040638 Basics of Finance
 

Date
Topics
01.10.2018
Topics:
  • Introduction
  • Financial Systems (until slide II.19 (p.12) + slide VI.26 (p.77)) Functions of financial systems, problems of asymmetric information
08.10.2018
Topics:
  • Financial Systems Financial stability, Bretton Woods system, categorization of financial systems
  • Financial Decisions and the Theory of Choice: Intertemporal transfer of funds (until slide III.7 (p.25))
15.10.2018
Topics:
  • Financial Decisions and the Theory of Choice (until slide III.16 (p.28)): Axioms of Choice and the Principle of Maximum Utility
    Optimal consumption/investment decision
    Time consistent preferences
22.10.2018
Topics:
  • Financial Decisions and the Theory of Choice (until slide III.36 (p.35)): Optimal consumption/investment decision
    Fisher Separation and NPV rule
    Example 1
29.10.2018
Topics:
  • Fisher Separation and NPV rule: Examples
  • Hedging risk (until slide III.48, p.38)
05.11.2018
Topics:
  • Hedging risk
  • Formal equivalence between optimal consumption/investment decision under certainty and optimal demand for insurance
  • Some Cornerstones and Key Ideas of Modern Finance
  • Random Walk Model (until slide V.7, p.49)
12.11.2018
Topics:
  • Stochastic processes: (Geometric) Brownian motion (including Central Limit Theorem, A5a)
  • Continuous compounding
  • Way towards the Efficient Market Hypothesis (until slide V.30, p.56)
19.11.2018
Topics:
  • Efficient Market Hypothesis (EMH)
  • Three forms of EMH
  • Empirical facts
  • Behavioral Finance
  • Example of LTCM (A5b)
  • The Law of One Price and no-arbitrage pricing (until slide VI.10, p.72)
26.11.2018
HS 16
Topics:
  • The Law of One Price and no-arbitrage pricing
    • Pricing redundant assets by replication, complete markets
    • MM's proposition I
    • Derivatives (slides A5.1-10)
    • Derivative valuation (until slide VI.80)
03.12.2018
Topics:
  • Derivative valuation (cont)
  • Term Structure of Interest Rates (until slide VII.15)
10.12.2018
Topics:
  • Term Structure of Interest Rates (cont)
    • Forward rates
    • Yield to maturity
  • Bond price volatility: Duration (until slide VIII.14)
17.12.2018
Christmas holidays
24.12.2018
Christmas holidays
31.12.2018
Christmas holidays
07.01.2019
Topics:
  • Bond price volatility: Duration and Convexity, Immunization
14.01.2019
Topics:
  • Optimal Portfolio Selection and Risk Diversification: Mean-Variance Approach (until slide IX.38)
21.01.2019
Topics:
  • Optimal Portfolio Selection and Risk Diversification: Mean-Variance Approach (cont)
    • Optimal portfolio choice
    • Properties of the portfolio frontier, Separation Theorem of Tobin
    • Are stocks normally distributed?
    • Examples
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Mon, 28.01.2019
15:00-17:00
HS 1: 1st Examination date -> information at u:find
Thu, 28.02.2019
15:00-17:00
HS 1: 2nd Examination date -> information at u:find
Wed, 12.06.2019
15:00-17:00
HS 4: 3rd Examination date -> information at u:find
Mon, 23.09.2019
15:00-17:00
HS 6: 4th Examination date -> information at u:find