on their name to view their website with additional information. Please check the Course Explorer or Enterprise/Self-Service to see what section they will be teaching (teaching schedules vary by semester).
Rui Zhao
Past Course Syllabi:
The following syllabi are from past semesters and should only be used as a guide for the information covered in the course and general structure of the course. The instructors have the right to change the course for upcoming semesters ~ please refer to the syllabus they distribute the first day of class.
ECON 462 Rui Zhao Past Syllabus
View the Course Explorer:
See when the course is offered in upcoming semesters and all the section details:
https://courses.cites.illinois.edu/schedule/terms/ECON/462
Restrictions:
Click Here to see our restrictions page for more information on restrictions & overrides
Course restrictions are managed by the Econ Undergraduate Studies Office. Instructors do NOT have the ability to provide overrides.
Additional Course Information:
The below is helpful information from a discussion with Professor Zhao regarding this course. Please keep in mind faculty may change the format of the course each semester, so it is important to follow the syllabus and guidelines for the semester you are taking the course (provided in class).
Is the class discussion or lecture based? How would you describe your teaching style?
The course is lecture based. It is also math intensive (comparable to a finance course). There will be assignments where students need to work in assigned groups (ie: Students take a group quiz every class
Is there a textbook? And is it required to buy?
No required textbook – two recommended books though. The lecture notes will be distributed along with exercise problems with answers.
In what ways are students evaluated/ graded (tests-- multiple choice or essay?, papers, etc)?
3 exams (2 midterms and 1 final (30% each), class quizzes (10%) – mostly group some individual (scores on quizzes are broken down as 50% if there, 50% based on how correct the answers are). In addition there are optional Assignments as well – but not graded or collected, but used during review sessions. More specifically about exams: 20% conceptual questions or T/F, 80% is calculations
What careers will your course give students an advantage in?
Anyone who wishes to pursue master programs in financial engineering industry
What are some classes students can take before this to help prepare them for the material?
She insists on 303 (another one of her classes). Students don’t do well if they take 303 and her course concurrently. This course is very math intensive, so students need to be comfortable with math – up to calculus 3 and have a good understanding of stats 202, 203.
Would this be a good course to use for a graduate school application?
Good course to take for graduate school if you want to get in to finance because of the pricing and theories behind it the material.
What is your background in Economics or the field you are teaching in?
She was interested in learning more harder part of marco – (asset pricing)
How would you consider the workload in comparison to other 400 Level Economics Courses?
Really depends on the students. Students will self select this course if math isn’t scary to them, but kids who are scared of math don’t do well in this class
What is your attendance/participation policy?
Mandatory because you have quizzes, if 80% of quizzes à get 100% for quizzes. Can make up quizzes with valid excuse
