Lecture 7 Notes: Risk
The recent, notable increase in focus on financial risks can be traced in
part to the concerns of regulatory and investors about risk exposure of
financial institutions through their large positions in OTC derivatives.
COM60104: BUSINESS COMMUNICATION
CRITICAL REVIEW: CASE STUDY
This is an individual assignment.
21 April 2014, Monday by 2.00 p.m.
Read the article on
Lecture 1 Notes: Introduction to the Course
Questions for Next Class
5 group assignments 20%
Textbook: Bodie, Kane and Marc
Lecture 4 Notes: Predictions and
CAPM: In market equilibrium, investors are only rewarded for
bearing the market risk.
APT: In the absence of arbitrage, investors are only rewarded
for bearing the factor risk.
Lecture 2 Notes: Probability Theory
A brief review of probability distributions
Evaluating random events with normals.
Large surprises and normal distributions.
Statistical Data Analysis
Empirical distributions. Sample statistics.
The precision of sa
Lecture 6 Notes: Interest Rate
Interest rate swaps, caps, floors, and swaptions are over the
counter (OTC) interest rate derivatives.
Broadly defined, a derivative instrument is a formal agreement
between two parties specifying the exchange of
Lecture 3 Notes: Portfolio
A Little History
In March 1952, Harry Markowitz, a 25 year old
graduate student from the University of Chicago,
published Portfolio Selection in the Journal of
The paper opens with: The process of selecting a
Lecture 5 Notes: Equities
Equities are common stocks, representing ownership shares of a corporation. Two
limited liability: non-negative stock prices,
residual claim: equities are inherently more risky than fixed income secur
Lecture 9 Notes: Hedge Funds
A Little History of Hedge Funds
While mutual funds were the darlings of Wall Street in the 60s, Jones
hedge fund was outperforming the best mutual funds even after the 20%
incentive fee deduction. The news of Jones performance
Lecture 10 Notes: Commodities
The following table taken from the annual report of the Bank for In
ternational Settlements (BIS) reports the spectacular growth in exchange-traded derivatives, such as futures and options.
The figures indicate the amount of
Lecture 8 Notes: Security
What explains the price we observe from the market?
In an e cient market, the price reflects all information available to
pub- lic. Implicitly, there should be a pricing model that links the
market information to the mar
Anti-Smoking (Tak Nak To
Assignment 3 : Adobe Flash Video
Students Name :
Yu Jo Yee 0314797
Teh Sze Leng 0315433
Kii Sie Kong 0314737
Yap Yeow Phing 0314779
Teng Ying Ze 0314776
Intake : April 2013
Course : Foundation In Business
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