This course presents the economic theory of asset pricing. Topics covered include decision making under uncertainty, mean-variance analysis, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory (APT), Equity Premium Puzzle, Bonds, and The Term Structure of Interest Rates.

Antirequisite(s): Economics 2181A/B, Economics 3332A/B, Economics 3346A/B, MOS 3316A/B.

Prerequisite(s): Economics 2300A/B.

Extra Information: 3 lecture hours.