NOTE: SYLLABUS REVISED 9/22/98
Revisions include changes in recommended reading assignments.
NOTE: Recommended readings are listed as:
BKM = Bodie, Kane and Marcus, Investments, 4th edition
bkm = Bodie, Kane and Marcus, Essentials of Investments
Thursday, September 10: Introduction and Present Value
Required Reading:
- BM 1, 2, 3
- Lecture Notes: Topic I
Tuesday, September 15: Present Value
Required Reading:
- BM 3
- Lecture Notes: Topic I
Thursday, September 17: NPV vs. Other Rules
Required Reading:
- BM 5
- Lecture Notes: Topic 2
Tuesday, September 22: Fixed Income Securities (1): Default Free Bonds: Pricing
Required Reading:
- BM 3
- Lecture Notes: Topic 3
Recommended Reading:
- BKM 14, 15 (or bkm 10)
Thursday, September 24: Fixed Income Securities (2): Default Free Bonds: Risk and Risk Management
Problem Set 1 due
- You will be asked to hand in a 4 x 6 index card that includes your name, a picture
of yourself, the name of the department/program that you are in, and any other information
you feel relevant. Since there are over 150 students in the class this will help us to get
to know you better.
Required Reading:
- BM 3
- Lecture Notes: Topic 4
Recommended Reading:
- BKM 14, 15, 16 (or bkm 11)
- Class handout 1
Tuesday, September 29: Fixed Income Securities (3): Other Fixed Income Securities
Required Reading:
- BM 23, 24
- Lecture Notes: Topic 5
Recommended Reading:
- BKM 14, 15 (or bkm 10)
Thursday, October 1: Review Session
Problem Set 2 due
Tuesday, October 6: Common Stocks
Required Reading:
- BM 4
- Lecture Notes: Topic 6
Recommended Reading:
- BKM 18 (or bkm 13)
- Class handout 2
Thursday, October 8: MIDTERM 1
- The location of the exam is the top floor of Walker Memorial from 8:00 AM - 10:00 AM
Tuesday, October 13: No class. "Gromb Day"
Thursday, October 15: Options 1: Introduction
Problem Set 3 due
Required Reading:
- BM 20
- Lecture Notes: Topic 7
Recommended Reading:
- BKM 20 (or bkm 16)
Tuesday, October 20: Options 2: Pricing
Required Reading:
- BM 20
- Lecture Notes: Topic 8
Recommended Reading:
- BKM 21 (or bkm 17)
- Class handout 3 (part 1)
Optional Reading: Forwards and Futures
This is for interested students and will not be covered in class and will not be required
for exams.
- BKM 22, 23 (or bkm 18)
- Lecture Notes: Topic 9: Forwards and Futures
- Class handout 3 (part 2)
Thursday, October 22: Risk and Return
Problem Set 4 due
Required Reading:
- BM 7
- Lecture Notes: Topic 10
Recommended Reading:
- BKM 6, 7 (or bkm 6)
Tuesday, October 27: Optimal Portfolio Theory
Required Reading:
- BM 8
- Lecture Notes: Topic 11
Recommended Reading:
- BKM 8 (or bkm 7)
Thursday, October 29: Capital Asset Pricing Model (CAPM)
Problem Set 5 due
Required Reading:
- BM 8
- Lecture Notes: Topic 12
Recommended Reading:
- BKM 9 (or bkm 8)
Tuesday, November 3: Capital Asset Pricing Model (CAPM)
Required Reading:
- BM 8
- Lecture Notes: Topic 12
Recommended Reading:
- BKM 9 (or bkm 8)
Thursday, November 5: Review Session
Problem Set 6 due
Optional Reading: APT
This is for interested students and will not be covered in class and will not be required
for exams.
- BM 8
- BKM 10, 11 (or bkm 8)
- Lecture Note: Topic 13
Tuesday, November 10: MIDTERM 2
- The location of the exam is the top floor of Walker Memorial from 8:00 AM - 10:00 AM
Thursday, November 12: Efficient Markets and Practical Issues in Capital Budgeting
Required Reading:
- BM 13, 6, 9, 21
- Lecture Notes: Topic 14 and Topic 15
Recommended Reading:
- BKM 12 (or bkm 9)
Optional Reading:
- BM 10, 11, 12
- Class handout 4
Tuesday, November 17: Financing Policy
Required Reading:
- BM 17, 18
- Lecture Notes: Topic 16
Recommended Reading:
- BM 14, 15
- Class handout 5
Thursday, November 19: Interactions Between Investment and Financing Policies
Problem Set 7 due
Required Reading:
- BM 9, 19
- Lecture Notes: Topic 17
Tuesday, November 24: Applications
Required Reading:
- BM 25
Tuesday, December 1: Payout Policy and Corporate Risk Management
Problem Set 8 due
Required Reading:
- BM 16, 21
- Lecture Notes: Topic 18 and Topic 19
Recommended Reading:
- Class handout 6
Thursday, December 3: UST (Case study)
Problem Set 9 due
Required Reading:
- UST Case Study (may be purchased at Copy Tech, basement of E52)
Tuesday, December 8: American Chemical (Case study)
Required Reading:
- American Chemical Case Study (may be purchased at Copy Tech, basement of E52)
Thursday, December 10: Review Session
* The final exam for 15.415 is MONDAY, DECEMBER 14th from 1:30 - 4:30 in du Pont. Please note that this LOCATION IS DIFFERENT than what is mentioned on the MIT Final Exam Schedule.*
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