This course introduces the theoretical foundations of modern financial economics. The emphasis of this course is on the theoretical underpinnings of the field and the evaluation of models built to address the empirical regularities observed in the financial market. The emphasis will largely be on discrete-time models, though we will deal with continuous-time methods in some places.

CILO-1: Identify and compare important models of modern asset pricing. CILO-2: Develop models to solve empirical puzzles. CILO-3: Identify market incompleteness and the implications on theoretical asset pricing.