ECON-425 Financial Economics
A study of individual level investment decisions and the equilibrium determination of asset prices. Mean-variance analysis motivated by the tradeoff between risk and return. An introduction to asset pricing models, including the CAPM and multi-factor models. An introduction to derivatives, including stock options, futures and swaps. Discussions of the Efficient Markets Hypothesis, arbitrage, and contributions from behavioral finance. Other topics may include: fixed income pricing, Arrow-Debreu securities and the completeness of markets, and the binomial asset pricing model.
Other
Credits
1
Prerequisite
ECON-266, MATH-252 or MATH-253 in addition to ECON-275 and ECON-285, or consent of instructor.