Research & Teaching Pages of Patrick Toche, keywords: "economics", "toche", "patrick toche"

Fall 2016 -- LBA221 -- Investment & Portfolio Management

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  • Monday 5 September 2016

  • Wednesday 7 September
    • Topic: Money Markets
      • You are expected to understand the nature of money markets, and be able to discuss Treasury bills, certificates of deposit, commercial paper, eurodollars, bankers' acceptances, repos and reverses.

  • Wednesday 14 September
    • Topic: Bonds Markets
      • You are expected to understand the nature of bonds markets, and to be able to discuss the difference between notes and bonds, inflation-protected bonds, federal agency bonds, international bonds, municipal bonds, corporate bonds, mortgages-backed securities.

  • Wednesday 21 September
    • Topic: Bonds Markets (Continued)

  • Wednesday 28 September
    • Topic: Mortgage-Backed Securities
      • You are expected to understand the basic features of a Collateralized Mortgage Obligation (CMO), Collateralized Debt Obligation (CDO), Mortgage-Backed Securities) MBS.

  • Wednesday 5 October
    • No Class: Public Holiday (China National Holidays).

  • Wednesday 12 October
    • Midterm #1 Today
      • Topic: Money Markets and Bonds Markets.

  • Wednesday 19 October
    • Topic: Stock Markets
      • You are expected to understand the nature of stock markets, and to be able to discuss the difference between common stocks, preferred stocks, depository receipts, and to know about stock indices.

  • Wednesday 26 October
    • Topic: Margin Purchases
      • Initial margin
      • Maintenance margin
      • Leverage
      • Margin calls

  • Wednesday 2 November
    • No classes: All Souls' Day

  • Wednesday 9 November
    • Topic: Short Selling
      • Initial margin and Maintenance margin for short positions
      • Covering a short position
      • Margin calls on short positions
    • Quiz #1 Today
      • Topic: Stocks

  • Wednesday 16 November
    • Topic: Short Selling (continued)
    • Quiz #2 Today
      • Topic: Margin Purchases

  • Wednesday 23 November
    • Topic: Risk & Diversification
      • The Risk Premium
      • Equity & Bond returns
      • Sharpe Ratio

  • Wednesday 30 November
    • Topic: Risk & Diversification (Continued)
    • Quiz #3 Today
      • Topic: Short Sales

  • Wednesday 7 December
    • Midterm #2 Today
      • Topic: Margin Purchases, Short Sales, and Rates of Return

  • Wednesday 14 December
    • Expected grades (before make-ups) will be discussed today.
    • Make-Up Tests Today (Midterms & Quizzes)
      • Topic: Money, Bonds, Stocks, Derivatives, Margin Purchases, Short Sales, Margin Calls, Rates of Return, Upside Potential and Downside Risk.

Timetable

  • Wednesday 3:30am-6:15pm  :  Nape 3, 9th floor, Classroom D-15

Syllabus

Reading

  • The main references for this course are the relevant chapters from the following text:
  • Zvi Bodie, Alex Kane, Alan J. Marcus. Essentials of Investment. McGraw-Hill/Irwin. 9th edition, 2012 or later.
  • Refer to the class syllabus for details.

Materials

  • Handouts will be posted here as they become available. Both slides and companion handouts are available. The handouts are intented for printing. The slides are intended for online viewing. There are some (usually small) differences between the slides and the handout. The handouts may be revised in the course of the semester to fix typos, update data, add or remove material. Some handouts may not yet be available on the website (usually the case if I plan a thorough revision or update).

  • The lectures will be selected from the topics below.
  • [Slides]    [Handout]    Topic :  Financial Crises
  • [Slides]    [Handout]    Topic :  Financial Crises: The Great Depression
  • [Slides]    [Handout]    Topic :  Securities & Financial Instruments: Money Markets
  • [Slides]    [Handout]    Topic :  Securities & Financial Instruments: Bond Markets
  • [Slides]    [Handout]    Topic :  Securities & Financial Instruments: Stock Markets
  • [Slides]    [Handout]    Topic :  Securities & Financial Instruments: Derivatives
  • [Slides]    [Handout]    Topic :  Trading Securities: Mechanisms & Regulation
  • [Slides]    [Handout]    Topic :  Trading Securities: Buying on Margin
  • [Slides]    [Handout]    Topic :  Trading Securities: Short Selling
  • [Slides]    [Handout]    Topic :  Trading Securities: Computing Returns
  • [Slides]    [Handout]    Topic :  Trading Securities: Risk
  • [Slides]    [Handout]    Topic :  Trading Securities: Diversification
  • [Slides]    [Handout]    Topic :  Financial Markets: Banking

  • A selection of short notes are available:
  • [PDF]    Topic :  Securitization
  • [XLS]    Topic :  Margin Purchases Worksheet
  • [PDF]    Topic :  Margin Purchases Worksheet Screenshot
  • [XLS]    Topic :  Short Sales Worksheet
  • [PDF]    Topic :  Short Sales Worksheet Screenshot
  • [XLS]    Topic :  Compounding Worksheet
  • [PDF]    Topic :  Compounding
  • [PDF]    Topic :  Growth Rates Averages
  • [PDF]    Topic :  Growth Rates Comparisons
  • [PDF]    Topic :  Growth Rates Tricks

  • A selection of problems with model answers are available:
  • [Questions]    [Answers]    Topic :  Financial Crisis
  • [Questions]    [Answers]    Topic :  Money
  • [Questions]    [Answers]    Topic :  Bonds
  • [Questions]    [Answers]    Topic :  Stocks
  • [Questions]    [Answers]    Topic :  Securities
  • [Questions]    [Answers]    Topic :  Margin Purchases
  • [Questions]    [Answers]    Topic :  Short Selling

  • New Slides and Handouts could be added. Please check back later.

  • The complete list of examinable topics will be given at the end of the semester. Class notes are usually provided in portable document format, pdf. They are not available in any other format.

Grades