COURSES

    The courses, with ECTS credits, for the full-time programme

    Preparatory Courses (September)

    Mathematics  (ECTS: 0)
    The aim of the course is to provide students with the necessary mathematical tools employed in the teaching of main courses of the program and used in the related literature, as well as to familiarize them with the application of mathematics in addressing economic problems.The topics covered by the course are: functions and equations; the time value of money (the present and the future value of money); matrices (matrix operations, transposes and inverses, determinants, Cramer’s Rule); differential calculus (derivatives, rules of differentiation; Taylor Series expansion, maxima and minimal of functions of one and of more than one variables, optimization with and without constraints); integral calculus (rules of integration, definite and indefinite integrals, improper integrals).        
                                                                                                                         
     
    Statistics (ECTS:0)

    The main objective of the course is to remind student the basic notions in statistics so that they would be able to follow a course in Quantitative Analysis or Finance.Course contents: Random Variables and their Probability Distributions: Discrete and Continuous Random Variables. Joint Distributions, Conditional Distributions, and Independence. Features of Probability Distributions: Expected Value, Median, Variance, Standardizing a Random Variable. Features of Joint and Conditional Distributions, Covariance, Correlation, Variance of Sum of Random Variables, Conditional Expectation. The Normal and Related Distributions. Population, Parameters, and Random Sampling. Finite Sample Properties of Estimators. Interval Estimation and Confidence Intervals: Confidence Intervals for the Mean from a Normally Distributed Population.                                                

    1st Semester (September - January)

    Economics of Financial Markets  (ECTS:7.5)
    The main goal of the course is for students to understand the relationship between the banking system and the financial markets. It focuses on how the liquidity in an economy is shaped, and what is the role of the commercial banking system in this process. The determinants of money supply are presented, whereas the various monetary policy tools as well as the role of a Central Bank are discussed. The money demand process is analyzed as well as the transmission mechanisms of monetary policy. Special attention is given to the presentation of the ECB and the Eurosystem. Course Contents: Why study Money, Banking and Financial Markets? An overview of the financial system. What is Money? Multiple Deposit Creation and the Money Supply Process. Determinants of the Money Supply. Tools of Monetary Policy. What should Central Banks Do? Monetary Policy Goals, Strategy and Tactics. The Demand for Money. The IS-LM model. Monetary and Fiscal Policy in the IS-LM model. Aggregate Demand and Supply Analysis. Transmission Mechanisms of Monetary Policy: The Evidence. Money and Inflation. Rational Expectations: Implications for policy. The Foreign Exchange Market. The International Financial System.
    Financial Reporting and Anlaysis   (ECTS:7.5)

    The aim of the course is to guide students in the area of Financial Reporting. The students taking this course should be able to evaluate alternatives and base their decisions by having a good understanding about the concepts and techniques of IFRS reporting practices. The key accounting issues will be explained considering rapid changes in the economic environment and global markets. Key components of financial reporting are discussed:Financial Reporting and Accounting Standards, Conceptual Framework for Financial Reporting, Statement of Financial Position and Statement of Cash Flows Cash and Receivables, Valuation of Inventories Depreciation, Impairment and Depletion, Intangible Assets, Investments, Revenue Recognition, Accounting for Leases, Statement of Cash Flows.

    Quantitative Methods   (ECTS: 7.5)
    The lectures target to familiarize the class participants with the basic theoretical principles and the understanding of financial models. The objective of the applications is to familiarize the students with the various estimation techniques, applied on real data, on the areas of Economics and Finance. Random Variables. Covariance-Correlation dependence of random variables. Hypothesis Testing. Linear Regression and hypothesis testing. Economic Applications, with emphasis on CAPM. Transformations of random variables and introduction of dummy variables. Misspecification (autocorrelation, heteroskedasticity). Economic significance of heteroskedasticity with emphasis on portfolios and fund formation. GMM and Maximum Likelihood. Binary dependent variables (Logit, Probit). Introduction to time series with emphasis on GARCH and VAR models.                   
    Capital Markets and Portfolio Management (ECTS: 7.5)

     The aim of this course is to introduce students to the modern tools of investment analysis and appraisal, including investment decision under certainty and under uncertainty, pricing of risk, portfolio management, and asset pricing. It also covers topics on pricing fixed income securities, the term structure of interest rates and bond portfolio management. The course includes demonstrations/applications of the above techniques using computer software to see how they can be used, in practice. At the end of the course, the students would have learned the tools of the modern investment analysis and become familiar with their application, in practice. Course contents: Investment decisions under certainty, Investment decisions under uncertainty, Mean-variance portfolio analysis, The Capital Asset Pricing Model, Factor models and the Arbitrage Pricing Theory, Bond Markets, The term structure of interest rates: theory and practice, Bond portfolio management and International capital markets and portfolio management.

     2nd Semester (January - June)

    Corporate Finance (ECTS: 6)

    This course examines how firms access external funding in capital and money markets and factors that affect their capital structure decisions, namely the mix of various forms of financing. It also covers topics on investment valuation and capital budgeting decisions by corporates.

    The first part of the course (Section 1) focuses on financial statements, key financial indicators, capital budgeting and investment appraisal. Topical issues are discussed and special topics are covered, such as debt amortization and stock valuation. Students are also equipped with the knowledge to apply asset valuation in practice using appropriate data sources.

    The second part of the course (Section 2) discusses capital budgeting and business plans. A case study is discussed extensively in class. Following the basic steps of the case study, students are asked to prepare, submit and present their own analysis of a chosen Firm assuming that they represent the Firm in negotiations with its creditor Bank to reduce the interest rate of its long-term funding.

    The third part of the course (Section 3) focuses on the micro-foundations of corporate financing. Using as a starting point the benchmark case of an economy without frictions, it shows that under such circumstances capital structure decisions would be irrelevant for the value of the firm. This, so called Modigliani-Miller (MM) irrelevance proposition, is discussed using basic concepts of real options where students have the opportunity to gain a deeper insight into the valuation of risky-debt and equity. The MM irrelevance proposition is used to guide students’ thinking about the impact of financial transactions, such as share buybacks, on share valuations and the weighted average cost of capital (WACC). Real-world examples are considered where capital markets are subject to distortions and frictions, such as financial distress costs, principle-agent problems, and asymmetric information. The teaching mode is to identify factors of first-order importance that affect capital structure decisions by corporates. Such factors are considered first in isolation, and then think towards an optimal capital structure when different factors interact.

    Financial Derivatives (ECTS: 6)

    The aim of this course is to introduce students to the theoretical and practical aspects of financial derivatives.Specifically, the course examines the pricing and use of financial derivatives including options, forward contracts, futures contracts, swaps and credit derivatives.The course will extensively focus on the theory and applications of derivatives in speculation and risk management. Moreover, the course includes a computational demonstration of the pricing models with excel.          

    Course contents: The course covers the main financial derivatives: futures and futures on various underlying values. Options on shares, indices, currencies and futures. Interest rate swaps and foreign exchange. The focus of the analysis are pricing and hedging derivatives or derivatives positions by financial institutions. Special topics covered include, inter alia, the Black - Scholes model, binomial trees, hedging deltas, as well as various applications such as real rights in finance.                                                                                                                                                                                                                                                                                                       

    Banking and Risk Management (ΕCTS: 6)

    The course covers the main financial derivatives: futures and futures on various underlying values. Options on shares, indices, currencies and futures. Interest rate swaps and foreign exchange. The focus of the analysis are pricing and hedging derivatives or derivatives positions by financial institutions. Special topics covered include, inter alia, the Black - Scholes model, binomial trees, hedging deltas, as well as various applications such as real rights in finance.

    Course contents: A series of financial crises since 2007 has demonstrated the importance of recognizing and managing the multiple risks with which Financial Institutions (FI) are faced.   This course will provide an integrated approach to managing risks faced by FIs: their recognition, measurement, and mitigation.  We will place emphasis on the role that derivative products play in mitigating risk.  The risk management framework of FIs consists both of internal systems as well as external rules of prudential supervision.  We will cover both these dimensions.  Innate deficiencies have led to failures in both self-regulation of FIs as well as in their official supervision. In the course, we will examine solutions to the risk management problems facing the modern financial system.

    Elective Course 1

    Students select one elective course from the below indicative list course.

    Elective Course 2

    Students select one elective course from the below indicative list course.

    3rd Semester (September - January)

    Master's Dissertation (ECTS:30)

    The Master’s dissertation is mandatory for students in the full-time programme.

    * Elective Courses (indicative list)

    Companies’ and Banks’ Valuations and Mergers (ECTS: 6)

    The objective of the course are the valuations and the mergers & acquisitions of companies and Banks. Issues such as: corporate finance, capital and alternative investments, financial reporting systems, business groups, capital structure and operations decisions, acquisition methods and strategies, corporate restructuring, stock valuations, terms of m&a’s transactions and shareholders’ agreements.

    The desired learning outcomes are a full understanding of the concepts, tools, and methods of valuing companies as well as technical mergers & acquisitions, they will also be able to apply the above knowledge, tools, and methods in practice

    Credit Risk Management (ECTS:6)

    The first section presents standard interest rates models. These are then used in practice to price option or futures on Treasury Bills and Bonds, as well as interest caps and floors. They can also be used to hedge against risky debt. Having introduced the above tools, the second section the course makes an introduction to the credit risk, credit ratings, estimation of default probabilities, calculates the credit risk on debt instruments, presents credit risky bonds, credit default swaps, futures and options on credit default swap spreads, options on swaps, and finally introduces the mortgage-backed securities. The latter can be found very useful for practitioners in the markets for their every day activities, while students will learn all the necessary tools for credit risk management

    Financial Risk Management (ECTS:6)

    The educational aim of the course is to provide an integrated overview of the models of asset dynamics for different risk types (Equities, Interest Rates, FX & Credit) and the key techniques of identification, measurement and management of financial risk.Course contents:Part 1: review of basic concepts of securities and derivatives Part 2: theory of risk (statistics and metrics) Part 3: Value at risk: Historical simulation, parametric evaluation and Monte Carlo simulation

    Information Technologies, Trading & Investment Strategies  (ECTS:6)

    Dealing room operations focus, mainly, on trading financial securities and executing financial transactions, and are directly dictated from risk, liquidity and cash management constrains. The aim of this course is to make the student familiar with the functions, operations and trading strategies in the modern dealing room. It offers an opportunity to learn more about the Reuters Eikon application; the financial information service for professionals.The course attempts to develop an operational knowledge in trading financial securities with a focus on risk management and return enhancement. It deals comprehensively with the increased importance played by risk and uncertainty in today’s financial markets. Students are introduced to theoretical and empirical issues of different financial instruments, their valuation methodology, and their institutional uses in risk management.

    Market Microstructure with Computational and Statistical Methods  (ECTS:6)

    In this course we will study several aspects of trading in modern financial markets, including the following:

    What statistical facts about financial markets are actually practically useful for investors? What is a scientific approach to investing? How are ‘quant trading’ models constructed, implemented, and evaluated and what is the role of statistical and computational methods in these? What is market microstructure and how do the details of market organization influence trading costs and investments more generally? Here we will explain that market microstructure is the analysis of how trading happens in practice and the impact that practical details have on how prices are formed and market participants interact. This section will be very useful for students interested in developing hands on experience with trading.

    We will discuss several major asset classes including cryptos and we will touch on themes relevant to Fintech.

    Part I: Quantitative Analysis of Investments

    I.1: Key empirical / statistical facts about financial markets

    I.2: Quant trading models, design and implementation

    II.3: Implementation and limitations of baseline quant trading model

    Large Data and Statistical Learning (ECTS:6)

    This course is designed to introduce students to the concepts of large data handling and analysis with machine learning techniques. We start with computational analysis and inference and discuss the Monte Carlo, Bootstrap, k-fold cross-validation and recursive and rolling estimation methodologies. We provide a solid basis for time-series forecasting based on predictive linear regressions as well as using the Kalman Smoother. Next, we discuss large data handling techniques and discuss its features (seasonalities, nonstationarities). We discuss how unsupervised machine learning methodologies (k-means clustering, principal component analysis and dynamic factor analysis) could be applied in economics and finance forecasting applications (including the construction of Financial Conditions Indexes and Uncertainty Indicators). Next, we introduce the penalised regression methodologies of ridge, lasso and elastic net. We extend our discussion to unbalanced datasets and use bridge equations, MIDAS and U-MIDAS models as suggested remedies. Finally, our special topics include adaptive learning and modelling and applications of machine learning in portfolio selection.On top of our theory discussions, the course has a “hands-on” approach where all these methods applied in real data using the R Project for Statistical Analysis as the main scientific software.

    Special Issues in Finance and Investments  (ECTS:6)

    The objective of the course is students after its completion:

    to acquire skills in modern theoretical and applied tools for understanding international financial crises and to gain knowledge in international markets and economic relations, as well as in portfolio management of stocks under exchange rate risk.To acquire analytical and technical skills to assess exchange rate risk and other investment risks in the international environment, as well as currency speculative attacks.Be capable of understanding how economic policy (monetary/exchange rate and/or fiscal) affects an economy in the international financial system, both during normal and crises periods.To acquire modern knowledge, skills, and tools used in international investment institutions (e.g., private banks and investment firms), as well as in international organizations and economic policy institutes (e.g., central banks, OECD, International Monetary Fund).VaR (Value-at-Risk VaR) applications: Applications of VaR to stock, bond and foreign exchange Portfolios, economic capital, and credit, liquidity and operational risks.

    The acquisition of the following skills: Analytical methods and computational tools (e.g., Python/Matlab) for processing macroeconomic and financial data, applying them to understand the transmission mechanisms of economic crises, and analyzing economic policies to address such crises. Additionally, the ability to forecast exchange rate changes, manage portfolios with foreign stocks and exchange rate risk, and evaluate stock prices and returns in an international environment.  At the end of the course, the students will have become familiar with techniques and concepts on international investing risk management procedures and diversification, performance evaluation procedures and security selection, investment strategies accounting for taxes and inflation, investor constrains, investment policies and VaR procedures. VaR procedures for asset portfolios and loans management will be demonstrated through an econometric package

    Special Topics in Banking  (ECTS:6)

    The objective of the course is the understanding e of the banking sector in the creation, transmission, and amplification of international financial crises.Critical understanding of recent examples and empirical data on banking functions, banking failures, and banking supervision and regulation.

    Course contents:1. Overview of the banking sector.2. The role of central banks.3. Banks and financial crises: historical experience.4. Crisis transmission mechanisms: budget constraints, net worth declines, credit crunches.5. Crisis amplification mechanisms: bank leverage, fire sales, asset price spirals, systemic risk.6. Crisis causes: mistakes, moral hazard.7. Maturity mismatch and bank runs.8. Leverage and information panics.9. Bank interconnectedness, counterparty risk, and bank panics.10. Economic policy of banking regulation and supervision.11. Technological developments, AI, and the future of banking.12. Banking in China and developing economies.

    Sustainable Finance   (ECTS:6)
     

    Sustainable Investing will equip you with the insights, frameworks, and skills to evaluate environmental, social, and governance (ESG) factors and measure and manage impact resulting from investments. You will explore the evolving sustainable investing landscape, understand how to incorporate ESG factors into investment decisions, gain insights into climate risk and how to incorporate those implications into financial models, and develop your own perspective on the interaction of investing and impact. Indicatevely: The genesis of sustainability risk (NT), Regulatory response and the EU Taxonomy (NT), Sustainability risk: definition, measurement, factors (ΓΧ), ESG ratings (ΓΧ), ESG equity portfolio construction (NT), Sustainable equity financing and pricing (NT), Smart beta equity trading (NT), Impact of ESG on credit risk and ratings (ΓΧ), Green Bonds and the Green Bond Standard (ΓΧ), Sustainability bonds and the pricing of sustainability-linked bonds (ΓΧ), Climate risk credit finance (ΓΧ), Investment project appraisal under sustainability risk (NT)

    Students should be able to:
    Explore the evolving sustainable investing landscape Understand how to incorporate ESG factors into investment decisions Gain insights into the climate risk inherent in investment opportunities Price green bonds Evaluation of sustainable investments                                                                                                     

    Computational Econometrics in Economics and Finance - offered by another MSc  (ECTS:6)

    Objectives: Effective Understanding of Time Series: Students will gain an in-depth understanding of critical characteristics of time series, such as stationarity, causality, and temporal dependence. They will comprehend how these aspects affect economic data and will develop practical skills to apply these concepts to real-world problems. Deep Understanding of Economic and Financial Concepts: Students will acquire a deep understanding of fundamental concepts like risk and expected return and how these concepts relate to the behavior of economic and financial series. This will enhance their ability to analyze and manage uncertainty in financial markets. Practical Familiarity with Numerical Techniques: Students will gain hands-on experience in applying numerical techniques and theoretical models for analyzing economic and financial series. They will use modern computational tools to develop and test econometric models with real-world data. Development of Forecasting Skills: Students will develop the ability to forecast economic series using large databases, leveraging advanced machine learning and econometric techniques to improve the accuracy of their predictions in economic and financial environments. Highlighting Modern Econometric Techniques: Students will understand the advantages of modern econometric techniques in making optimal decisions in economics and finance. They will explore how data analysis can enhance strategic decision-making and reduce uncertainty in various economic scenarios

    Python for Business Economics and Finance - offered by another MSc  (ECTS:6)

    The objective of the course is students after its completion:

    Demonstrate proficiency in fundamental Python programming concepts, including data structures, control flow, and functions to be able to quantify Apply Python to solve practical problems in business, economics, and finance by developing financial models, conducting economic forecasting, and performing data-driven decision-making. Analyze financial datasets and make data-driven business decisions using both traditional and modern data analytics methods.

    The acquisition of the following skills:

    Utilize Python’s key libraries such as Pandas, NumPy, Matplotlib, and Statsmodels to manipulate, analyze, and visualize data. Effectively communicate analytical results through data visualizations and reports, enhancing decision-making capabilities in a business or financial context..

     

    It is possible for students to choose courses from other Master’s Programmes in the School or in the University following a decision by Programme’s Committee, and the General Assembly or Special Interdepartmental Committee of the other Department/Programme.The elective courses offered per year are decided by the Program Committee following the proposal of Coordinating Committe of the Program.

    Modification of the curriculum and redistribution of courses between semesters can be made following decisions of the governing bodies, in accordance with the Postgraduate Studies Regulation