Course Descriptions
Fundamentals
of Financial Economics ( 2 units )
This course covers the basic theories of asset pricing.
It begins with the standard discounted cash flow analysis
and generalizes this approach to develop the No Arbitrage
Pricing technique for security valuation. Applications including
fixed income securities, derivatives and contingent claims
will be considered. The course will then examine the basic
principles of optimal portfolio theory and consider special
models of equilibrium asset pricing, including the Capital
Asset Pricing Model and related Factor Models. Applications
to equity pricing and portfolio performance evaluation will
be explored. Programming and analytical exercises will be
assigned.
