IAM524 FINANCIAL ECONOMICS
| Course Code: |
9700524 |
| METU Credit (Theoretical-Laboratory hours/week): |
3(3-0) |
| ECTS Credit: |
8.0 |
| Department: |
Institute Of Applied Mathematics |
| Language of Instruction: |
English |
| Level of Study: |
Graduate |
| Course Coordinator: |
Prof.Dr. ALÝ DEVÝN SEZER |
| Offered Semester: |
Fall or Spring Semesters. |
Course Content
The focus of this course is on asset pricing. The topics that will be discussed can be summarized as follows: Individual investment decisions under uncertainty are analyzed and the optimal portfolio theory is discussed using both static and dynamic approach. Then the theory of capital market equilibrium and asset valuation is introduced. In this context several equilibrium models of asset markets are presented. These include the Arrow-Debreu model of complete markets, the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT). Besides mutual fund separation and aggregation theorems are analyzed. Finally, the financial decisions of firms are considered and the Modigliani-Miller theorems are analyzed.
