An Alternative Core Finance “Syllabus”

  New to finance? Not getting anything out of the lectures or reading?  Then here’s an alternative study routine for you from the MIT Sloan School of Management.  I like the way Professor Lo explains things, and as an added bonus you can download the videos and put it on your ipod for those long bus/bike rides to campus.  I think the content is presented much, much better and is very well organized.

  Watch the following sample at 20:36 for an example of how he provides a similar response, but then follows it up with an actual explanation.  This is the exact question we had in class:  how does the dividend discount model apply to stocks that don’t pay dividends?  Give it about 3 minutes.  

  If you like this teaching style a little more, then watch the movies below and read the lecture slides before each class session:


Present Value Relations (3 hrs)

Bonds (fixed income securities) (3 hrs)

Class 4 (Thurs, Sept 25th): Equity Fundamentals (2 hrs)

Class 5 (Tues, Sept 30th): Efficient Markets (3 hrs)

Note: Yes, it’s 3 hours.  Just watch the first 10 minute video and then determine if you want to watch the rest.  It goes into psychology for a bit, which I loved.  It’s an amazing lecture.

Class 8 (Thurs, Oct 9th):

1. Risk and Return (1 hr)

2. Portfolio Theory (Pt 1) (30 min)

Class 10-11 (Thurs, Oct 16th and Tues, Oct 21): CAPM   (2 hrs)

Classes 12-14 (Thurs, Oct 23rd thru Thurs, Oct 30): Capital Budgeting  (2 hrs)

Class 17-20 (11 Nov – 20 Nov): Capital Structure – no video lectures, but here are some slides that are a little better than the ones on Canvas.

Discussion on MM theory slides

What’s missing from MM theory?  Part 1

What’s missing from MM theory?  Part 2

WACC and APV slides

You can always view the complete course at MIT’s OpenCourseWare Finance Theory I site.

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