Date 
Topics 
03.10.2015

Topics:
 Organisatorical issues
 Key Ideas and Research Methods in Financial Economics

06.10.2016

Topics:
 Financial decisions and the theory of choice: Intertemporal transfer of funds
 The Axioms of Choice and the Principle of Maximum Utility
Prepare review problems 1 and 5.
We will not discuss these problems in the lecture and you need not tick them. But you may upload your solutions in Moodle.

10.10.2016

Problem set 1: 14  tick problems
Topics:
 Optimal consumption/investment decision
 Time consistent preferences
 Investment in real assets

13.10.2016

Topics:
 Fisher Separation
 Hedging risk

17.10.2016

Problem set 2: 57  tick problems

20.10.2016

Problem set 2: 7cd, 8  tick problems
(Tick problem 7cd again!)
Topics:

24.10.2016

Problem set 2: 9  tick problem
Topics:
 Some elements of critique on the model of insurance
 Formal equivalence of optimal investment/consumption decisions under certainty and optimal demand for insurance
 Decisions under uncertainty (risk)

27.10.2016

Please do not forget to answer online questions
(on Moodle and on http://gametheory.tau.ac.il)
Topics:
 Decision under uncertainty (risk): Axioms underlying Expected Utility Theory
 Online experiments:
Moodle: Which urn do you choose? (games 1+2)
Website "Games and Behavior": #39, 40

31.10.2016

Problem set 3: 10, 11(c), 12, 13  tick problems
Topics:
 Definition of risk aversion
Prepare review problems 2 and 3.
We will not discuss these problems in the lecture and you need not tick them. But you may upload your solutions in Moodle.

03.11.2016

Problem set 4: 14, 15(a)  tick problems
15(a): Sketch the graphs. For which domain is the function meaningful as a utility function?
Topics:
 Characterization of risk aversion
 Measuring risk aversion

07.11.2016

Problem set 4: 15(b)  tick problems
Topics:
 Observed facts
Discussion of online experiments

10.11.2016

Problem set 4: 16, 17, 1921  tick problems

14.11.2016

Topics:
 Optimal Portfolio Selection and Risk Diversification: MeanVariance Approach
 Portfolio selection problem
 Efficient frontier of risky assets
Prepare review problems 4(f), 7, 8.
We will not discuss these problems in the lecture and you need not tick them. But you may upload your solutions in Moodle.

17.11.2016

Topics:
 Optimal Portfolio Selection and Risk Diversification: MeanVariance Approach
 Efficient frontier with a riskfree asset
 Two fund separation theorem
 Remarks on the meanvariance approach
 Distribution of returns

21.11.2016

Problem set 5  tick problems

24.11.2016

Problem sets 5, 6: 2427  tick problems
(Tick problem 24 again!)
Topics:
 Remarks on the meanvariance approach

28.11.2016

14:1416:15: Midterm Exam

01.12.2016

Topics:
 Distribution of returns
 Market Equilibrium in the MeanVariance Framework: The Capital Asset Pricing Model (CAPM)
Problem 28

05.12.2016

Topics:
 The Capital Asset Pricing Model (CAPM)
 TwoPeriod Model: StatePreference Approach

08.12.2016

Holiday

12.12.2016

Problem set 7: 2931  tick problems

15.12.2016

Topics:
 Complete and Incomplete Markets
 The Law of One Price
Prepare review problem 4.

09.01.2017

Problem sets 8, 9: 32 (c), (d), 3334  tick problems

12.01.2017

Topics:
 NoArbitrage Principle: The Fundamental Theorem of Asset Prices
Problem 37
 Pricing of Derivatives

16.01.2017

Topics:
 Limits to Arbitrage
 Consumption Based Asset Pricing
 Equilibrium Pricing

19.01.2017

Topics:
 Equilibrium Pricing:
Consumption Based Asset Pricing Model, Market Equilibrium
Problem set 9  tick problems again!

23.01.2017

Problem sets 10, 11

26.01.2017

30.01.2016

14:15  16:30: Final exam
