Financial Economics

Catalog description

This is an introductory course in Financial Economics with a particular emphasis on different theories of asset pricing. It will introduce fundamental ideas in Financial Economics like consumer financial decisions in perfect financial markets, how firms are valued, modelling risk in financial markets and finally culminate with a thorough discussion on the two major asset pricing models i.e. Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APT). Prerequisite(s): ECON 1101 or permission of instructor.