The course covers several advanced topics in asset pricing, trading-off risks and return, and portfolio optimization. More precisely, students will first analyze two relevant extensions of the Capital Asset Pricing Model (CAPM) and learn how to determine the corresponding equilibrium in financial markets.
Asset Pricing Models
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Asset Pricing Models
This course is part of Finance Specialization
Instructor: Giovanni Walter Puopolo
Included with 
Gain insight into a topic and learn the fundamentals.
Intermediate level
Recommended experience
9 hours to complete
3 weeks at 3 hours a week
Flexible schedule
Learn at your own pace
What you'll learn
Understand the principles connected to investors' portfolio choices and the criteria that determine the prices of financial instruments
Understand the main functions performed by the financial markets
Analyzing how their introduction influences the households' savings choices and companies' investment in an economy without uncertainty
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Assessments
16 assignments
Taught in English
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This course is part of the Finance Specialization
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There are 5 modules in this course
By the end of this week you will learn: how to determine the equilibrium in financial markets under two distinct scenarios within the Capital Asset Pricing Model framework. First, you'll explore equilibrium determination when there is an absence of a riskless security. Second, you'll delve into the complexities of equilibrium determination when investors' preferences are dynamic, and stock returns follow a normal distribution.
What's included
19 videos3 readings3 assignments
By the end of this week you will learn how to estimate empirically the risk-return relationship predicted by the Capital Asset Pricing Model
What's included
17 videos4 readings3 assignments
By the end of this week you will learn how to determine assets expected returns based on multiple risk factors and absence of arbitrage opportunities
What's included
24 videos4 readings4 assignments
By the end of this week, you will acquire a comprehensive understanding of determining equilibrium in a collaborative exchange economy, where agents make joint decisions on consumption and financial asset investment. Additionally, you will learn how to compute equilibrium asset prices and expected returns.
What's included
22 videos4 readings3 assignments
By the end of this week, you will gain a comprehensive knowledge of fixed income securities, including an understanding of their diverse characteristics, and the ability to assess their pricing and implied returns
What's included
22 videos3 readings3 assignments
Instructor
Offered by
Recommended if you're interested in Finance
University of Illinois Urbana-Champaign
University of Geneva
University of Illinois Urbana-Champaign
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