The goal of this course is provide an introduction into the workings of financial markets. The course will discuss the basic role of financial markets, the types of financial assets and how they are traded. We will introduce a number of technical tools for valuing risk, pricing financial assets and creating portfolios. Finally, we will employ these insights to discuss issues of broader relevance for the macro economy, with special emphasis on the current financial crisis.

Required Textbook:

I will distribute a math handout in our first class to help you review some of the mathematical concepts and tools that will be used in class. I strongly recommend that you work through these on your own to refresh your math skills.

40 %  Financial news analysis presentation

~Material preparation 10 points

~Presentation and addressing questions 10 points

~ Reports 20 points
30 %  Midterm
40 %  Final exam

There will be no opportunities for extra credit.  If at any point during the semester you face circumstances which prevent you from attending lecture, making presentations and/or participating in quizzes or exams, please contact me as soon as possible to discuss ways to manage the situation.  There is little that can be done after an unsatisfactory grade has been assigned.

Students are expected to be prepared for each lecture by studying the textbook chapters as indicated below.  Furthermore, you are expected to follow our regular financial news discussion and analysis in class and online to connect the theoretical concepts that we are studying to what is going on in financial markets day-to-day.  Preparing all of these materials will help you to actively and effectively participate in classroom discussions.  This means regular class attendance is an expectation.  You will be responsible for all the preparatory materials in your problem sets, quizzes and exams.

One of the main goals of our class is to promote self-learning and problem solving and team work all vital skills for your future success.  To this goal, I will sign up a team of four to prepare a class project (approx. 30-40 min) on a specified topic. The class project will account for a considerate portion (40%) of your final score.

Nature of the project

Each team will be assigned to a different topic closely related to current economy and the class material.  You are expected to do independent research on the topic from various sources such as library publications, internet, and collect data if necessary.  The project last the whole course, however due to scheduling issues, presentations will be held on classes throughout the course. The teams will be assigned on the presentation time based on a random selection, and your presentation score will be given based on your presentation. Your final project includes a final report (in word document), and a revised power point presentation which should be turned in electronically on the last day of week 10. 

Team management

Team will be chosen to make each group to have students with various backgrounds to mix gender, school and your undergraduate major. Working with team is essential, so once the team is assigned, there should be no change in the team member.  And each team should figure out a way to manage their team to the best effect.  I will not interfere with your work load assignment or how you corporate with other members within the team. But I don’t allow free-riding which is you have to reach an agreement before hand on how to work on the project, if any member does not do their part while try to free ride on other members, you should make sure to report that to me (think of me as your CEO).

Requirement for final report

The final report should be in English.  All information cited should have a footnote to show the source (publication, book, or web address) which will allow me to verify and trace the authenticity.  The reports should be concise and well written; the maximum length is 15 pages, although you are allowed to put any charts or table in the appendix which does not count for pages.

Language and Dressing Code

Presentation and power point should also be in English, but to encourage class participation and motivate better communication, questions and answers could be given in Chinese.  I require the presentation team no matter speak or not to dress formally on the day of the presentation.  Violation will be considered as lack of proper business etiquette and presentation points will be deduct accordingly. 

I do not require turned in homework.  However, I will select a few problems on the text book each chapter as suggested problems.  You are welcome to do more if you need more practice.  The solution will be posted by my TA for the whole chapter.

There will be one midterm and one final exam.  The material covered by the final exam will be cumulative, but with special focus on the most recent materials.  If you fail to take an exam, you will receive a zero score, no exception will be made. 

You are responsible for all material in the relevant chapters of the textbook (see below), for the topics we discussed in our financial news analysis and for what were covered in my lectures. If you miss any lectures, please make sure that you copy the notes of one of your colleagues.

At the end of the semester, please let me know what you liked and what you disliked about this class by taking advantage of the University's course evaluation system.  I really appreciate your feedback – incorporating your suggestions will help me in updating the course for future generations of students.