The course Asset Pricing I will provide students with the main theoretical and analytical tools to study and understand the economics of financial markets and portfolio choices. After learning the different structure that financial markets can take and the key functions that these perform, learners will analyze how financial markets affect saving and investment decisions in an economy with no uncertainty.
Asset Pricing Fundamentals
Asset Pricing Fundamentals
This course is part of Finance Specialization
Instructor: Lorenzo Pandolfi
Included with 
Gain insight into a topic and learn the fundamentals.
Intermediate level
Recommended experience
14 hours to complete
3 weeks at 4 hours a week
Flexible schedule
Learn at your own pace
What you'll learn
Understand the principles underlying investors' portfolio choices and the criteria that determine the prices of financial instruments
Understand the main functions performed by the financial markets
Analyzing how the introduction of the financial markets influences the saving choices of households
Analyzing how the introduction of the financial markets influences the investment choices of businesses in an economy without uncertainty
Skills you'll gain
Details to know
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Assessments
20 assignments
Taught in English
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This course is part of the Finance Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 6 modules in this course
By the end of this week, you will learn the various structures financial markets can adopt and comprehend their primary functions. You'll also be able to assess how the establishment of financial markets influences households' choices regarding saving and borrowing, along with companies' decisions regarding investment, all within an economy devoid of uncertainty.
What's included
31 videos4 readings3 assignments
This week you will learn the theoretical principles that underlie individual choices under uncertainty, that is, in the presence of risk, in light of expected utility theory. Additionally, you will examine how to characterize agents' attitudes towards risk and the primary criteria for comparing risky prospects. These criteria include first- and second-order stochastic dominance, as well as the mean-variance criterion.
What's included
21 videos4 readings3 assignments
By the end of this week you will understand how to analyze contingent claim markets and the risk neutral evaluation.
What's included
14 videos4 readings3 assignments
By the end of this week you will learn the principles underlying investors' portfolio choice and to analyze, in particular, how stock market participation depends on individual preferences and stocks' fundamentals (expected return and riskiness).
What's included
15 videos4 readings3 assignments
By the end of this week you will be able to identify the set of efficient portfolios in an economy with many risky assets and to analyze, in this economy, the portfolio choices of investors with mean-variance preferences, so as to characterize stocks' aggregate demand.
What's included
16 videos4 readings4 assignments
By the end of this week, you will learn the concept of equilibrium in financial markets. You'll apply this understanding to an economy featuring numerous risky assets and a riskless asset, all within a framework of risk-averse investors with mean-variance preferences. Additionally, you'll gain the ability to calculate equilibrium prices and expected excess returns. Furthermore, you'll recognize that these values are contingent upon the covariance risk of assets, which is quantified by asset betas.
What's included
17 videos4 readings4 assignments
Instructor
Offered by
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