Description: Lecture, three hours; discussion, one hour. Requisite: course 174E. Continuation of course 174E. In-depth study of risk measures and instruments of risk management in investment portfolios and corporate financial structure. Exotic and real options, value at risk, mean-variance analysis, portfolio optimization, risk analysis, capital asset pricing model, market efficiency, and Modigliani-Miller theory. P/NP or letter grading.

Units: 4.0