Financial Economics

Application of economic theory and statistics to the analyses of corporate investment and financing decisions and the equilibrium prices of financial instruments. Topics include the time value of money, structure of interest rates, evaluation of investment projects, the advantage of portfolio diversification, asset pricing models, corporate capital structure, dividend policy and the valuation of options and futures. Prerequisites: Economics 11 and either Economics 12 or Economics 18. In no case may a student receive credit for both Economics 150 and Economics 159.