This course uses an online presentation format. The following link explains how to use the slides.
Calculating returns using different methods; understanding the historical relationship between risk and return; basic statistics
Defining the investor policy statement; understanding the many broker/advisor options; executing trades using margin; shorting stocks
A brief overview of interest-bearing assets, equities, and derivatives. Future lectures and chapters will be dedicated to each one of these topics.
A discussion of mutual funds, their strategies, and their fees. Hedge funds and exchange traded funds are also discussed.
The functioning of the equity market, calculating index returns with different weighting schemes, and the various trade types available to investors.
Methods for estimating the value of a firm's common stock. Discounted cash flows, dividend discount model, free cash flow model, residual income model, etc.
A brief overview and definition of derivatives. Forward contracts: an introduction to the structure, attributes, and payoffs of forward contracts.
A summary of the differences between futures contracts and forward contracts, as well as the process of daily settlement. Hedging using futures. Arbitrage and the pricing of futures contracts in a no-arbitrage setting.
An overview of the types of options as well as their payoff and profit curves. Option premium decomposition and "moneyness". The relationship between the premium and strike prices and time to expiration. Option strategies.
An overview of interest rates, money market and fixed income securities, rate quotes, and inflation adjustments.
Basic bond concepts and pricing, including flat and full prices. Risks associated with investing in bonds.