PREREQUISITES: ECON-UA 10 OR ECON-UA 9010 AND ECON-UA 12 OR ECON-UA 9012
Prerequisite: Intermediate Microeconomics (ECON-UA 10) and Intermediate Macroeconomics (ECON-UA 12). Restriction: not open to students from the Stern School of Business. Offered every year. 4 points. /Provides theoretical and practical tools for understanding the operation of financial markets, the meaning of risk, and its relation to financial return. Also develops concepts of systematic versus idiosyncratic risk, market efficiency, the equilibrium determination of interest rates both in the overnight, interbank lending market and in the market for corporate debt, term and default premia in the bond market, and average excess stock returns in the equity market.