Financial Theory - 4MMTF4

Part 1:

1. Utility functions
   1. Risk premium
2. The mean-variance approach
   1. Efficient Frontier
   2. Equilibrium models : CAPM
   3. Updating in uncertain future. Risk premium.
3. Arbitration and pricing using arbitrage.

Some basic notions in mathematics, probability and statistics.

NORMAL SESSION:
Type of exam: written exam 100%
Duration: 2 hours
Authorized documents: handwritten course notes.
Prohibited documents: any document other than handwritten course notes.
Material:

• authorized equipment: calculator
• equipment prohibited: any equipment other than the calculator

SECOND SESSION :
Type of exam: written exam 100%
Duration: 1h30
Authorized documents: handwritten double-sided A4 sheet
Prohibited documents: any document other than the handwritten double-sided A4 sheet
Material:

• authorized equipment: calculator
• equipment prohibited: any equipment other than the calculator
  Comments:

N1=E1
N2=E2
où E1: Session 1 examen écrit de 2h
E2: Session 2 examen écrit d'1h30

• • MCC en distanciel **
    N1=E1
    N2=E2
    où E1: Session 1 examen écrit en distanciel de 2h
    E2: Session 2 examen écrit d'1h30 en distanciel

The course exists in the following branches:

• Curriculum - Financial Engineering - Semester 7

Course ID : 4MMTF4
Course language(s):

The course is attached to the following structures:

• Team Finance.

You can find this course among all other courses.

Quittard-Pinon : Marchés des capitaux et théorie financière.
Merton : Continuous Time Finance
Briys et Viala : éléments de théorie financière.