In this course, we will derive various theoretical asset pricing models, develop tests of the implications of such models, and apply these models empirically.  The topical coverage will extend to fixed income and equity instruments, European options, portfolio construction and optimization, risk analysis and hedging, and various simulation methods including Monte Carlo techniques using normal as well as fat-tailed distributions, copulas, and principal components. Econometric methods will range from OLS to GMM (as well as IV estimation and GLS) and applications of appropriate probability distributions (for non-normal distributions and copulas).