The European Journal of Finance
Vol. 16, No. 6, September 2010, 481502
Population age structure and household portfolio choices in Italy
Marianna Brunettia,c,d and Costanza Torricellib,c
a SEFEMEQ
Department, University of Rome Tor Vergata, Via Columbia 2
American Economic Association
Portfolio Choices of Parents and Their Children as Young Adults: Asset Accumulation by
African-American Families
Author(s): Ngina S. Chiteji and Frank P. Stafford
Source: The American Economic Review, Vol. 89, No. 2, Papers a
FM 2555/9555A
Assignment 2 (2.5%)
Due date: Nov.26 at 12:30
1. Briefly discuss the role of financial managers.
2. You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the
first payment will be five years from now. Assumin
7 PM QSES 45$ * asirniavvgm
J ' I SO" W115 / QfZLZLHS Scheme
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1; Exhibit A: Price on Navembe'r 1,1014 of U5. Treasury $15000 principal strips With maturity
dates 1-20 years hence.
Implied 1 Year
Price of $1,000 Implied "X Sport Raie in Yr
$1,000 US U
Chapter 13 - Efficient Markets and Behavioral Finance
Chapter 13 Efficient Markets and Behavioral Finance
OVERVIEW
This chapter is essential reading for students of corporate finance. Financing decisions involve the firm
directly raising funds in capital
Chapter 09 - Risk and the Cost of Capital
Chapter 9 Risk and the Cost of Capital
OVERVIEW
The chapter elaborates on how modern theories about risk and return, discussed in previous chapters, are
applied to capital budgeting decisions. The main focus is on
Example 1.7.4
You can borrow money from three different
lenders who offer the following rates:
Bank A: i(2) = 8.1%
Bank B: i(12) = 7.95%
Bank C: i(4) = 8.04%
Rank the banks from best rate (to borrow) to
worst.
Solution to 1.7.4
Accumulating/Discounting wi
Other Simple Annuities (section 3.4)
(I) Annuity Due
An annuity-due is an annuity where the
periodic payments are due at the beginning
of each payment interval
term of an annuity-due starts at the time of
the 1st payment and ends one period after
the dat
Chapter 2 - Equivalence Equations
Equations of Value (section 2.1)
Concept of Dated Values
All financial decisions must take into
account the time value of money
For example,
Example 2.1.1
A man originally owes $2000 at the end of 4
years. Instead, it is
There are many different functional forms of
the accumulation function, a(t)
However, there are two functions that are
used most often in the financial world
These two functions represent two different
types of interest calculation:
1. Simple Interest (se
Continuous Annuities (section 4.4)
A continuous annuity is an annuity where
the payments are made continuously
throughout the year
It would be a special case of an annuity
that is payable more frequently than
interest is compounded, where m
It is more
Chapter 3 Simple Annuities
Introduction
Suppose you deposit $500 every 6-months
for 2-years.
How much will you have accumulated
immediately after the 4th deposit if j2 = 6%?
Suppose you made semi-annual deposits for
40-years? (80 payments in total) What i
2257 Cheat Sheet
Accounting Cycle
Transaction Unadjusted Trial BalanceAdjusting EntriesAdjusted Trial BalanceClosing
EntriesFinancial Statements (transaction)
Bank Reconciliation
Steps: 1. In last bank statement, check for late deposits/outstanding cheque
AS2427a Life Cons I- Text Chapters covered
(1)
Introduction to Life Insurance(lecture today)
(2) Survival Models
Future life time random variable, force of mortality,
international actuarial notation(IAN),expected future lifetime
(3) Life Tables and Sele
AS2427b Chapter 3 Lecture Notes
January 2016
AS2427a Life Contingencies I
Ch. 3 Life Tables and Selection
3.1 Intro/Overview
3.2 Life Tables
3.3 Fractional Age assumptions
3.4 National Life Tables
3.5 Survival Models for Life Insurance Policyholders
3.6 L
AS2427a
Chapter 2 Lecture Notes
January 2016
AS2427a Life Contingencies I
Ch. 2 Survival Models
(1)
Summary
(2)
The Future Lifetime Random Variable(Tx)
(3)
Force of Mortality
(4)
Actuarial Notation
(5)
Mean and standard Deviation of Tx
(6)
Curtate Future
AS2427b- Chapter1 Lecture Notes
January 2016
AS2427a Life Cons I- Text Chapters covered
(1)
Introduction to Life Insurance(lecture today)
(2)
Survival Models
Future life time random variable, force of mortality,
international actuarial notation(IAN),expe
FM2557 Midterm Test 1
-February 3, 2015-
Last name: _ First name _
Student Number: _
Instructions:
This is a 60-minute closed-book exam.
Only non-programmable calculators are permitted.
There are 4 questions and 50 points in total. The number of points
FM2557 Chapter 2-4
Todays Learning objectives
Option price relationship
Some materials are from Chapter 9
Examples
1
Price relationships for call/put options
Check call/put option prices, using AAPL (APPL Inc.) as the
underlying asset.
http:/finance.
FM2557 Chapter 1-1
Introduction to derivatives and financial markets
The key words to go through today are:
financial instruments, securities;
Common stocks, bonds, derivatives;
underlying (assets),
Financial markets, exchanges, OTC (over-thecounter)
FM2557 Chapter 2-1
Wrap up Chapter 1
long or short positions in stocks and bonds
Payoff and profit analysis
Chapter 2.1
Definition and features of forwards
no arbitrage argument for price relationship
Speculation, hedging and arbitrage
1
Long or sh
FM2557 Chapter 2-3: Options
Textbook coverage: Chapter 2.2, 2.3
Todays Learning objectives
call /put options,
Payoff/profit diagram for call and put
Long or short positions in options
Long or short positions in the underlying
Other terminology of o
Friends: S02E21
Monica wanted to buy a stock
MONICA: Hey, I went up.
RACHEL: What?
MONICA: My stock, MEG, it went up 2 points. Hey guys, do
you realize that if I had invested my $127 in myself yesterday
that I'd like have.a lot more than that today. Ya
Four Most Common DB Plans
1. Flat Benefit (about 16% of all DB plans)
Annual pension is a specified number of
dollars for each year of service
Advantage
Very simple; easy to understand by ees;
good plan for low income ees
Disadvantage
The flat amount per
The Problem of Old Age
Introduction
The economic problem of old age consists
of the following:
1. Growing population of older people
Year 2000- 12.5% of population was 65
and older
Year 2050-20% of population will be 65
and older
Most of tis growth is
(III) Government Plans
Canada Pension Plan (CPP)
Introduction
The CPP came into effect Jan. 1/66
Quebec opted out of the Federal plan and
created the QPP similar to CPP
CPP is compulsory
covers practically all employed people
(including the self-employ
Other Types of Employer Plans
Group RRSPs
These have gained in popularity over the years
as an alternative to pension plans
Main reason is that they are not subject to
pension standards legislation
Advantages of Group RRSPs (when compared
to RPPs)
For who