Understanding models of valuation of uncertain future cash flows (stocks, bonds, currencies, etc.).

Students will be able to navigate to the state-of-the-art asset pricing literature, both empirical and theoretical.

This course is divided into two sections. The first section covers the first six weeks and is taught by Nicola Borri. The following are the main topics addressed in the first section of this class: - A look at financial time series data - Utility based asset pricing - Estimation of factor models. - Habit Models - Models with Heterogenous Agents - Long-run risk models.

Cochrane, Asset Pricing. Papers and notes provided by the instructor.

Lectures and assignments with in-class discussion.

Weekly problem sets and in-class recitations.

These criteria are set by the Director of the RoME program.