Course Description
This course is an introduction to economics of financial assets and financial markets. Topics: inter-temporal choice, expected utility theory, security valuation, selected asset pricing models, market efficiency, and the term structure of interest rates.
Intended Learning Outcomes
CILO-1: Discuss the various financial instruments and markets, including stocks, bonds, and derivatives, and their pricing and use in investment decision-making.
CILO-2: Apply portfolio theory to construct optimal portfolios that balance risk and return, based on their risk preferences and investment goals.
CILO-3: Analyze the term structure of interest rates and bond pricing, and evaluate the impact of interest rate changes on investment decisions.
CILO-4: Conduct security analysis to identify mispricing in financial assets, and utilize asset pricing models to estimate the fair value of these assets.