The different types of financial assets that exist, the markets that they trade in, and the determination of their prices and rates of return are examined. Specific topics that will be covered include the Markowitz portfolio selection model, the capital asset pricing model, the arbitrage pricing theory, the efficient markets hypothesis, the term structure of interest rates, and options. There will be almost no emphasis on issues in corporate finance.
ECON435: Financial Markets and the Macroeconomy
Prerequisite: Minimum grade of C- in ECON325 and ECON326; and 1 course with a minimum grade of C- from (ECON321, STAT400). Restriction: Must be in a major within the BSOS-Economics department; and must not have completed BMGT343. Credit only granted for: BMGT343 or ECON435. Additional information: Finance majors will not receive credit for ECON435.
Grading Method: Regular , Pass-Fail , Audit