Foundations of Financial Economics

The Foundations of Financial Economics microcredential helps you prepare for a career in financial services and consulting. With finance professionals earning a median salary nearly double that of other fields, this microcredential offers a strong return on investment. 

You will also gain access to UAlbany’s world-class faculty for developing your knowledge and skill in Financial Economics.  

Completion Requirements

To earn this nine-credit microcredential, you will complete three graduate-level courses. 

• AECO 500 Microeconomics: Learn rational choice theory as the foundation for asset demand and portfolio selection.
• AECO 501 Macroeconomics: Study aggregate economic models to understand market-wide financial risk.
• AECO 566 Financial Economics: Learn the pricing models for equities, stocks, bonds and derivatives, with emphasis on economic intuition behind valuation.

This microcredential is self-contained; there is no background knowledge required. However, non-UAlbany students will need to apply as a non-degree student. 

It is recommended to start with AECO 500 and AECO 501 to learn the theoretical foundation and then study AECO 566. 

There are no course substitutions for this microcredential.

Learning Objectives

Learners who complete this microcredential will be prepared to perform the following analyses:

• Risk and Uncertainty: Use microeconomic principles to evaluate decision-making under risk and uncertainty, forming the basis for understanding asset demand and portfolio allocation.
• Interest Rates and Macroeconomic Dynamics: Apply macroeconomic theory to analyze the drivers of aggregate economic activity, including interest rate movements. Model interest rates through concepts such as impatience, inflation and default using Fisher’s framework.
• Equity Valuation: Conduct stock valuation using dividend discount models, including the Gordon Growth Model.
• Capital Structure and Leverage: Assess the impact of leverage on firm value through the Modigliani-Miller Theorem.
• Asset Pricing: Estimate required returns using models such as the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT).
• Derivative Valuation: Price options and other derivatives using binomial trees and the Black-Scholes model.
• Behavioral Finance: Analyze how psychological biases influence financial markets and investor decisions.

Eligibility & Registration

You can complete the Foundations of Financial Economics microcredential on the way to an MA in Economics, since all courses are stackable, or you can earn it as a stand-alone credential as a non-degree professional learner.

• Current UAlbany students: Contact your graduate advisor to register for the required courses.  
• Professional learners: Apply for non-degree study to register for the required courses. You will need to submit an application and transcript showing your highest degree received. An application fee and an accredited bachelor’s degree is required.

Cost

View current graduate tuition rates.

Earning the Badge

Once you successfully complete all required courses, please email [email protected] to request access to the completion form to receive your Credly badge.