Spring 2010

The Economics of Finance

Listed in: Economics, as ECON-63


Geoffrey R. Woglom (Section 01)


A study of the role of financial markets in the efficient allocation of resources.  We look at how financial markets: (1) enable the transfer of resources across time and space; (2) facilitate the reduction and management of risk; and (3) provide information about the future, which is important to public policymakers as well as private firms and individuals.  The financial theories studied include: (1) the theory of present discounted values; (2) the capital asset pricing model; (3) the efficient markets hypothesis; and (4) the Black-Scholes model for the pricing of contingent claims.

Requisite: Economics 54 or 58 or equivalent, Mathematics 13 or equivalent or consent of the instructor.  Spring semester.  Professor Woglom.


2022-23: Not offered
Other years: Offered in Spring 2009, Spring 2010, Fall 2012, Fall 2014, Fall 2015