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LEC # TOPICSREADINGS
1IntroductionRead Course Syllabus, BKM chapters 1-2, Merton (1990) and Sharpe (1995)
2Securities, Random Walk on Wall StreetRead BKM chapters 3 and 5, Fama (1995) and Kritzman (1993).
                Financial Theories
3Portfolio Theory, Part 1: Setting Up the ProblemRead BKM chapters 6 and 7, Elton and Gruber (2000) and Kritzman (1992).
4Portfolio Theory, Part 2: Skewness Preference and Dynamic RebalancingRead BKM Appendix A, B of chapter 6, Black (1995).
5Portfolio Theory, Part 3: Multiple Risky AssetsRead BKM chapter 8, Kritzman (1994) and Kritzman (1991).
6The CAPM and APT, Part 1: TheoryRead BKM chapters 9-11, Roll and Ross (1995) and Kritzman (1991).
7The CAPM and APT, Part 2: Applications and TestsRead BKM chapter 13, Jagannathan and McGrattan (1995) and Kritzman (1993).
               Equity and Equity Options
8The Equity Market, Part 1: Patterns in the Cross-Section of StockReturns Read Fama and French (1992).
9The Equity Market, Part 2: More Patterns in the Cross-Section of Stock ReturnsRead Cochrane (1999), Kritzman (1991a) and Kritzman (1991b).
10Equity Options, Part 1: IntroductionRead BKM chapter 20.
11Equity Options, Part 2: Empirical Evidence, VolatilityRead BKM chapter 21.
12Mid-term Exams
                Fixed-Income and Credit-Sensitive Instruments
13The Fixed Income Market, Part 1: IntroductionRead BKM chapter 14, Kritzman (1993).
14The Fixed Income Market, Part 2: The Yield CurveRead BKM chapter 15, Kao (1993).
15Futures, Swaps, Caps/Floors, Swaptions, and Other DerivativesBKM chapters 22 and 23.
16The Credit Market, Part 1: Default Risk, Credit Spreads and Ratings TransitionsRead Duffie and Grleanu (2001).
17The Credit Market, Part 2: Credit DerivativesRead Reyfman and Toft (2001) and Altman, Caouette, Narayanan (1998).
                "Active" Investments and Market Efficiency
18Market EfficiencyRead BKM chapter 12, Rubinstein (2001) and Daniel and Titman (1999) and Fama (1998).
19Security Analysis and Stock SelectionsRead BKM chapters 17-19 and Business Week (2001).
20Active Portfolio ManagementRead BKM chapters 26 and 27, Thomas (2000), Waring, Whitney, Pirone and Castille (2000).
21Hedge Funds and Proprietary TradingRead Kritzman (1994a), Kritzman (1994b), Ross (1999) and Perrold (1999).
22Risk ManagementRead BKM chapter 27, Chow and Kritzman (2001), Bernstein (1995).
23CommodityRead BKM chapters 22 and 23.
                Behavioral Finance and Summary
24Behavioral FinanceRead Statman (1999).
25Summary and Review
26Repetition
27Final Exams
 


 



 








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