Foundations of Finance

01Defining Finance and the Financial System 02Valuation and Management: The Two Challenges 03Stocks, Flows, and the Five Cash-Flow Decisions 04Time, Risk, and the Six Principles of Finance 05How to Learn Finance: Practice and Study Habits Problem set0/10 Problem set 20/10 Practice∞

Present Value

01Information and Price: An Auction and Fannie Mae 02Who Pays for the Fannie and Freddie Guarantee?03What Counts as an Asset: Patents, Secrets, Brands 04An Asset as a Sequence of Dated Cashflows 05The Value Operator and the Cashflow Timeline 06Dates as Currencies: Building Net Present Value 07Discount Factors: Market Prices for Future Dollars 08A Worked Net Present Value and Its Assumptions 09The Opportunity Cost of Capital and Present Value Problem set0/10 Problem set 20/10 MIT problem set0/5 Practice∞

01Does the Currency Change an NPV's Sign?02Moral Hazard and Contagion: Where Bailouts Stop 03The NPV Rule at Work, and Choosing the Rate 04The Perpetuity: Why Cash Forever Is Worth C/r 05Reading the Rate Off a Perpetuity's Price 06The Growing Perpetuity, and When Growth Outruns r 07Building the Annuity from Two Perpetuities 08The Annuity Discount Factor and Mortgage Payments 09APR, the Effective Annual Rate, and Compounding Problem set0/10 Problem set 20/10 MIT problem set0/13 Practice∞

How to Learn Finance: Practice and Study Habits

Why does understanding finance typically arrive only between the eighth and thirteenth week, and what should you do until then?

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Your summary note

1. Knowledge pulled rather than force-fed
  State that knowledge here has to be pulled rather than force-fed, and write down the division of labor: motivation and the hardest parts of the theory on one side, the analysis on the student's.
2. Financial analysis as alien to ordinary cognition
  Record that nobody is hardwired for net present value, note the eighth-to-thirteenth-week span the video gives for understanding to arrive, and write down repetition as the response to difficulty.
3. Theory distilled from practice
  State that finance has no existence apart from practice and that its theory is deduced from what practitioners do, then record refinancing a loan as the personal counterpart to a corporate project.
4. The five study habits
  List the five habits in the video's order, and record the distinction it draws between working problems in a group and working them alone.
Attempt 1 of 2