ECON 136 SC - Financial Economics

This is an advanced undergraduate elective that focuses on financial economics which concerns the use and distribution of resources in markets in which decisions are made under uncertainty. The course places a special emphasis on asset pricing and the valuation of risky cash flows. We begin by modeling consumer decision-making under uncertainty, then use that general framework as a basis for understanding both equilibrium and no-arbitrage theories of securities pricing. This includes modern portfolio theory, the capital asset pricing model (CAPM), Arrow-Debreu theories of asset pricing, martingale pricing methods, the arbitrage pricing theory (APT), and the consumption capital asset pricing model (CCAPM).

Course Credit: 1.0

Please refer to the course schedule on the Scripps Portal for current course offerings and details.