Asset Pricing and Risk Management

Integrates micro and macro economics with topics in finance. Utility maximization within mean variance framework for portfolio analysis and capital asset pricing model. Corporate valuation and discounted cash flow analysis. Capital structure and principal-agent problem will lead into a discussion of the Efficient Markets Hypothesis and underlying assumptions. Market pricing, forecasting, and financial crises. Prerequisite: Economics 101 (or Economics 21 and 22); and Economics 104D or Statistical Science 111, 130, 210, 230, or 250, or BME 244L; and Economics 205D or Mathematics 212, 216, 219 or 222.