FINANCE 710 / Financial Theory

3 unit(s)

(cross-listed as BUSINESS F710 )

Prerequisite(s): FINANCE 601 FINANCE 602 FINANCE 604 FINANCE 600

Antirequisite(s): BUSINESS F710 BUSINESS F770

This course explores the theoretical and conceptual foundations of finance. Topics include utility maximization and choices involving risk; state preference; the quantification of risk and return; asset pricing in perfect and imperfect markets; specification and testing of pricing models; the investment, financing, and dividend decisions of firms; and theories of agency cost and signaling.