Advanced Topics in Financial Economics explores theoretical foundations and modern developments in asset pricing and financial decision-making under uncertainty. The course provides rigorous treatment of key concepts including portfolio choice, the Capital Asset Pricing Model (CAPM), Arrow-Debreu pricing, and applications such as option pricing and liquidity risk. It further investigates issues of asymmetric information, agency theory, and capital structure within both complete and incomplete market settings. Emphasis is placed on analytical modeling and equilibrium analysis, drawing on microeconomic principles and optimization theory. The course is designed for students with prior exposure to intermediate microeconomics and mathematical optimization, and is particularly suited for those aiming to pursue research or advanced professional work in finance or economics.
- Teacher: Martin Scheffel