Attention SO1, our final (May 11th, 9am) is relocated as the following:

Wilson Hall 102: students w/last name beginning w/a-po

Wilson Hall 301: students w/last name beginning w/q-z

Details on our final

A sample final with solution is here.

Course Materials

Assignment 7

Previous Announcements

Attention SO2, our final (May 6th, 9am) is relocated to Barus and Holley 166.

May 4th: I am holding another extra office hour tomorrow (5th) from 1:30 to 2:30pm.

Our final is on May 11, 9am for SO1 (the morning class), at Wilson Hall 102. For SO2 (the afternoon class), the final is on May 6, 9am, at Barus and Holley 166. Make sure that you are going to the right exam for the class that you registered for.

April 20th: for tomorrow's class, please read the appendix of chapter 26 (26.6-26.9)

April 17th: assignment #7, the last assignment, is posted. It covers next week's lecture materials, and it's due on Wednesday, April 29th.

April 12th: the sample midterm is updated. The one I posted last week was actually the draft version of the midterm 2 given out in 2007. There are a couple mistakes in the answers. The actual exam given was shorter than this draft version. I will hold extra office hours on Monday from 1pm to 2:30pm.

April 10th: it is confirmed that section one (SO1) will have the midterm during class time at the Alumnae Auditorium.

April 9th: here is the sample midterm 2 with solutions. Please note that the materials covered in our midterm 2 may be different. The lecture notes covered by the second midterm are from 7 to 16, inclusive.

April 7th: Here is the answer key for HW6 Q3 (a-d). For SO1, what I did this morning on the whiteboard is all fine, except in part C when we calculated the expected rate of return for the tangency portfolio, I put down 0.09 instead of 0.099, which threw off the rest of the calculation. For the updated formula in step 2, page 3,lecture note 16, it is correct and identical to the one on the textbook used by Prof. Feldman. Please note that on that particular textbook, the notation is for excess return, i.e., E(r)-r_f.

Please note that my office hour is Friday between 12:30pm and 2:30pm.

To find out what formulas that you need to memorize for the midterm, and what formulas will be provided on the exam, click here.

April 8th: for tomorrow's class, please read chapter 26.1-26.3

April 6th: For Tuesday's class, please read textbook chapter 9.

April 2nd: assignment #6 is posted, it's due in class next Tuesday.

March 31st: for this week, the reading assignment is here. You can download the chapter through Prof. Welch's website: http://welch.econ.brown.edu/book/, under "Investments Chapters".

March 30th: Our second midterm is postponed to Tuesday April 14th. It will cover what we did after the first midterm, up to and include what we will cover this coming Thursday.

Assignment #5 is posted. It's due at the beginning of your conference after the spring break.

March 18th: For Thursday's class (19th), the reading assignment is chapter 8, including appendix 8.6-8.8.

March 13th: there is NO homework assignment for this week.

March 11th: lecture note 13 is posted for tomorrow. Reading assignments: chapter 5.6 and 5.8.

March 9th: lecture note 12 is posted for tomorrow. Reading assignments: chapter 5.3, 5.4, 5.6, and 5.8.

March 6th: the fourth assignment is posted, it's due next Tuesday in class.

March 3rd: For Thursday's class, lecture note 11 is posted. Reading assignments before the class: chapter 5.1, 5.3, 5.4, 5.6, and 5.7. I am not sure that we can cover 5.6 and 5.7. We'll see. Lecture note 9-10 is updated with answers.

Feb. 26th: assignment #3 is posted. It's due in class next Tuesday.

Feb. 23rd: A sample midterm and the answer key are posted.

Feb. 22nd: The answer key to assignment #2 is posted. Our first midterm is on Feb. 26th. It covers assignments 1 and 2, textbook chapters 7.2, 23.1(AtoF), and 2.1 to 2.4.

Feb 19th: Lecture note 7-8 is updated with answers. There is no homework this week.

Feb 12th: Homework #2 is posted. It's due next Thursday in class. The answer key for assignment #1 is also posted. Our first midterm is moved to Thursday the 26th. For SO2(1pm class), Zhizhao moved his office hours to Monday 5:30 to 7:30pm at the Blue Room.

Feb 11th: Please read chapter 2.1 to 2.4 for Thursday's class(2/12). Lecture note 7 is posted and lecture note 4-5 is updated with answers.

Feb 18th: for tomorrow's class, we'll cover what's left over from Chapter 2.1-2.4, finish ch2.5 and ch2.6, and aim to cover Ch3.1 and 3.2.

Feb 5th: For the multiple choice question regarding Eurodollars, please use websites like investorwords.com or google to find the right answer. Please skip #6. We didn't cover the entire topic in class so we'll work on this question in assignment #2.

Feb 4th: Assignment #1 is posted. Please also note that I updated lecture notes 2-3 to include answers to the three questions on the notes.

Feb 3rd: For the morning class, Tom will go over the effective taxable yield of a muni in our conferences tomorrow --- I was doing it quickly this morning.

Feb 2nd: For this week's classes, please read Chapter7.2 and 23.1 (A to F). I will ask about the current target and effective federal funds rates on Tuesday's class.

Jan 29th: We talked about U.S. government securities today in class. Here is the link to the relevant website: http://www.treasurydirect.gov/. Please explore this website to learn more about the Treasuries. On the right hand side of the webpage, there is a link to "upcoming auctions". Also don't forget to check the link to "Auction Results". Before our class next Tuesday, your task is to find the target and the effective rate for the federal funds rate, as of today(1/29/2009).