The following is a list of topics covered in the course. Each topic links to a page containing the relevant video lectures and accompanying slides.
Video Lectures and Slides
Video Lectures
Capital Budgeting I
Description: This video lecture focuses on making financial decisions as a manager, including applying the NPV rule and calculating project cash flows. Another example presented incorporates discount rates over time and NPV in the context of project decisions.
Capital Budgeting II
Description: This video lecture presents applications of the NPV rule and project financing, as well as alternatives to NPV. Concepts presented include the profitability index, internal rate of return, and capital rationing.
Slides
Capital Budgeting Slides 1–36 (PDF)
- Video for Part I of Capital Budgeting covers slides 1–16
- Video for Part II of Capital Budgeting covers slides 20–36
Please note that slides 17–19 are not covered in the video lectures but can be reviewed independently. These slides present examples involving the calculation of discount rates over time and project interactions.
Video Lecture
Course Summary
Description: This video lecture summarizes the entire course, and serves as a review of the key concepts relevant to each of the topics covered in the course.
Slides
Course Summary Slides 1–16 (PDF)
- Video for Course Summary covers slides 1–16
Video Lectures
Efficient Markets I
Description: This video lecture presents an overview of the theory of market efficiency and an example of the Space Shuttle Challenger disaster.
Efficient Markets II
Description: This video lecture explores behavioral finance, why people avoid uncertainty, the link between rationality and human emotion, and human preferences for decision-making. Discussion and simulations frame the adaptive markets hypothesis and its implications.
Efficient Markets III
Description: This video lecture presents the limitations of CAPM and the practical implications of the adaptive markets hypothesis. Applications of the adaptive markets hypothesis are then placed in context of the economic crisis in 2008.
Slides
Efficient Market Slides 1–26 (PDF)
- Video for Part I of Efficient Markets covers slides 1–9
- Video for Part II of Efficient Markets covers slides 9–23
- Video for Part III of Efficient Markets covers slides 20–26
Video Lecture
Equities
Description: This video lecture provides an overview of equities and models for pricing equities, with a focus on using the dividend discount model.
Slides
- Video for Equities covers slides 1–9
Please note that slides 10–23 are not covered in the video lectures but can be reviewed independently. These slides present examples involving the dividend discount model, earnings-per-share and price-earnings ratios, and growth stocks.
Video Lectures
Fixed-Income Securities I
Part I of Fixed-Income Securities
Description: This video lecture introduces fixed-income securities along with examples of securities and market participants, and an industry overview. Trading frequency and the framework for valuation are presented by use of an example involving a coupon bond.
Fixed-Income Securities II
Part II of Fixed-Income Securities
Description: This video lecture introduces spot rates and forward rates in the context of yield curves and interest rate forecasts, and models for term structure interest rates. Examples are given through lecture and with data from U.S. Treasury Securities.
Fixed-Income Securities III
Part III of Fixed-Income Securities
Description: This video lecture continues to work through the valuation of a coupon bond, and using the law of one price in working with multiple coupon bonds. The video lecture also covers methods with which to measure the interest-rate risks of a bond.
Fixed-Income Securities IV
Part IV of Fixed-Income Securities
Description: This video lecture explores securitization’s impact on intermediation, sources of risk in corporate bonds. An example is given to demonstrate the effect of priority of payouts on expected values and the pricing of bonds, and the additional effect of correlation.
Slides
Fixed-Income Securities Slides 1–65 (PDF - 1.7MB)
- Video for Part I of Fixed-Income Securities covers slides 1–12
- Video for Part II of Fixed-Income Securities covers slides 13–32
- Video for Part III of Fixed-Income Securities covers slides 28–43
- Video for Part IV of Fixed-Income Securities covers slides 41–52
Please note that slides 53–65 are not covered in the video lectures but can be reviewed independently. These slides present an example involving simple securitization.
Video Lectures
Forward and Futures Contracts I
Part I of Forward and Futures Contracts
Description: This video lecture covers the motivation, definition, features, and examples of forward and futures contracts in light of the uncertainty of exchange rates, illiquidity, and counterparty risk.
Forward and Futures Contracts II
Part II of Forward and Futures Contracts
Description: This video lecture includes examples for calculating payoff, and pricing forward and futures contracts. Applications and qualifications for forwards and futures are also given.
Slides
Forward and Futures Contracts Slides 1–32 (PDF)
- Video for Part I of Forward and Futures Contracts covers slides 1–13
- Video for Part II of Forward and Futures Contracts covers slides 13–32
Video Lecture
Introduction and Course Overview
Introduction and Course Overview
Description: This video lecture introduces the framework of financial analysis, the flow model of the economy, the factors that affect financial decisions, and the fundamental principles of finance.
Slides
Introduction and Course Overview Slides 1–20 (PDF)
- Video for Introduction and Course Overview covers slides 1–20
Video Lectures
Options I
Description: This video lecture presents options, a derivative, as another kind of security. The two different kinds of options, calls and puts, and key terms used in describing options are defined.
Options II
Description: This video lecture covers interpreting payoff diagrams of call and put options and how to use the diagrams in option strategizing and betting on volatility. A brief historical background for option-pricing theory is also given.
Options III
Description: This video lecture continues to cover option pricing by deriving a generalized binomial model, and the implications of the conditions under which the formula holds.
Slides
- Video for Part I of Options covers slides 1–4
- Video for Part II of Options covers slides 3–27
- Video for Part III of Options covers slides 16–30
Video Lectures
Portfolio Theory I
Description: This video lecture introduces the portfolio as a combination of securities and offers guidelines for what constitutes a good portfolio. With regard to measuring risk and reward, a number of assumptions are set forth for the remainder of the course. A brief introduction to mean-variance analysis is presented.
Portfolio Theory II
Description: This video lecture walks through calculating properties of mean and variance for portfolio returns. Mean, standard deviation, and correlation are used as measures in portfolio analysis.
Portfolio Theory III
Description: This video lecture introduces the tangency portfolio and the Sharpe ratio as a measure of risk/reward trade-off.
Slides
Portfolio Theory Slides 1–46 (PDF)
- Video for Part I of Portfolio Theory covers slides 1–12
- Video for Part II of Portfolio Theory covers slides 12–41
- Video for Part III of Portfolio Theory covers slides 33–46
Video Lectures
Present Value Relations I
Part I of Present Value Relations
Description: This video lecture presents the definition of an asset as a sequence of current and future cash flows, and the implications of that definition. Valuation of cash flows is presented in the context of time, certainty, and the present value operator.
Present Value Relations II
Part II of Present Value Relations
Description: This video lecture covers examples on calculating net present value, comparing perpetuities and annuities, and conventions for compounding.
Present Value Relations III
Part III of Present Value Relations
Description: This video lecture starts with a discussion of leverage ratio with an example from Lehman Brothers. The video lecture then continues to cover the last portion of present value relations, including inflation and how to calculate real and nominal rate of return.
Slides
Present Value Relations Slides 1–36 (PDF)
- Video for Part I of Present Value Relations covers slides 1–16
- Video for Part II of Present Value Relations covers slides 17–29
- Video for Part III of Present Value Relations covers slides 30–36
Video Lectures
Risk and Return I
Description: This video lecture gives statistical background and context in preparation for dealing with risk and return. The empirical properties of stock returns are briefly introduced.
Risk and Return II
Description: This video lecture covers empirical properties of stocks and bonds, patterns of returns, and statistical measures of risk of a security. At the very end, stock market anomalies such as the size effect, the value premium, and momentum are presented.
Slides
Risk and Return Slides 1–35 (PDF)
- Video for Part I of Risk and Return covers slides 1–18
- Video for Part II of Risk and Return covers slides 11–35
Video Lectures
The CAPM and APT I
Description: This video lecture begins with a review of portfolio theory and presents the expected return of efficient portfolios as in the capital asset pricing model. The significance and implications of the Sharpe-Lintner CAPM are then discussed.
The CAPM and APT II
Description: This video lecture covers how to calculate a proper discount rate, the application of CAPM, and performance evaluation using the security market line.
The CAPM and APT III
Description: This video lecture starts with an example that uses CAPM to explain market-cap portfolios. Different methods of sorting, including by size, beta, and volatility, are analyzed.
Slides
The CAPM and APT Slides 1–28 (PDF)
- Video for Part I of The CAPM and APT covers slides 1–6
- Video for Part II of The CAPM and APT covers slides 4–18
- Video for Part III of The CAPM and APT covers slides 18–28
Course Info
Instructor
Departments
As Taught In
Fall
2008
Level
Learning Resource Types
grading
Exams with Solutions
notes
Lecture Notes
theaters
Lecture Videos
assignment_turned_in
Problem Sets with Solutions
