List of handouts

List of handouts
1. The structure and performance of security markets
2. Numerical example in valuing zero-coupon bonds
3. Annuities and perpetuities
4. Continuous compounding: some basics
5. Computing effective annual rates
6. Holding period return and yield to maturity for zero-coupon bonds
7. Geometric average versus arithmetic average
8. Numerical examples of mean, standard deviation and correlation
9. Proofs of mean-variance formulae
10. Gains from diversification: two risky assets
11. Portfolio variance with many risky assets
12. Equity valuation formulae
13. Arbitrage with CATs and TIGRs
14. Numerical examples of coupon rate and yield to maturity
15. Calculating the holding period return on a coupon bond
16. Understanding the expectations hypothesis
17. Duration formulae and calculations
18. Option profit/payoffs on expiration: sample tables
19. The minimum value of a call option
20. Arbitrage example demonstrating put-call parity

Note: All handouts are required reading except for handout # 9, "Proofs of mean-variance formulae".

Last modified May 13 2007 1443 Eastern Time.