Their uses, equilibrium prices, and relationships to primary securities such as stocks, bonds, and commodities. Theoretical analysis in context of markets in which they are traded. Subjects parallel those of standard financial management with added dimensions of exchange rate phenomena, risks and hedging, payment mechanisms, instruments, and institutions for international business. Departmental consent is required prior to registration. Recent theoretical and empirical research in financial economics.
Students present papers to colleagues.
Theory of the firm and consumer under certainty and general equilibrium theory as it specifically applies to business. Theory of the consumer under uncertainty. Risks and risk aversion, expected utility theory, state preference theory, portfolio selection, moral hazard, adverse selection, and asset pricing. Introduction to financial economics at a doctoral level. Topics include asset pricing, theory and empirics, options and futures, and issues in corporate finance.