040638 EK KFK CF/FD/FM: Principles of Finance

Andrea Gaunersdorfer and Mike Mariathasan
 

Date
Topics
01.10.2013
02.10.2013
no lectures (examination week in big classrooms)
08.10.2013
  Leaflet

Topics:

  • Organisatorical issues
  • Key Ideas and Research Methods in Financial Economics
  • Financial Decisions and the Theory of Choice: Intertemporal transfer of funds
    • Review: The Axioms of Choice and the Principle of Maximum Utility
09.10.2013
Problem set 1: 1, 2 - tick problems

Topics:

  • Financial Decisions and the Theory of Choice: Hedging risk
15.10.2013
Problem sets 1 and 2: 3, 4, 5 - tick problems

(You need not tick problem 5, 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)
16.10.2013
Problem set 3: 6 - tick problem

Topics:

  • Decisions under Uncertainty (Risk)
22.10.2013
Problem set 4: 7-14 - tick problems

Topics:

  • Decisions under Uncertainty (Risk):
  • Expected Utility Theory, risk aversion (definition and characterization)
23.10.2013
Topics:
  • Measuring risk aversion
  • Optimal Portfolio Selection and Risk Diversification: Mean Variance Approach
29.10.2013
Problem set 5: 15-23 - tick problems

Topics:

  • Optimal Portfolio Selection and Risk Diversification: Mean Variance Approach
30.10.2013
Topics:
  • Optimal Portfolio Selection and Risk Diversification: Mean Variance Approach
05.11.2013
Problem sets 5, 6: 22d, 24-30 - tick problems

Topics:

  • Market Equilibrium in the Mean-Variance Framework: The Capital Asset Pricing Model (CAPM)
06.11.2013
Topics:
  • Market Equilibrium in the Mean-Variance Framework: The Capital Asset Pricing Model (CAPM)
12.11.2013
Problem set 7: 31-34 - tick problems

Topics:

  • The Capital Asset Pricing Model (CAPM): Discussion
  • Two-Period Model: State-Preference Approach
13.11.2013
Midterm exam
19.11.2013
Problem set 8: 35, 36 - tick problems

Topics:

  • Two-Period Model: State-Preference Approach
  • No-Arbitrage Principle and the Fundamental Theorem of Asset Prices
20.11.2013
Topics:
  • No-Arbitrage Principle and the Fundamental Theorem of Asset Prices:
    Pricing of Derivatives
26.11.2013
Problem set 9: 37-51 - tick problems
27.11.2013
Topics:
  • Consumption-Based Asset Pricing Model
03.12.2013
Topics:
  • Consumption-Based Asset Pricing Model and Financial Markets Equilibria
  • Information Asymmetries on Financial Markets
04.12.2013
Problem set 10: 52-54 - tick problems
10.12.2013
11.12.2013
no lectures (examination week in big classrooms)
17.12.2013
Problem set 11: 55-59 - tick problems
18.12.2013
Final exam

Topics:

  • CAPM: Discussion
  • Returns and the Efficient Market Hypothesis
  • Two-Period Model: State-Preference Approach
  • No-Arbitrage Principle and the Fundamental Theorem of Asset Prices
  • Consumption-Based Asset Pricing Model and Financial Markets Equilibria
  • Information Asymmetries on Financial Markets