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