What's Covered

• The first 8 topics: Time value of money, bond valuation and bond risk, risk and return in the securities markets, optimal portfolio diversification and modern portfolio theory, equity valuation and international investment.
• Other topics will be deferred until the Final Exam: forwards, futures and swaps, options and option applications, and portfolio performance evaluation and managment.
• Good preparation would include the material in the textbook chapters, the lecture handouts, the worked-out problems in the textbook, and, of course, the self-test problems and quizzes.

What's Allowed

• One 1-page cribsheet, both sides, with formulas, etc
• A financial calculator (essential).

Grading

• While the goal will be to obtain the correct answers to the exam questions, partial credit will be accorded for employing the right approach despite computational errors.

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