Financial Economics

Guest Instructor: 
Juliusz Radwanski
Time I: 
10:00am to 12:00pm
Venue I: 
Dorotheen Strasse 1, Room 05

The course focuses on Financial Economics through the lens of standard, neoclassical paradigm that postulates that
prices of assets must be determined by marginal utility of the investors. This simple idea has proven extremely
useful in explaining numerous asset pricing facts, but many puzzles remain unsolved, or at least there is no
consensus with respect to the fundamental reasons of why we observe some well-known, real-world phenomena
(like value premium, or profitability of momentum strategies). Much of the recent literature focuses therefore on the
extensions of the standard model, some of which are more plausible (frictions), and some less (large deviations from
investor rationality). But to understand the extensions, it is crucial to know the core, and the best papers are those,
which explain facts using as few departures from the neoclassical world as possible.

Starting: October 23, 2013

Fall 2013
End date of the whole course: 
Saturday, February 15, 2014 - 12:00pm