Moral Hazard and Adverse Selection Class Problem Videos

Finance 4335 will not meet in person on Thursday, March 21, due to ongoing health-related issues in my family.  For Thursday, I am cycling back to the asymmetric information topic and asynchronously presenting, in two separate videos, class problems pertaining to moral hazard and adverse selection. As in past asynchronous lectures, class participation credit will be awarded to students who write and upload a synopsis to Canvas covering both videos; the deadline for which is Friday, March 22, by 5 pm.

On Thursday, March 21, I plan to be available for office hours via Zoom from 3:30-5 if any students would like to come by.

Link for the Moral Hazard Class Problem Video: https://mediaspace.baylor.edu/media/Moral+Hazard+Class+Problem/1_egz1sqdn

Link for the Adverse Selection Class Problem Video: https://mediaspace.baylor.edu/media/Dynamic+Adverse+Selection+Class+Problem/1_kcxltiml

Capital Markets Theory asynchronous lecture

Finance 4335 will not meet in person tomorrow, Tuesday, March 19, due to ongoing health-related issues in my family.  Therefore, tomorrow’s “Capital Markets Theory” lecture will be delivered asynchronously.  This lecture explores capital market theory, transitioning from our previous (Thursday, March 14) portfolio theory lecture.  As in last week’s asynchronous lectures, class participation credit will be awarded to students who write and upload a lecture synopsis to Canvas.

Capital market theory examines the equilibrium pricing of individual securities, a concept better known as the capital asset pricing model (CAPM). This session mainly draws upon the lecture note  “Portfolio and Capital Market Theory,” the linked for which also appears under item 10 on the course website’s lecture notes page. Toward the lecture’s end, I discuss the Capital Market Theory Class Problem, available at http://fin4335.garven.com/spring2024/capmktproblem.pdf.

This lecture is available for viewing at https://mediaspace.baylor.edu/media/Capital+Market+Theory+Lecture+%28March+19%2C+2024%29/1_pkvgnk98.

How to know whether you are on track with Finance 4335 assignments

At any point throughout this semester, you can ensure that you are on track with Finance 4335 assignments by monitoring due dates on Canvas and the course website. Links for future class meetings, quizzes, problem sets, and exams appear on the Canvas “To Do” list. Links for readings (along with their due dates) appear on http://fin4335.garven.com/readings/, and links for problem sets (along with their due dates) appear on http://fin4335.garven.com/problem-sets/. In the case of assigned readings, students are required to complete a short (10-minute) readings quiz before the start of class for each reading assignment due date; the window for completing this task begins 24 hours before the start of the class meeting for which the reading assignment is due.