Empirical Finance

How do hi-tech firms decide to launch new products? How do portfolio managers decide to invest in stocks of hi-tech companies? These are the kinds of practical issues we will cover in this course. Modern financial theory and practice revolve around quantitative techniques for estimating expected returns on investments, whether the launch of a new product or the creation of a new mutual fund, and for measuring the performance of those investments over time. In the first part of the course, you will delve into cash flow analysis as it can be applied to a wide range of situations. In the second part, you will study financial markets and techniques for trading and investing in those markets. At the end you will create an investment portfolio based on your own areas of expertise and your own style of investing. (ECON 0211 and ECON 0316) 3 hrs. sem., 1 hr. lab