The aim of this course is to expose EPFL bachelor students to some of the main areas in financial economics. The course will be organized around six themes that are each covered over two or three weeks from two different angles:
- The time value of money and capital budgeting
- The risk/return tradeoff and portfolio choice
- Derivatives pricing and hedging
- Capital structure
- Agency and contract theory
- Trading by insiders
Within each
module we will start by introducing the theme and the main economic questions
that it raises, and relate these questions to real-world examples. For many
themes, we will then show students how one can construct a mathematical model
that formalizes the main tradeoffs that underlie the theme and which allows to
provide qualitative and quantitative answers to the questions that it raises.
- Professor: Pierre Collin Dufresne
- Professor: Rüdiger Fahlenbrach
- Professor: Julien Hugonnier
- Teacher: Luiz Ricardo Maudonado Bissoto
