2020-21 Academic Catalog

This course provides an introduction to the main financial instruments that are used to fund economic activity. We will explore how investment products function and learn how to price a few of them. Attention will be given to the choices investors make, and should make, when allocating portfolios. Topics include bond pricing, stock pricing, option pricing, the mortgage market, hedge funds, private equity, optimal portfolios, defaults, financial intermediary capital, and investors' behavioral biases. Prerequisite: Economics 110 and 111