316-469 Financial Economics

316-313 Microeconomics or equivalent.

This subject examines the economics of financial markets and financial institutions, including a substantial component of financial economic theory and some important current issues in the management of financial institutions and the evolution of financial markets. Topics include the theory of choice under certainty and uncertainty, asset pricing models, efficient markets theory, theory of financial intermediation, risk management and the theory of the term structure of interest rates.

A 3-hour end-of-semester examination (80%) and class assignments totalling approximately 2000 words (20%).