316-469 Financial Economics

Students may not gain credit for both 316-469 Financial Economics and 316-677 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 and option pricing models, efficient markets theory, risk management and the theory of the term structure of interest rates.

• High level of development: written communication; problem solving; team work; application of theory to practice; critical thinking.

• Moderate level of development: collaborative learning; statistical reasoning; receptiveness to alternative ideas.

• Some level of development: oral communication.

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