Financial Economics

Catalog description

(cross-leveled with ECONOM 7328 ). Financial economics is economics applied to tradeable financial assets, such as stocks and bonds. The main topics covered are the valuation of stocks, bonds, and other financial assets; portfolio theory; the capital asset pricing model; the efficient market hypothesis; capital structure theories; options and other derivatives; principal/agent issues; and behavioral finance. The course uses simple math and current examples to understand and apply the theories. Credit Hour s : 3 Prerequisites: ( ECONOM 1014 or ABM 1041 ) and ( MATH 1400 or MATH 1500 ) and ( ECONOM 3271 or STAT 2200 or STAT 2500 or STAT 4710 or STAT 4750 or ABM 2225 ). May be restricted to Economics majors only during early registration