Instructors: Leonardo Becchetti, Sales
Theory of Finance (Becchetti): Expected utility: axioms, theorems and paradoxes. Does empirical evidence confirms the income-happiness shape of the expected utility hypothesis? Evidence from happiness data. Measuring risk: subjective and objective approaches. Absolute and relative risk aversion. First and second order stochastic dominance. Choice under uncertainty with contingent goods. Insurance. Portfolio theory: separation theorem and CAPM;
Financial Regulation (Sales): The financial crisis as result of the interaction of economic factors and financial innovation. The regulatory response to the financial crisis: Basel III. Strengthening the regulatory framework. The ESAs (European Supervisory Authorities) to ensure financial stability; to strengthen and to enhance the EU supervisory framework. The Supervision on Systemically Important Financial Institutions. The Supervision on Financial Conglomerates. The Italian Banking System. The Shadow Banking System.