Advanced Financial Economics

Description

Learn the fundamental theories of finance aligned with the current economic environment. Understand the operation of financial markets, the determination of stock and bond prices, and the criteria investors use to select risky assets. Explore how companies make investment decisions, raise capital, and distribute profits to shareholders and bondholders. Topics include bond structures and market circulation, bond pricing and interest/credit risks, the relationship between long- and short-term interest rates, corporate and stock market structures, and factors influencing stock prices. Study expected utility theory, diversification effects, optimal portfolios, the Capital Asset Pricing Model (CAPM), corporate fundraising methods, investment decisions, dividend policies, and optimal debt ratios. Gain insight into derivatives' structure, hedging, speculation, arbitrage trading, and theoretical pricing. Understand stock and bond market mechanisms, price determination, and fundamental corporate finance theories.