The course aims to provide students with solid theoretical frameworks in asset pricing, corporate finance and other areas in finance. The course will equip students with both conceptual and analytical skills necessary to advance to more specialized courses. For asset pricing, concepts of risk and return are analyzed in the context of formal pricing models such as the Capital Asset Pricing Model and the Arbitrage Pricing Theory. Aspects of efficient market theory and anomalies are considered. For corporate finance, business decisions such as capital budgeting and financing will be discussed.

CILO-1: Extract financial data such as stock returns and perform basic data analyses using Excel. CILO-2: Describe the basics of finance, and explain and interpret the major finance theories including the Markowize portfolio theory, CAPM and APT. CILO-3: Discuss the various versions of market efficiency and relate it to behavioral finance, and evaluate their implications to investment. CILO-4: Apply the financial theories and models to solve portfolio problems with real data.