ECON 346Intro to Financial Economics

Catalog

Prerequisites: ECON 160 and ECON 162. Providing a foundation in the field of financial economics, this course offers an introduction to the theory and practice of financial decision-making by individuals and organizations, which involve allocation of resources over time under conditions of uncertainty. The course covers essential concepts, tools, methods and strategies, without getting too complicated or too far into theory. Topics include intertemporal consumption, saving and investing decisions, role of financial markets and flow of funds, financial statements and cash flow determination, time value of money, security valuation, risk and return, portfolio diversification, and cost of capital, at the basic level. Students will also learn how to use a financial calculator and Excel spreadsheet to solve basic finance problems. No prior finance course is necessary. Format: Grade is based on participation in class activities, quizzes, homework assignments, a midterm test and a final examination.