Major theories underlying financial economics: arbitrage, market efficiency, Fisher’s separation theorem. Topics include: impact of cyclical fluctuations on consumption, investment, and financial decisions of consumers/firms, monetary policy and interest rate determination, loans for durables, mortgage loans, bond/stock valuation, investment-decision criteria, risk-return trade-offs, cost-of- capital analysis. Prerequisite(s): ECON 1001 and ECON 1002 each with a grade of C- or higher, or FYSM 1003 with a grade of C- or higher, ECON 1401 and ECON 1402, (or equivalent department-approved MATH course pair with a grade of C- or higher in each), and one of (BUSI 1001, BUSI 1002, BUSI 1003, or BUSI 1005) with a grade of C- or higher. Lectures three hours a week. [0.5 credits]
Major theories underlying financial economics: arbitrage, market efficiency, Fisher’s separation theorem. Topics include: impact of cyclical fluctuations on consumption, investment, and financial decisions of consumers/firms, monetary policy and interest rate determination, loans for durables, mortgage loans, bond/stock valuation, investment-decision criteria, risk-return trade-offs, cost-of- capital analysis. Prerequisite(s): ECON 1001 and ECON 1002 each with a grade of C- or higher, or FYSM 1003 with a grade of C- or higher, ECON 1401 and ECON 1402, (or equivalent department-approved MATH course pair with a grade of C- or higher in each), and one of (BUSI 1001, BUSI 1002, BUSI 1003, or BUSI 1005) with a grade of C- or higher. Lectures three hours a week. [0.5 credits]
