E120, E130 or E131
Mishkin, Frederic and Stanley G. Eakins Financial Markets & Institutions , 5th edition.
Eaton, James W. and Frederic Mishkin, Online Readings for Financial Markets & Institutions
Malkiel, Burton G.,A Random Walk Down Wall Street, 1999, W.W. Norton & Co. (Ch. 8-10)
Cochrane, John H. (1999)
New facts in financeFederal Reserve Bank of Chicago,Economic PerspectivesCochrane, John H. (1999)
Portfolio advice for a multifactor worldFederal Reserve Bank of Chicago,Economic PerspectivesShiller, Robert J., Irrational Exuberance, Princeton University Press, March 2000 (Broadway Books, April 2001).
Siegel, Jeremy J., STOCKS FOR THE LONG RUN, 1998, McGraw-Hill
- Pop Quizzes will be given occasionally throughout the semester (5-6).
- Problem Sets will be assigned for most chapters. These will be spot graded, and answer keys will be provided online.
- The Midterm exam will be given on October 17, 2006.
- The Final Exam is comprehensive and will be given on Tuesday, December 12, 2006 from 9:45 to 11:45 am The final exam is given in the regular class room.
- The course grade will be assigned using +/- grading.
Pop Quizzes: (average after dropping lowest score)
10%
Problem Sets: (average after dropping lowest score)
15%
Midterm
35%
Final
40%
- I will make extensive use of the internet to distribute course materials, including old exams, answer keys, and assigned readings. Although I will attempt to notify you when major changes have been made to the web site, it is your responsibility to check the web site on a regular basis.
- Attendance is mandatory; no make up quizzes will be given.
- There will be no make up exams. Only medical emergencies are valid reasons for missing exams, in which case the weight of the missed exam will be allocated to any remaining exams.
- Exams must be taken on the assigned dates. Please note the dates listed above for both the midterm and the final.
- Assignments will not be accepted late (after the start of class on its due date). You may drop one problems set and one quiz grade from your average.
- All of the assigned readings will not be covered in detail in class. You are responsible for all of the material in these readings. Assigned readings for each class meeting should be read prior to class and then carefully reviewed after class.
- Class will be conducted in an open discussion/lecture style. Your participation is expected, and I will frequently call on students to discuss important topics.
- I will always be available to you during my office hours, by email, phone and by special appointment. I encourage you to make use of my time. Please do not wait until the day of an exam to ask for my assistance.
Course ScheduleBelow is a plan for the course, including exam dates, a lecture schedule (subject to change), and required readings. I will assign additional readings to accompany some chapters. Although some of these readings will not be covered in class, they are all required. In addition, any class handouts are required reading don't miss class.
Date
Begin Discussing:
Chapter
August
22
Introduction
Why Study Financial Markets and Institutions?
1
24
Overview of the Financial System
29
Fundamentals of Financial Markets
What Do Interest Rates Mean and What Is Their Role in Valuation?
3September
5
Why Do Interest Rates Change
14
How Do Risk and Term Structure Affect Interest Rates?
28
Financial Markets
The Money & Bond Markets
9,10October
3
The Foreign Exchange Market and the International Financial System
October 17 Midterm 1-5,9,10,13 19
The Stock Market, Efficient Markets Theory and Models of Asset Pricing
Random Walk Down Wallstreet, mimeo will be on reserve in Sinclair Library
4 App. 1
RWDW Chpts 8-10November
2
The Fundamentals of Financial Institutions
Why Do Financial Institutions Exist?
157 Election Day No Class 21
Banking and the Management of Financial Institutions23
Thanksgiving No Class
November
28
Risk Management in Financial Institutions
24 December
5
Hedging with Financial Derivatives
25 December
12
Final Exam 9:45-11:45 AM in REGULAR CLASS ROOM