Asset Pricing and Financial Contracts

The first part of the course aims to provide a good knowledge of the core principles and topics of modern asset pricing theory. It presents key concepts, relations, and models of asset pricing to develop a sound understanding of the pricing of financial assets under realistic conditions of a multiperiod stochastic environment with incomplete markets. The Asset Pricing module covers various theories from the Stochastic Discount Factor Theory to the Consumption Capital Asset Pricing Model and discusses practical issues such as the equity premium puzzle.

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