Date 
Topics 
02.10.2012


Leaflet 
Topics:
 Organisatorical issues
 Introduction:
 Financial Systems
 Key Ideas and Research Methods in Financial Economics
 A Simple Example: Intertemporal RiskSharing
 Financial Decisions and the Theory of Choice
 Review: The Axioms of Choice and the Principle of Maximum Utility

03.10.2012

Problem set 1: problem 1 (download from Moodle)
(see also document in folder "Additional notes")
(mark the problem if you have prepared it and you are willing to present it)
Please note that you must not mark problems if you are not present in the course!
Topics:
 Financial Decisions and the Theory of Choice
 Review: The Axioms of Choice and the Principle of Maximum Utility

09.10.2012

Problem set 2: problems 23 (download from Moodle)
(mark the problems if you have prepared them and you are willing to present them)
Please note that you must not mark problems if you are not present in the course!
Topics:
 Financial Decisions and the Theory of Choice:
 Intertemporal transfer of funds
 Hedging risk

10.10.2012

Problem set 3: problem 6(a) (download from Moodle)
Determine the possible payoffs and their probabilities for each urn.
Write these as simple lotteries as in the example of slide set 6, slide 3 (cf. also slide 12).
(You need not mark this problem, but it will be helpful to understand some concepts we will discuss more easily if you prepare it!
Participating the discussion in the course will be taken into consideration for final grading.)
Topics:
 Decisions under Uncertainty (Risk)

16.10.2012

Problem set 2: problems 45
Problem set 3: problem 7
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 Decisions under Uncertainty (Risk)

17.10.2012

Problem set 3: problems 9, 15, 16
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 Decisions under Uncertainty (Risk)
 Measures of risk aversion
 Some remarks in behavioral aspects

23.10.2012

Problems 8, 10, 11, 12, 13, 14, 17 (Problem sets 3 and 4)
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 Optimal Portfolio Selection and Risk Diversification: MeanVariance Approach

24.10.2012

Topics:
 Optimal Portfolio Selection and Risk Diversification: MeanVariance Approach
Hint: If you need to review classical portfolio theory, see additional notes and the book of Copeland/Weston/Shastri.

30.10.2012

Problems 1821, 24 (Problem set 4 (part 1))
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 Market Equilibrium in the MeanVariance Framework: The Capital Asset Pricing Model (CAPM)

31.10.2012

Problems 25, 26 (Problem set 4 (part 2))
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 Discussion of the CAPM (cntd')

06.11.2012

Problems 2729 (Problem set 5)
(mark the problems if you have prepared them and you are willing to present them)
Topics:

07.11.2012

Midterm exam
Topics for the exam: slide sets 18 including exurses.

13.11.2012

Problems 3033 (Problem set 6)
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 TwoPeriod Model: StatePreference Approach (complete and incomplete markets)

14.11.2012

Topics:
 NoArbitrage Principle and the Theorem of Asset Prices

20.11.2012

Problems 3437 (Problem set 6)
(mark the problems if you have prepared them and you are willing to present them)
Topics:
 NoArbitrage Principle
 Consumption Based Asset Pricing Model

21.11.2012

Problems 38 (Problem set 6)
Solve this problem by using all approaches we discussed in the course.
(mark the problem if you have prepared it and you are willing to present them)
Topics:
 Consumption Based Asset Pricing Model

27.11.2012

Topics:
 Consumption Based Asset Pricing Model and Financial Markets Equilibria

28.11.2012

Topics:
 Pareto Efficiency in Financial Markets Equilbria
Problems 3942 (Problem set 6)
(mark the problem if you have prepared it and you are willing to present them)

04.12.2012

Problems 42(f)(g),
4352 (Problem set 7/8)
(mark the problem if you have prepared it and you are willing to present them)
Please note that problems we do not discuss on this day will be discussed in Dec 5.
You have to mark them again (only these marks will be relevant).

05.12.2012

Problems 5052
(mark the problem if you have prepared it and you are willing to present them)

11.12.2012

Final exam
