Sorry for the late notice, but I have determined that we’ll need to devote most if not all of tomorrow’s class meeting to completing the capital market theory topic. Consequently, I have pushed the due date for problem set 7 and the assigned readings for the derivatives pricing topic back to Tuesday, October 23rd. These changes are reflected on the course website.

# Category Archives: Announcements

# Change in scheduled office hours for the remainder of the semester

Starting this week through the end of the semester, my office hours will be from 3:30-4:30 p.m. TR instead of the previously scheduled time of 9:30-10:30 a.m. TR. If that is not a convenient time for you, I am available during regular business hours throughout the week by phone or text at 254-307-1317 and by email at James_Garven@baylor.edu.

# The solutions for problem set 6…

… are available at http://fin4335.garven.com/fall2018/ps6solutions.

# Change in Thursday, 10/10 office hour

I have rescheduled my Thursday, 10/10 office hour (at Foster 320.39) starting at 3:20 p.m. instead of 9:30 a.m.

# Adverse Selection Class Problem and Solutions (from our October 4th class meeting)

Here’s the link to the Adverse Selection Class Problem that we worked on during our October 4th class meeting:

http://fin4335.garven.com/fall2018/Adverse_Selection_Dynamics_Numerical_Example

And here’s the link to the solutions for this class problem:

http://fin4335.garven.com/fall2018/Adverse_Selection_Dynamics_Numerical_Example__Solutions_

The spreadsheet which I used to produce the solutions document is available at http://fin4335.garven.com/fall2018/Dynamic%20adverse%20selection%20numerical%20example.xlsx.

# Friendly reminder – Michael Munger extra credit opportunity tomorrow – 4-5:15 in Foster 250

Tomorrow, you can earn extra credit by attending and reporting on Dr. Michael Munger‘s lecture entitled “Tomorrow 3.0: Thriving in the the New Transaction Costs Economy” from 4-5:15 pm in Foster 250:

If you decide to take advantage of this opportunity, I will use the grade you earn to replace your lowest quiz grade in Finance 4335 (assuming that your grade on the extra credit is higher than your lowest quiz grade). The report should be in the form of a 1-2 page executive summary in which you provide a critical analysis of Dr. Munger’s lecture. In order to receive credit, the report must be submitted via email to risk@garven.com in either Word or PDF format by no later than Monday, October 15 at 5 p.m.

# Grades report for Finance 4335, circa October 10, 2018

Earlier today, I updated Canvas to reflect course, attendance, quiz, problem set and exam grades for the 71 students who are currently enrolled in both sections of Finance 4335. Here are the descriptive statistics for these grades.

Course Grade | Attendance | Quizzes | Problem Sets | Midterm Exam 1 | |

Mean | 84.22 | 95.21 | 70.90 | 86.04 | 83.56 |

Standard Deviation | 11.55 | 6.39 | 13.82 | 12.61 | 20.47 |

Minimum | 48.83 | 73.33 | 26.00 | 39.33 | 0.00 |

25th percentile | 81.17 | 93.33 | 60.50 | 81.29 | 80.50 |

50th percentile | 87.72 | 100.00 | 72.00 | 89.42 | 92.00 |

75th percentile | 91.26 | 100.00 | 82.00 | 94.75 | 96.00 |

Maximum | 98.83 | 100.00 | 95.00 | 100.00 | 100.00 |

Let me explain next how I calculated the “Course Grade”. In the syllabus, the final (end-of-semester) course numeric grade calculation is given as

**Final Course Numeric Grade** = .10(Class Attendance) + .10(Quizzes) + .20(Problem Sets) + Max{.20(Midterm Exam 1) + .20(Midterm Exam 2) + .20(Final Exam), .20(Midterm Exam 1) + .40(Final Exam), .20(Midterm Exam 2) + .40(Final Exam)}

At the end of this semester, I will assign letter grades based upon the following schedule (which also appears in the course syllabus):

**Final Course Letter Grade.** The final course letter grade will be based upon the following schedule of final course numeric grades:

A | 93-100% | C | 73-77% |

A- | 90-93% | C- | 70-73% |

B+ | 87-90% | D+ | 67-70% |

B | 83-87% | D | 63-67% |

B- | 80-83% | D- | 60-63% |

C+ | 77-80% | F | <60% |

Since we are halfway through the semester, the equation for the Mid-Semester Course Numeric Grade which now appears in Canvas is calculated as :

**Mid-Semester Course Numeric Grade** =(.10(Class Attendance) + .10(Quizzes) + .20(Problem Sets) + .20(Midterm Exam 1)/.6

Keep in mind that you don’t actually receive a letter grade until the end of the semester. However, in the meantime, this calculation at least provides a clear indication of how everyone is doing overall so far.

# Change in today’s office hour

I have rescheduled today’s office hour (at Foster 320.39) from 3:30-4:30 instead of 9:30-10:30.

# Solutions for today’s Moral Hazard Class Problem…

… are available at the link provided below. I highly recommend that you review these solutions, and also try using the spreadsheet located at http://fin4335.garven.com/execcomp.xls which validates the results summarized in this document.

# Spring 2019 Hands-on Large-Cap Investment Course: Practicum in Portfolio Management

For printable PDF version of this announcement, click on the above image or go to http://risk.garven.com/wp-content/uploads/2018/10/Announce-Practicum-for-Spring-2019-class.pdf.