Class Meeting |
Topics (Chapters refer to Berk and DeMarzo (BD); BKM refers to Bodie, Kane and Marcus) |
1 |
Chap. 1 (BD): Financial Markets and Institutions
Chapter 1 (BKM): The Investment Environment
Chap. 29 (BD): Corporate Governance (also covers how corporate structure affects risk-taking and risk-monitoring) |
2 |
Chapter 2 (BKM) Asset Classes and Financial Instruments (Slides);
Chap. 3, 4 (BD): Interest Rates, Present Value and Arbitrage |
3 |
Chapter 3 (BKM): How Securities are Traded
Webnote: Securities Trading; Webnote: Short Sales and Margin Purchases |
4 |
Chapter 4 (BKM): Mutual Funds and Other Investment Companies |
5 |
Chap. 2 (BD): Financial Statement Analysis |
6 |
Chap. 7 (BD): Fundamentals of Capital Budgeting |
7 |
Chapter 5 (BKM): Introduction to Risk, Return, and the Historical Record |
8 |
Chap 8 (BD): Basics of Valuing securities: Bonds
Chap 9 (BD): Valuing Stocks |
9 |
Chapter 14 (BD): Capital Structure in a Perfect Market
Chapter 15 (BD): Debt and Taxes;
Chapter 16 (BD): Financial Distress, Managerial Incentives and Information |
10 |
Chapter 6 (BKM) Risk Aversion and Capital Allocation to Risky Assets
Webnote: Risk and Risk Aversion
Chapter 7 (BKM): Optimal Risky Portfolios
Webnote: Optimal Risky Portfolios |
11 |
Chapter 9 (BKM) The Capital Asset Pricing Model
Chapter 10 (BKM) Arbitrage Pricing Theory and Multifactor Models of Risk and Return |
12 |
Chapter 15 (BKM) The Term Structure of Interest Rates
Webnotes: The Determination of Interest Rates
Webnotes: The Term Structure of Interest Rates |
13 |
Chapter 13: Behavioral Finance with emphasis on decision-making in the firm (BKM, other books/material) (including efficient markets hypothesis) |
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Final Exam |
