This module continues the exploration of CAPM, emphasizing:
Students will engage with the practical applications of these theories in real-world investment scenarios.
This module introduces the historical context and evolution of financial theory, emphasizing its distinct beginnings in business schools separate from economics. Key topics include:
The module concludes with a practical experiment illustrating the conditions under which the efficient markets hypothesis holds true.
This module focuses on economic models and their significance in understanding equilibrium. It covers:
By the end of this module, students will appreciate how these models lay the groundwork for future financial theories.
This module aims to make economic decisions clearer through the lens of equilibrium price and allocation calculations. It includes:
Students will learn to visualize economic interactions and their implications for financial markets.
This module reviews the evolution of economists' justifications for free markets, highlighting:
Additionally, the module introduces Irving Fisherâs ideas on incorporating time and assets into economic models, setting the stage for further financial analysis.
This module examines the historical context of interest, discussing:
By understanding interest as a relative price, students will challenge long-held beliefs and gain insights into market dynamics.
This module builds upon Fisher's theories by exploring the interplay between:
Students will engage with Fisher's famous examples to understand the broader implications of these relationships in economic contexts.
In this module, the role of collateral in financial transactions is examined, including:
Students will learn how historical perspectives inform modern financial practices.
This module discusses Yale's budgeting challenges and investment performance measurement, covering:
By analyzing real-world scenarios, students will develop practical financial management skills.
This module transitions from present values to dynamic present values, examining:
Additionally, the module addresses the implications of present value analysis on Social Security.
This module continues the Social Security discussion, focusing on:
Students will gain insights into the complexities of governmental financial programs.
This module introduces overlapping generations models, focusing on:
Students will explore how these models enhance the understanding of Social Security and the real rate of interest.
This module investigates the effects of demographic changes on interest rates and asset pricing, covering:
Students will gain a deeper understanding of the interplay between demographics and financial markets.
This module introduces uncertainty in financial markets, emphasizing:
Students will also learn about conditional expectations and their relevance to interest rate uncertainty.
This module examines the rational expectations hypothesis, discussing:
Students will grapple with the complexities of expectations and their influence on financial decision-making.
This module focuses on backward induction and optimal stopping times, including:
Students will apply these concepts to practical economic situations, enhancing their analytical skills.
This module explores callable bonds and mortgage prepayment options, covering:
By analyzing real data, students will understand the complexities of mortgage lending and investor behavior.
This module discusses modeling mortgage prepayments, focusing on:
Students will gain insight into the risks associated with mortgages and strategies for effective forecasting.
This module presents a personal narrative about the mortgage market, detailing:
By sharing personal experiences, the professor provides a unique perspective on the mortgage industry.
This module discusses dynamic hedging strategies, addressing:
Students will learn practical applications of dynamic hedging in real-world financial scenarios.
This module continues the discussion on dynamic hedging, focusing on:
Students will gain insights into effective measures for mitigating financial risk in dynamic environments.
This module introduces risk aversion concepts in financial theory, covering:
Students will explore the intersections of risk, return, and investment strategies in finance.
This module continues the exploration of CAPM, emphasizing:
Students will engage with the practical applications of these theories in real-world investment scenarios.
This module concludes the course by addressing the implications of CAPM, focusing on:
Students will synthesize their learning to understand how financial theories apply to policy debates.
This module introduces the Leverage Cycle theory, discussing:
Students will analyze how this theory fills gaps left by traditional financial theories.
This module concludes the course by exploring the dynamics of financial crises through the Leverage Cycle, including:
Students will understand how to monitor and regulate leverage to mitigate future crises.