134b_syllabus.nm

134b_syllabus.nm - UNIVERSITY OF CALIFORNIA SANTA BARBARA...

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Unformatted text preview: UNIVERSITY OF CALIFORNIA SANTA BARBARA Econ 134B Investments Fall 2011 N.Mehra nmehra@econ.ucsb.edu The rationale of this course is to build a framework to evaluate financial theory in the light of available empirical evidence, as well as to build intuition and clarity of thought. It is an introduction to the principles of security valuation, portfolio theory, bond valuation and option pricing. Econ 134a is the prerequisite for this course. Course Materials I. Required Text: Bodie, Kane, and Marcus, Essentials of Investments, 8th Edition (2010). McGraw-Hill / Irwin. (BKM) II. Interesting Reading: (i) (ii) Burton Malkiel, A Random Walk Down Wall Street. Norton (2011). Peter Bernstein, Capital Ideas: the improbable origins of wall street (2005) These books will not be covered in class. You are encouraged to read them, especially if you plan to pursue a career in finance. Evaluation Grading is based on two midterms, a final and four homework assignments. The breakdown is as follows: Homework: Two Midterms: Final: 20% of course grade 40% of course grade 40% of course grade If your performance on the final is better than on the midterms, the final will count for 60% of the course grade and the higher scoring midterm for 20%. All homework assignments are to be done in groups. Late Homework will not be accepted. Administrative Information Teaching Assistant: Avinash Reddy aureddy@umail.ucsb.edu Avinash’s office: 2015 North Hall Avinash’s office hours: Wednesdays 2-4 Weekly Section: Mondays 6 – 6:50, Phelps 2516 GauchoSpace: https://gauchospace.ucsb.edu Please check here for lecture notes, problem sets, solutions, updates and additional course information. Professor Mehra’s office hours: Tuesdays, Thursdays, 11-12 and by appointment Professor Mehra’s office: 3020 North Hall Course Outline and Reading List THURSDAY SEPTEMBER 22 2011 Introduction. The Arithmetic of Finance Time Value of Money: revision TUESDAY SEPTEMBER 27 2011 Introduction. The Arithmetic of Finance Time Value of Money continued THURSDAY SEPTEMBER 29 2011 Financial Instruments, the Investment Environment, Rates of Return BKM, Chapters 1, 2, 3,4 PROBLEM SET 1 is due Tuesday, October 4th in class TUESDAY OCTOBER 4 2011 Diversification and Portfolio Theory: An Introduction to Risk and Return BKM, Chapters 5, 6 THURSDAY OCTOBER 6 2011 Diversification and Portfolio Theory An Introduction to Risk and Return BKM, Chapters 5,6 TUESDAY OCTOBER 11 2011 The Capital Asset Pricing Model BKM, Chapter 7 up to and including section 7.4 THURSDAY OCTOBER 13 2011 The Capital Asset Pricing Model BKM, Chapter 7 up to and including section 7.4 PROBLEM SET 2 is due Tuesday, October 13, in class THURSDAY OCTOBER 18, 2011 MIDTERM 1: Covers BKM Chapters THURSDAY OCTOBER 20 2011 Bond Portfolio Management: Pricing and Yields BKM, Chapter 10 TUESDAY OCTOBER 25 2011 Bond Portfolio Management: Duration and Immunization BKM, Chapter 11 THURSDAY OCTOBER 27 2011 Equity Valuation BKM, Chapter 13 TUESDAY NOVEMBER 1 2011 Equity Valuation continued BKM, Chapter 13 PROBLEM SET 3 is due Thursday, November 3rd in class THURSDAY NOVEMBER 3 2011 Practical Asset Allocation and Portfolio Evaluation BKM, Chapter 18 TUESDAY NOVEMBER 8 2011: MIDTERM II THURSDAY NOVEMBER 10 2011 Markets/Market Anomalies Market Efficiency BKM, Chapters 8,9 TUESDAY NOVEMBER 15 2011 Markets/Market Anomalies Market Efficiency BKM, Chapters 8,9 THURSDAY NOVEMBER 17 2011 Option Pricing BKM, Chapters 15,16 TUESDAY NOVEMBER 22 2011 Option Pricing BKM, Chapters 15,16 THURSDAY NOVEMBER 29 2011 Option Pricing BKM, Chapters 15,16 PROBLEM SET 4 is due Tuesday, November 29th in class THURSDAY DECEMBER 1 2011 Option Pricing BKM, Chapters 15,16 FINAL EXAM: Thursday, December 8th 4-7 pm, in class. ...
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This note was uploaded on 12/05/2011 for the course ECON 134b taught by Professor Johnhartman during the Fall '11 term at UCSB.

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