Lecture, three hours. Requisite: course 102. Enforced corequisite: course 106FB. Not open for credit to students with credit for Management 130A. Only one course from Economics 106F and Management 130A may be applied toward Economics and Business Economics majors. Enrollment priority to Business Economics majors. Introduction to principles of asset valuation and role of financial markets in market economy. Basic topics include time value of money, discounted cash flow analysis, CAPM model, and applications to public policy. P/NP or letter grading.