B40.3331 Readings
Additional Readings for B40.3331

The primary set of additional readings and problems provided by the instructor for this course can be linked to in the B40.3331 Readings and Coursepack page. Students should first focus their readings on material from this Coursepack. Additional readings may be linked to below. Some of these readings may be particularly useful for students who are experiencing difficulties with the lectures and Coursepack. In addition, there are more exercises in the B40.3331 Additional Problems page . Students who are interested in more advanced or other readings in finance not necessarily related to this course can link to Professor Teall's recommended readings . There may also be a few readings on this recommended list that would be useful for this course. Readings will be added here from time-to-time.

The material here is provided in *.pdf format which can be downloaded by selecting the appropriate links. After downloading, you will need to access this material with Adobe Acrobat Reader . If you do not have this program, it can be downloaded without cost by linking to Adobe's site , selecting the "Get Acrobat Reader link" and following instructions. Feel free to report any difficulties to or obtain any needed assistance from  John Teall .

Check this page regularly because more materials will be added as the term progresses.

Links to Additional Readings and Problems
Perhaps the most important set of readings for this course is from the Readings and Coursepack . Exercises and solutions follow each chapter. Additional readings are suggested here. Exercises and problems in the Elementary Mathematics Review and FIN 396G the FIN 301 coursepacks are at the end of each chapter. You can link to the solutions to exercises in the Elementary Mathematics Review .  See some additional links at the bottom of this page.

I. INTRODUCTION AND REVIEW OF PREREQUISITE TOPICS
All students enrolled in B40.3331 should ensure that they have adequate preparation in introductory finance and mathematics. Reviews are available for the course as follows

Review of prerequisite very basic quantitative material: 

2   Review of Elementary Mathematics: Functions and Operations  
    2.A  Introduction 
    2.B  Variables, Equations and Inequalities 
    2.C  Exponents 
          Application 2.1  Interest and Future Value 
    2.D  Order of Arithmetic Operations and Rules of Algebra 
          Application 2.2  Initial Deposit Amounts 
    2.E The Number e 
    2.F  Logarithms 
          Application 2.3  Time Needed to Double One’s Money 
    2.G  Subscripts 
    2.H  Summations 
          Application 2.4  Mean Values 
    2.I Double Summations 
    2.J   Products 
          Application 2.5  Geometric Mean Return 
          Application 2.6  The Term Structure of Interest Rates 
    2.K  Factorial Products 
          Application 2.7  Deriving the Number e 
    2.L  Permutations and Combinations 
          Exercises 
 Appendix 2.A An Introduction to the Excel Spreadsheet
3   Review of Elementary Mathematics: Algebra and Solving Equations  
    3.A  Algebraic Manipulations 
          Application 3.1  Purchase Power Parity 
          Application 3.2  Finding Break-Even Production Levels 
          Application 3.3  Spot and Forward Interest Rates 
    3.B The Quadratic Formula 
          Application 3.4  Finding Breakeven Production Levels 
          Application 3.5  Finding the Perfectly Hedged Portfolio 
    3.C  Solving Systems of Equations Containing Multiple Variables 
          Application 3.6  Pricing Factors 
          Application 3.7  External Financing Needs 
    3.D  Geometric Expansions 
          Application 3.8  Money Multipliers 
    3.E  Functions and Graphs 
          Application 3.9  Utility of Wealth 
          Exercises 
 Appendix 3.A  Solving Systems of Equations on a Spreadsheet

The following is review material from an introductory finance course:

4   Time Value of Money                                         
    4.A  Introduction and Future Value                          
    4.B  Simple Interest                                        
    4.C  Compound Interest                                      
    4.D  Fractional Period Compounding of Interest              
    Application 4.1 APY and Bank Account Comparisons
    4.E  Continuous Compounding of Interest                     
    4.F Annuity Future Values
    Application 4.2  Planning for Retirement
    4.G  Discounting and Present Value
    4.H   Present Value of a Series of Cash Flows               
    4.I  Annuity Present Values
    Application 4.3  Planning for Retirement, Part II
    Application 4.4 Valuing a Bond
    4.J Amortization
    Application 4.5  Determining the Mortgage Payment
    4.K  Perpetuity Models
    4.L Single Stage Growth Models
    Application 4.6  Stock Valuation Models
     4.M Multiple Stage Growth Models
    Exercises
    Appendix 4.A Time Value Spreadsheet Applications               

5   Return, Risk and Co-movement                                 
    5.A  Return on Investment                                   
          Application 5.1  Fund Performance                          
    5.B  Geometric Mean Return on Investment                    
    Application 5.2  Fund Performance, Part II
    5.C  Internal Rate of Return                                
    5.D  Bond Yields                                            
    5.E  Introduction to Risk                                   
    5.F  Expected Return
    5.G Variance and Standard Deviation
    5.H Historical Variance and Standard Deviation
    5.I   Covariance
    5.J  Coefficient of Correlation and Coefficient of Determination
    Exercises
    Appendix 5.A Return and Risk Spreadsheet Applications

6   Elementary Portfolio Mathematics                             
    6.A  Introduction to Portfolio Analysis                      
    6.B  Portfolio Return                                        
    6.C  Portfolio Variance                                      
    6.D Diversification and Efficiency
    6.E The Market Portfolio and Beta
    6.F  Deriving the Portfolio Variance Expression
          Exercises

II. Additional Readings and Spreadsheets

     1.   The Monte Hall Problem Simulation

    2.    The Simple Option to Build

    3.    Additional Problems
 
B40.3331: Equity Instruments and Markets News
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updated 07/30/07