Capital Market Theory

It reviews the microeconomic foundations of decision-making under uncertainty and as well as the basic mathematical and statistical techniques used to derive key results. Students will learn about - measures of risk aversion - empirical asset pricing puzzles - equilibrium risk-sharing and savings behaviour - the role of asymmetric information - models of inefficient equilibria - arbitrage and market completeness Upon completion, students will have the tools needed to read and understand the literature on capital markets and asset pricing.