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Handouts

Customized Course Readings in
Financial Markets and Investments

  1. Structure and Performance of Securities Markets
  2. News Clippings on Markets and Liquidity
  3. Automated Trading on Island
  4. Numerical Example Valuing Zeros
  5. Annuities and Perpetuities
  6. Continuous Compounding: Some Basics
  7. Annual Return on a Zero Sold Before Maturity
  8. TIPS: Treasury Inflation Protected Securities
  9. Geometric Average Versus Arithmetic Average
  10. Law of One Price and Arbitrage
  11. Arbitrage Opportunity in Zeros?
  12. Law of One Price Arbitrage Examples
  13. News Clippings on "International Arbitrage"
  14. Nine Major Steps in Modern Portfolio Theory
  15. A Note on Calculating Loss Probabilities
  16. Note on Covariance and Correlation
  17. Risk and Return Table for Two Assets
  18. Numerical Example Creating Zero Risk Portfolio
  19. Gains from Diversification: A Two-Security Example
  20. Portfolio Variance with Many Risky Securities
  21. News Clippings on Portfolio Risk
  22. Historical Beta Estimates
  23. Leverage and Risk
  24. A Guide to the Interactive Portfolio Optimizer
  25. Excess Returns and Beta: Deriving the Security Market Line
  26. News Clippings on Applying CAPM
  27. Sample Mid-Term Questions/Answers
  28. NPV Versus IRR
  29. Equity Valuation Formulas
  30. News Clippings on Equity Valuation
  31. Yield Calculations for Treasury Bills
  32. Numerical Examples of Coupon Yield, ... and YTM
  33. Calculating the Annual Return on Coupon Bonds
  34. News Clippings on Bond Returns
  35. Summary of Yield Measures
  36. Historical Yield Curves
  37. News Clippings on the Yield Curve
  38. Forward Interest Rates
  39. An Example of ... Constructing a Forward Loan ...
  40. Equilibrium Term Structure Under Expectations Theory
  41. Liquidity Premium Theory of the Term Structure
  42. Term Structure of Interest Rates-Chapter Exerpt
  43. Duration Formulas and Calculations
  44. News Clippings on Duration
  45. Immunization: A Numerical Example
  46. Simple Example of a Swap
  47. Replicating Cash Flows on a Swap
  48. Buffet versus Stulz on Derivatives
  49. Contractual Rights and Obligations of Calls and Puts
  50. News Clippings on Options
  51. Option Profit/Payoffs on Expiration: Sample Tables
  52. Numerical Arbitrage Example of Minimum Call Value Prior to Expiration
  53. Executive Stock Options: Minimum Value
  54. Simple Numerical Arbitrage Example of Put Call Parity
  55. Approximating the Value of an At-The-Money Forward Option
  56. News Clippings on Investing and Market Efficiency
  57. Sample Final Questions/Answers