Chapter 12 Contents The process of personal portfolio selection The trade-off between expected return and risk Efficient diversification with many risky assets
Chapter 15 Contents How Options Work Investing with Options The Put-Call Parity Relationship Volatility Option Prices Two-State Option Pricing Dynamic Replication the Binomial Model The Black-Scholes model Implied Volatility
Capital Budgeting Any capital budgeting process consists of three elements: coming up with proposals for investment projects evaluating them -deciding which ones to accept and which to rejec
School of Management About my name About my TA About the course About the requirements 20% assignment class performance 15%mid- term test 65% final test About the book and authors
Chapter 2 Contents What is a Financial Financial Market Rates System Financial Intermediaries The Flow of Funds Financial Infrastructure The Functional and Regulation Perspective Governmental& Quasi- Financial Innovation Governmental the“Invisible Hand
Chapter 3 Contents Review of Financial The Relation Among Statements Ratios Market Values v. Book Limitations of Ratio Values Analysis Accounting v. Economic Purpose and Process of Measures of Income Financial Planning
The relationship between The law of one price an asset's' value& price arbitrage Value maximization Interest rates the law financial decisions of one price Accounting measures of Exchange rates value
Using Present Value Formulas to value Known Flows The Basic Building Blocks: Pure Discount Bonds Coupon Bonds, Current Yield, and Yield-To-Maturity Reading Bond Listings Why Yields for the Same Maturity Differ The Behavior of Bond Prices over Time
