The lecture "Asset Pricing" deals with the valuation of risky claims to future payments. In doing so, the time structure and the uncertainty of the payment must be taken into account. The lecture introduces the stochastic discount factor and the central pricing equation that can be used to value any kind of assets. This applies to stocks as well as bonds or derivatives. The first part of the lecture presents the theoretical framework, while the second part addresses empirical issues related to asset pricing.
Basisliterature: Cochrane, J. (2005). Asset pricing - Rev. ed., Princeton Univ. Press.
The course "Asset Pricing" will be taught by Julian Thimme in the summer term 2025.