490_lecture1_2010 - Lecture 1 Overview Demand for Assets...

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Lecture 1 Overview Demand for Assets Rate of Return Short Sales Arbitrage Examples of Assets In Financial Economics we develop and apply theories that work for a variety of assets and the markets on which they are traded. Examples of Assets In Financial Economics we develop and apply theories that work for a variety of assets and the markets on which they are traded. Stocks: Shares of Firms Bonds: Long term debt issued by government or firms. Bills: Short term debt - Money Market Commodities: Metal, Oil, Ag. Products ... Examples of Assets In Financial Economics we develop and apply theories that that work for a variety of assets and the markets on which they are traded. Physical Assets: - Real Estate, Mortgage back securities... Foreign Exchange Markets Derivative Markets: - Options, Forwards, Futures, Swaps...
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Outline of Models Used Roughly speaking, we will investigate two types of models: Models in which investors chooses a portfolio of assets that “maximizes their utility.” Models in which we make conclusions about prices, assuming that there is “no arbitrage.” Demand for Assets
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  • Spring '12
  • Murphy
  • stock markets, s.t. p1

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