Economics · Boston College
This undergraduate elective focuses on financial economics, with specific emphasis on asset pricing and the valuation of risky cash flows. After developing and studying the details of consumer decision-making under uncertainty, it uses that general framework as a basis for understanding both equilibrium and no-arbitrage theories of securities pricing, including traditional models like the capital asset pricing model (CAPM), newer Arrow-Debreu theories, and, if time permits, arbitrage pricing theory (APT), the consumption capital asset pricing model (CCAPM), and martingale pricing methods.
