ECON V3025y Financial Economics

Spring 2006 Prof. Rajiv Sethi, 5b Lehman Hall

This course is an introduction to the economics of finance. We begin with a look at the role of financial assets, intermediaries and institutions in the economy, and move on to discuss the theories of portfolio choice and asset pricing in considerable detail. Topics include diversification, arbitrage, the valuation of bonds, stocks and contingent claims, forward and futures contracts, options, hedging, and market efficiency.