Econ 133: Security Markets and Financial Institutions

Fall 2012

Last updated: 10/5/12

 

Instructor:       Kai Pommerenke, Ph.D.

Contact:           kpommere@ucsc.edu and (831) 459-3916

Office hours:  M 11:00 a.m. – 1:00 p.m. and by appointment, 429 E2

Class meets:     MWF 8:00 a.m. – 9:10 a.m., Steven Academy 150

Website:          http://people.ucsc.edu/~kpommere/econ133 and Piazza

 

News

First problem set is due on Monday, Oct. 8. The link to the problem set is now available through Piazza.

All subsequent announcements will be made on Piazza.

 

Documents

Syllabus

 

Required Readings

á       Essentials of Investments, (any edition), by Bodie, Kane and Marcus (BKM); McGraw-Hill

á       William Sharpe (WS), "The arithmetic of active management," Financial Analysts Journal (Jan. 1991), 7-9

á       Current economic and financial news from The NYT, Reuters, The Economist, etc.

á       Articles listed below or on Piazza

 

Schedule

Week

Start

Topic

Readings

1

10/1

Intro, TVoM, risk and return, Excel

BKM 1, 5, TVoM, Playing with fire, Keeping it real, The LIBOR scandal

2

10/8

Portfolio management

BKM 6, Repressed memories

3

10/15

CAPM and APT

BKM 7

4

10/22

Efficient markets, review      (midterm on F)

BKM 8, WS, EMH

5

10/29

Financial assets and institutions, trading

BKM 2-4, 20, VSE, HFT, ETFs, HF, PE

6

11/5

Bonds, securitization

BKM 10, securitization, CDOs, sovereign bonds, corporate borrowing

7

11/12

Stocks                                 (no class on M)

BKM 13, Taking stock, equity markets

8

11/19

Futures and options              (no class on F)

BKM 17, 15-16

9

11/26

Personal finance

BKM 21, Promise now, Not so expert

10

12/3

Financial crisis, review

Financial crisis