363-1000-00L  Financial Economics

SemesterSpring Semester 2014
LecturersA. Bommier
Periodicityyearly recurring course
Language of instructionEnglish


AbstractThis is a course on the economics of financial decision making. It discusses portfolio choice theory, risk sharing, market equilibrium and asset pricing.
ObjectiveThe objective is to introduce the students to the economics of financial decision making.
ContentAfter an introducory class, the following topics will be discussed:
Arbitrage; Choice under uncertainty; Portfolio Choice; Risk sharing and insurance; Market equilibrium under symmetric information; Market equilibrium with asymmetric information; Intertemporal evaluation in discrete time; Continuous Time Finance.
LiteratureSuggesting reading:
- Demange G. and G. Laroque, Finance and the Economics of Uncertainty, Blackwell, 2006.

Other readings:
- Indgersoll, J., E., Theory of Financial Decision Making, Rowman and Littlefield Publishers.
- Leroy S and J. Werner, Principles of Financial Economics, Cambridge University Press, 2001