An introduction to financial economics and the efficient market hypothesis. Measures of investment risk. Portfolio theory. Models of asset returns and asset pricing models. Rectangular Pricing and Black Scholes estimation. Applications of futures and options on shares, bill futures, bond futures and swaps. Credit derivatives. Brownian motion and martingales. Stochastic calculus and Ito processes. -- Course Website
Prerequisites: <br/> 1234 (v.4)<br/> Economics 100<br/> <br/> or any previous version<br/> <br/> <br/><br/> <br/> OR<br/><br/> <br/> <br/> 312201 (v.1)<br/> Actuarial Economics 102<br/> <br/> <br/><br/> <br/> AND<br/><br/> <br/> 12607 (v.4)<br/> Finance Princi
