ECON 138 Summer 2010
Lecture

Instructor: Vinci Chow
Office Hours: Tuesday and Wednesday 4-5pm in 608-3 Evans

Handouts:

Lecture 1: Syllabus
Choice under Risk
Lecture 2: Static Portfolio Optimization
Lecture 3: Multiple Assets: Two-Fund Spanning
Lecture 4: Captial Asset Pricing Model
Lecture 5: Explaining CAPM Violations
Lecture 6: Equity Premium Puzzle and Prospect Theory
Lecture 7: Applications of Prospect Theory
Reference-Dependence Preferences: Example
Lecture 8: Ambiguity Aversion
Lecture 9: Fixed-Income Securities
Hyerbolic Discounting
Lecture 10: Hyperbolic Discounting
Lecture 11: Disposition Effect, Projection Bias
Lecture 12: Forwards, Futures and Options
Lecture 13: Binomial Option-Pricing and Black-Scholes
Lecture 14: Noise Traders (with detailed derivation)
Lecture 15: Modigliani-Miller Theorem
Lecture 16: Violations of M-M, Tax, Empire Building
Lecture 17: Principle-Agent Problem and Financing Constraint
Lecture 18: Repeated Interaction in Principle-Agent Problem
Lecture 19: Using Stata
Lecture 20: Overconfidence

Problem Sets:

Problem Set 1: Questions
Problem Set 2: Questions
Problem Set 3: Questions
Problem Set 4: Questions

Exams:

Midterm: Questions Solutions
Final: Questions Solutions