|
Lecture:Date |
Topic |
Text Chapters |
Other Readings |
|
1:
Thurs. 7/22 |
Course mechanics, overview.
Discussion of the investment project.
Introduction to Fisher
model
|
PCBR Ch.1: Arbitrage and Financial Decision
Making
PCBR Ch. 14: Interest Rates, Investments and Capital
Markets
Class slides:
422aintro_ez.pdf
Class
slides: 422fisher1_ez.pdf
tablet pc notes lec 1
|
Varian, Ch.10
Hirshleifer& Hirshleifer,
14.1-14.2
|
|
2:
Fri: 7/23 |
Intertemporal allocation, Fisher's exchange model. Present value, the
role of financial markets. |
PCBR Ch.1: Arbitrage and Financial Decision Making
Class
slides: 422fisher2_ez.pdf
tablet pc notes lec 2
|
Varian, Ch.10
Hirshleifer& Hirshleifer,
14.1-14.2 |
|
3-4:
Mon-Tues: 7/26 - 7/27 |
Intertemporal allocation, Fisher's model with production and exchange.
The Fisher separation theorem. Determinants of the level of real
interest rates.
Inflation and interest rates.
Start
Present value calculations. |
PCBR Ch.
2: The Time Value of Money
Class
slides: 422fisher2_ez.pdf
Class
slides: Present Value Methodology EZ df
tablet pc notes lec 3
tablet pc notes lec 4 |
Varian, Ch.10
Hirshleifer& Hirshleifer,
14.3-14.7 |
|
5:
Wed: 7/28 |
Present value calculations. |
PCBR Ch.
2: The Time Value of Money
PCBR Ch. 3: Interest
Rates
Class
slides: Present Value Methodology EZ df
tablet pc notes lec 5 |
|
|
6:
Thurs: 7/29 |
Valuation of bonds. Interest fluctuations and bond prices. |
PCBR Ch. 6: Valuing
Bonds
Class Slides:
Security
Valuation: Bonds EZ.pdf
tablet pc notes lec 6 |
|
|
7: Fri: 7/30 |
The
term structure of interest rates.
|
PCBR Ch. 6: Valuing
Bonds (Appendix)
Class Slides:
Security
Valuation: Bonds EZ.pdf
tablet pc notes lec 7 (these notes got lost when my laptop shut down
unexpectedly, sorry)
|
|
|
8: Mon: 8/2 |
The
term structure of interest rates.
Introduction to stock price
valuation |
PCBR Ch. 7: Valuing
Stocks
Class
slides: Security
Valuations Stocks.pdf
tablet pc notes lec 8 |
|
|
9: Tues: 8/3 |
Valuation of stock. Dividends, earnings, interest rates, and stock
prices. |
PCBR Ch. 7: Valuing Stocks
Class
slides: Security
Valuations Stocks.pdf
tablet pc notes lec 9 |
|
|
10: Wed: 8/4 |
Investment decisions. Net present value rule and applications.
Internal rate and its problems.
Further applications of net present value. |
PCBR Ch. 4: Investment Decistion Rules
PCBR Ch. 5: Fundamentals of Capital Budgeting
Class slides:
Investment Decision
Making EZ.pdf
tablet pc notes lec 10 |
|
|
11: Thurs: 8/5 |
Review: Random variables, distributions, expected values, variance,
covariance. |
PCBR Ch. 15: Uncertainty
Download RV Review and do the problems:
rvrewiew.pdf (problems),
rvkey.pdf (solutions)
Class slides:
Random Variable Review
EZ.pdf
tablet pc notes lec 11 |
|
|
12:
Fri: 8/6 |
Decision making under uncertainty.
The
expected utility hypothesis |
PCBR Ch. 15: Uncertainty
Class slides:
Expected Utility Theory
EZ.pdf
tablet pc notes lec
12 |
Varian, Ch.12
Pyndick and Rubinfeld, Ch 5 |
|
13: Mon: 8/9 |
Midterm Exam
Midterm
Exam Solutions
Project Assignment 1 Due. |
Closed book and closed note exam. I will allow one page (double-sided)
of notes.
Bring blue/green book and calculator |
|
|
14: Tues: 8/10 |
Introduction to risk and return.
|
PCBR Ch. 8: Capital
Markets and the Pricing of Risk
Class slides:
Risk & Return Updated.pdf
tablet pc notes lec 14 |
|
|
15:
Wed: 8/11 |
Introduction to portfolio theory |
PCBR Ch. 9: Optimal
Portfolio Choice and the Capital Asset Pricing Model (sections 1-6)
Class slides:
Portfolio Theory EZ.pdf
tablet pc notes lec 15 |
|
|
16: Thurs: 8/12 |
Individual investor optimum.
The Capital Asset Pricing Model
|
PCBR Ch. 9: Optimal
Portfolio Choice and the Capital Asset Pricing Model (sections 1-6)
Class slides:
Portfolio Theory EZ.pdf
tablet pc notes lec 16 |
|
|
17:
Fri: 8/13 |
The Capital Asset Pricing Model
Investor Behavior and Capital Market Efficiency |
PCBR Ch. 9: Optimal
Portfolio Choice and the Capital Asset Pricing Model (sections 7-8)
PCBR Ch. 10:
Investor Behavior and Capital Market Efficiency (section 1)
Class slides:
CAPM EZ.pdf
Class slides:
Market Efficiency EZ.pdf
tablet pc notes lec 17 |
|
|
18:
Mon: 8/16 |
Efficient capital markets, definition, implications.
Introduction
to Options |
PCBR Ch. 10:
Investor Behavior and Capital Market Efficiency
CBR Ch. 11: Financial
Options
Class slides:
Market Efficiency EZ.pdf
tablet pc notes lec 18 |
|
|
19:
Tues: 8/17 |
Introduction
to Options
Options markets, valuing options: basic ideas |
PCBR Ch. 11: Financial
Options
Class slides:
Options EZ.pdf
tablet pc notes lec 19 |
|
|
20: Wed: 8/18 |
Valuing options: binomial pricing and Black-Scholes. |
PCBR Ch. 12: Option Valuation
Class slides:
Options EZ.pdf
tablet pc notes lec 20
|
|
|
21:
Thurs: 8/19 |
Introduction to risk management |
PCBR Ch. 12: Option Valuation
Class slides:
Options EZ.pdf
tablet pc notes lec 21 |
|
|
22: Final Exam Fri: 8/20 |
Project Assignment 2 Due. |
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