EC-480 Financial Economics
This course provides a solid foundation in financial economics. The course begins by setting out the nature of financial decision-making by households and firms in a risk-free world, and then introduces risk in the context of financial markets. It considers portfolio management, including mean-variance, utility-maximizing, and behavioral approaches. Attention next turns to asset valuation - of equities and fixed income securities, as well as financial derivatives. The final section evaluates the applicability of the ideas of financial economics to the real world.