ECON 435

From BluWiki

UVA Notes > ECON 435

[edit] Get slides - REMEMBER TO PRINT SLIDES OUT

• Click here to get slides

[edit] Corporate finance lecture notes

[edit] 9/23/2005

• ECON 435: Financial Ratios
• ECON 435: Present and future value
  • Includes calculations with compounding interest
• NOTE: Make sure you understand Quiz 4 on the slides
  • uses above calculations to calculate return on an $300 investment

[edit] 9/26/2005

• ECON 435: Effective annual rates
• ECON 435: Amortization rules
• ECON 435: Sample interest problem
• ECON 435: Bond features & pricing
• ECON 435: Bond ratings

[edit] 10/7/2005

• ECON 435: Bond features & pricing
• ECON 435: Bond ratings
• ECON 435: Inflation and interest rates
• ECON 435: Terms & forumlas to know for the test
• ECON 435: Stock valuation

[edit] 10/10/2005

• ECON 435: Common & Preferred Stock
• ECON 435: Net Present Value & Other Investment Criteria
• ECON 435: nothing here

[edit] 10/21/2005

I was absent this day...

• Big point:
  • Quantification of risk and return is a crucial aspet of finance. Value maximizing decisions require an understanding of risk & return.

Capital Market Efficiency

[edit] 10/24/2005

ECON 435: Capital market efficiency Efficient market hypothesis Actual capital markets are actually efficient. Therefore all transactions involving security markets are zero NPV transactions.

• Two situations where transaction is not non-zero NPV:
  • You have information the market doesn't have
    • By doing reserach
    • By being an insider
  • You engage in a non-rational transaction

• Three forms of market efficiency
  • Strong form efficiency
    • Security prices already reflect all information that exists, no insider trading!
  • Sem-strong form efficiency
    • Prices refelct all public information.
  • Weak-form efficiency
    • The prices at least refect past prices. Therefore, statistics have no value.

[edit] 11/10/2005

Took notes on ppt slides 13 & 15