ECO 2601: Introduction To Financial Economics

Abstract

Course Information 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). Pre-requisites: This a course that develops the fundamental theories of Financial Economics. As such, a firm understanding of Intermediate Micro Economic Theory is assumed. The course will also make frequent use of basic results in algebra, probability theory and some Linear Algebra. A basic level of familiarity with these mathematical tools is also assumed.