This course develops and examines models for portfolio decisions by investors and the pricing of securities in capital markets. We will develop portfolio theory along the way and also study the extensive empirical work that characterizes movements in security prices and evaluates alternative asset pricing models. Topics include the mean variance portfolio analysis, the capital asset pricing model, arbitrage pricing theory, the empirical performance of asset pricing model (market anomalies), multi-factor asset pricing models, time varying risk and returns, and portfolio performance evaluation, including style and attribution analysis. Extensive use of the computer will be required. prereq: Fall A Cohort Completion