FNCE-7100 (3) Doctoral Seminar: Finance Theory

Develops the foundations for the study of modern financial economics by analyzing individuals' consumption and portfolio decisions in the context of risk and then traces the implications to market valuation of traded securities. Topics include the meaning and measurement of risk, portfolio theory, the Capital Asset Pricing Model, and arbitrage pricing arguments like those employed in Modigliani and Miller's capital structure theory and the Black-Scholes option pricing model. Requisites: Restricted to Business Administration (BUAD) graduate students only.