Foundations of Financial Economics

This lecture introduces EPFL students to financial economics, covering topics such as the time value of money, capital budgeting, risk/return tradeoff, portfolio choice, derivatives pricing, and capital structure. The course aims to provide a basic understanding of finance concepts and their applications in real-world scenarios. The instructors emphasize the importance of financial decision-making for individuals and corporations, highlighting the role of equity and debt in funding investments. Through interactive sessions and homework assignments, students will learn how to analyze cash flows, evaluate projects, and make informed financial decisions.