金融经济学Week_1_ans.pdfVIP

EC3013 Financial Economics Questions for use in class – Week 1 – Suggested answers Topic 1: Introduction; arbitrage 1 What is financial economics? The economics of financial markets, the markets for risk and time. 2 What is neoclassical finance? Financial economics + neoclassical assumptions: a. rational, optimising agents b. economy at or near equilibrium 3 What is arbitrage? Exploitation of price differences to make risk-free profit 4 Distinguish between an arbitrage portfolio and an arbitrage opportu