ECON3379 · Economics

Financial Economics

Morrissey College of Arts & Sciences

This undergraduate elective focuses on financial economics, with specific emphasis on asset pricing and the valuation of risky cash flows. After developing and studying the details of consumer decision-making under uncertainty, it uses that general framework as a basis for understanding both equilibrium and no-arbitrage theories of securities pricing, including traditional models like the capital asset pricing model (CAPM), newer Arrow-Debreu theories, and, if time permits, arbitrage pricing theory (APT), the consumption capital asset pricing model (CCAPM), and martingale pricing methods.