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Financial Economics

Course Content

This course provides an introduction to finance.  In the first part of the course the emphasis is on time value of money (TMV) and its applications, including capital budgeting.  The second part of the course will be devoted to the fundamental theories of finance: Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM).

 

Course Materials

Students will be provided with a reader with exercises that will complement the lectures and copies of the lecture slides.

 

Reference Books

(with HEC Library call numbers)

Finance by Bodie & Merton available in English & French (BOD-5), and

Investments by Bodie, Kane & Marcus available in English (BOD-5-712).

 

Class Materials

CHECK THE Syllabus and schedule

 

Time Value of Money                Problem set 1        Quiz 1

Capital Budgeting                    Problem set 2        Quiz 2

Uncertainty                              Problem set 3

Portfolio Theory                       Problem set 4        Quiz 3

CAPM                                      Problem set 5        Quiz 4

 

Efficient frontier  (to run this file you need first to install the free-ware Wolfram CDF Player)

Market Portfolio: FT Global 500

Sample Quiz 1 from a past year

Sample Quiz 2 from a past year

Sample Quiz 3 from Prof Schmidt

Sample Quiz 4 from a past year

Additional problems on NPV

Additional problems on Portfolio Theory Data for the problem set

A previous year final exam with answers

Formulae Vade-mecum