Massachusetts Institute of Technology

14.45: Financial Economics

Spring 2006

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This course is a self contained introduction to the theory of investment decisions under uncertainty. Topics include interest rates, net present value, fixed income securities, the term structure of interest rates, portfolio separation theorems, CAPM, factor models, risk neutral pricing, valuation of options and intertemporal consumption and investment models. We will discuss both theoretical results and empirical tests of theoretical concepts.

Lecture: MW 10:30-12 E51-390 Recitation: F 11-12 E51-390

Professor Victor Chernozhukov TA: Arturo Ramírez Verdugo

vchern@mit.edu ramirezv@mit.edu

Office Hours: Walk-in or by appointment E52-371B Office Hours: Th 6-7 E52-262A

The web page for this course is now at Stellar:

http://stellar.mit.edu/S/course/14/sp06/14.45/

You need MIT certificates to access some of the material.