Description: Foundations of modern financial economics; individuals' consumption and portfolio decisions under uncertainty; valuation of financial securities. Topics include: expected utility theory; stochastic dominance; mutual fund separation; portfolio frontiers; capital asset pricing model; arbitrage pricing theory; Arrow-Debreu economies; consumption and portfolio decisions; spanning; options; market imperfections; no trade theorems; rational expectations; financial signaling. Primarily for doctoral students in accounting, economics, and finance.
Course #: 15.416
Professor(s) who recently taught this course:
Stephen Ross