Complete written notes for each session. Every set of notes opens with learning objectives and closes with a problem set, a computational lab and readings. Use Print / save as PDF on any lecture page for an offline copy.
| Lec # | Topic and objectives | Length |
|---|---|---|
| Part I · Risk, return and asset pricing | ||
| 1 | Returns, Risk, and the Foundations of Asset Pricing Measure simple and log returns; distinguish arithmetic and geometric performance; quantify risk and explain the role of stochastic discounting. | 8 min read |
| 2 | Risk, Probability, and Expected Utility Represent uncertainty with probability distributions; derive expected utility and certainty equivalents; understand risk aversion and downside risk. | 8 min read |
| 3 | Mean-Variance Portfolio Theory and the Efficient Frontier Derive minimum-variance portfolios and efficient frontiers; understand diversification, tangency portfolios, and estimation sensitivity. | 8 min read |
| 4 | CAPM, Beta, and Empirical Factor Models Derive CAPM implications; estimate beta and alpha; interpret factor models and distinguish systematic from idiosyncratic risk. | 8 min read |
| 5 | Arbitrage Pricing, Stochastic Discount Factors, and No-Arbitrage Use no-arbitrage restrictions to price payoffs; derive SDF relations; understand factor pricing and risk-premium covariance. | 8 min read |
| Part II · Fixed income and derivatives | ||
| 6 | Fixed-Income Securities, Bond Pricing, and Yield Curves Price fixed cash flows; distinguish coupon, spot, forward, and yield-to-maturity rates; understand credit spreads and discount curves. | 7 min read |
| 7 | Duration, Convexity, Immunization, and Term Structure Measure bond price sensitivity; derive duration and convexity approximations; understand immunization and term-structure models. | 8 min read |
| 8 | Forwards, Futures, Options, and Swaps Value derivative payoffs; derive put-call parity and binomial pricing; distinguish physical and risk-neutral probabilities; interpret Greeks and hedging. | 10 min read |
| Part III · Corporate finance and markets | ||
| 9 | Corporate Finance: Capital Budgeting and Project Valuation Value investment projects using incremental cash flows; calculate NPV and IRR; apply WACC consistently; evaluate uncertainty and real options. | 8 min read |
| 10 | Capital Structure, Leverage, and Payout Policy Understand Modigliani-Miller propositions; derive tax-shield effects; compare trade-off and pecking-order theories; analyze dividends and repurchases. | 8 min read |
| 11 | Market Efficiency, Information, Governance, and Event Studies Distinguish forms of market efficiency; design event studies; understand information asymmetry, governance, and limits to arbitrage. | 7 min read |
| Part IV · Banking and risk | ||
| 12 | Banking, Financial Intermediation, and Systemic Risk Analyze bank balance sheets, maturity transformation, capital and liquidity risk, and mechanisms of systemic instability. | 8 min read |
| 13 | Financial Risk Management: VaR, Expected Shortfall, and Stress Testing Quantify market and credit risk; estimate VaR and expected shortfall; understand tail dependence, model risk, and stress testing. | 8 min read |
| Part V · Behavioral and empirical finance | ||
| 14 | Behavioral Finance: Beliefs, Preferences, and Market Outcomes Understand behavioral departures from benchmark rational choice; connect psychological mechanisms to asset prices and trading behavior. | 8 min read |
| 15 | Empirical Finance and Financial Econometrics Estimate return and factor models; model conditional volatility; design event studies; evaluate predictability with careful data controls. | 9 min read |