Foundations of Asset Pricing

1 Course Unit

This course will cover methods and topics that form the foundations of modern asset pricing. These include: investment decisions under uncertainty, mean-variance theory, capital market equilibrium, arbitrage pricing theory, state prices, dynamic programming, and risk-neutral valuation as applied to option prices and fixed-income securities. Upon completion of this course, students should acquire a clear understanding of the major principles concerning individuals' portfolio decisions under uncertainty and the valuations of financial securities. In addition to the prerequisites one of the following courses is recommended FNCE 2050; BEPP 2500; MATH 3600; STAT 4330 Spring Mutually Exclusive: FNCE 5570, FNCE 7570 Prerequisite: FNCE 1000 AND FNCE 1010 AND MATH 1410 AND MATH 3120 AND STAT 4300 1 Course Unit