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http://www.econ.ucdavis.edu/faculty/bdeblas/econ134s06/index.html
Lectures: MWF 3:10-4pm in 119 Wellman Hall
Discussion Sections: M 7:10-8pm and 8:10-9pm 233 Wellman Hall
Practice problems Typos corrected
Some of the forlumas we have seen in class
Office hours schedule from Monday 06/12/06 to Thursday 06/15/06
| Monday 06/12/06: | Office hours CANCELLED |
| Tuesday 06/13/06: | Office hours: 11-13h and 16-18h |
| Wednesday 06/14/06: | Office hours: 13-14h |
Midterm exam: Friday, May 12, in class. Answer keys:Version 1 Version 2
Exercises to practice for the midterm
This practice is for you, you don't need to hand it in. This is NOT meant to indicate the format of the midterm exam, but to give you some practice with some basic questions that you should handle easily
Week 1 (Mar. 27-31):
(W) Mar. 29: Introduction. Chapter 4 in book, Section 4.1: future value.
(F) Mar. 31: Cesar Chavez Day.
Week 2 (Apr. 3-7):
(M) Apr. 3, 06: Chapter 4, sections 4.1 and 4.2: present value and net present value, one period and multiperiod cases.
(W) Apr. 5, 06: Chapter 4, section 4.3: compounding periods, stated annual interest rate, effective annual interest rate, continuous compounding.
(F) Apr. 7, 06: Chapter 4, section 4.4: perpetuities and annuities.
Week 3 (Apr. 10-14):
(M) Apr. 10, 06: Chapter 4, appendix on first principles of finance.
(W) Apr. 12, 06: Chapter 4, finished appendix on first principles of finance.
(F) Apr. 14, 06: Chapter 5, sections 5.1, 5.2, started 5.3
Week 4 (Apr. 17-21):
(M) Apr. 17, 06: Chapter 5, finished section 5.3, started 5.4
(W) Apr. 19, 06: Chapter 5, finished 5.4. Growing perpetuity and growth annuity (Chapter 4)
(F) Apr. 21, 06: Chapter 5, 5.5 & Exercises.
Week 5 (Apr. 24-28):
(M) Apr. 24, 06: Chapter 5, section 5.6
(W) Apr. 26, 06: Chapter 5, sections 5.7, 5.8, 5.9
(F) Apr. 28, 06: Chapter 5, started Appendix
Week 6 (May 1-5):
(M) May 1, 06: Chapter 5, Appendix: spot and forward rates
(W) May 3, 06: Chapter 5, finished Appendix. Exercise.
(F) May 5, 06: Review exercises.
Week 7 (May 8-12):
(M) May 8, 06: Chapter 6, sections 1,2,5,6,8 covered briefly
(W) May 10, 06: Chapter 9.
(F) May 12, 06: Midterm: lessons 1, 2 and 3 (Chapters 4 to 6 in book).
Week 8 (May 15-19):
(M) May 15, 06: Chapter 10. Risk and risk aversion. Portfolio risk. Statistics review (Handout)
(W) May 17, 06: Statistics review. Portfolio of one risky asset and a riskless asset. Exercise 1 (Handout).
(F) May 19, 06: Finished portfolio risky-riskless assets. Exercise 1 (Handout).
Week 9 (May 22-26):
(M) May 22, 06: Portfolio of two risky assets.
(W) May 24, 06: Riskless borrowing and lending.
(F) May 26, 06: Optimal portfolio of risky assets. Started "beta".
Week 10 (May 29 - June 2):
(M) May 29, 06: Memorial Day
(W) May 31, 06: Finish "beta". Start CAPM
(F) June 2, 06: Finished CAPM.
Week 11 (June 5 - June 7):
(M) June 5, 06: Finish Chapter 10.
(W) June 7, 06: Review class (Last class).
Lesson 2
Example of NPVGO model(1)
Example of NPVGO model(2)
Appendix
Lesson 5 Part I
Part II
Statistics review
Exercise 1
Minimum variance portfolio
Problem set 2 due on Monday, April 17
Solutions PS2
Problem set 3 due on Monday, April 24 in the Discussion Section
Solutions PS3 Correction on solutions to 5.11(d) in Problem Set 3 (Apr. 27, 2006)
Problem set 4 due on Monday, May 1 in the Discussion Section
Solutions PS4
Problem set 5 due on Monday, May 8 in the Discussion Section
Solutions PS5
No problem set due on Monday, May 15.
Problem set 6 due on Monday, May 22 in the Discussion Section
Solutions PS6
Problem set 7 due on Wednesday, May 31 in the Discussion Section
Solutions PS7
Problem set 8
This problem set will NOT be graded and you DO NOT HAVE TO TURN IT IN, but YOU NEED TO DO IF BEFORE THE FINAL EXAM
Solutions PS8
*A better beta, The Economist (Mar 25, 1999)
*Shared values, The Economist (Dec 2, 1999)
*In praise of common sense, The Economist (June 20, 2002)
The sound of silence, The Economist (Apr 27, 2006)
*The long and the short of it, The Economist (Jan 5, 2006)
*A working model. Is the world experiencing excess saving or excess liquidity, The Economist (Aug 11, 2005)
*Down but not out. Can yields fall further? The Economist (Jun 2. 2005)
Admiring those shapely curves, The Economist (Apr 2, 1998)
Traffic lights on the blink? Capital markets are hindering, not helping, global economic adjustment, The Economist (Aug 18, 2005)
'The Foresight Saga,' The Economist (Dec 16, 1999)
'Shares drop as commodity prices stoke inflation fears,' The New York Times (Apr 12, 2006)
'Shares soar as Fed minutes hint at end to rising rates,' The New York Times (Apr 19, 2006)
'Fed signals policy shift on rates,' The New York Times (Apr 19, 2006)
Wall Street Journal: Free data
Bureau of the Public Debt, US Department of the Treasury.
Story of the Yield curve (Smartmoney.com)