Ludium - Learn by Doing

Finance Theory

01Introduction to Finance 02Time and Risk in Finance 03Corporate Cash Flow Framework 04Six Principles of Finance Problem set0/10 Practice∞

01Assets 02Information, Uncertainty, and Markets 03Government Bailouts 04Assets as Cash Flows 05Net Present Value Problem set0/10 Practice∞

01NPV and Investment Decisions 02Perpetuities 03Annuities 04APR vs EAR and Compounding Problem set0/10 Practice∞

01Leverage and Lehman Brothers 02Subprime Mortgage Crisis 03Inflation and Real vs Nominal Returns 04Fixed Income Securities 05Bond Valuation Problem set0/10 Practice∞

01Spot Rates and Bond Pricing 02Forward Rates and Bond Prices 03The Yield Curve 04Locking in Future Interest Rates 05Coupon Bonds and Yield to Maturity Problem set0/10 Practice∞

01Reading the Yield Curve 02Money Market Funds 03Law of One Price 04Short Selling and Arbitrage 05Duration and Convexity Problem set0/10 Practice∞

01Yield Curves and Economic Prediction 02Duration and Convexity for Bond Risk 03Corporate Bonds and Credit Risk 04Securitization 05Correlation Crisis in Mortgage Securities Problem set0/10 Practice∞

01Equity and Stock Ownership 02Primary vs Secondary Markets 03Dividend Discount Model 04Risk-Adjusted Discount Rates 05Gordon Growth Model Problem set0/10 Practice∞

01Corporate Hedging with Derivatives 02Forward Contracts 03Forward Contract Pricing and Risks 04Futures Contracts and Counterparty Risk 05Forwards vs Futures Problem set0/10 Practice∞

01Futures: Margin, Settlement, Clearing 02Futures vs Forwards: Credit Risk 03Forward Pricing: No-Arbitrage Approach 04Futures Pricing: Gold, Gas, and S&P 500 05Futures for Portfolio Management 06Options: Calls, Puts, and Insurance Problem set0/10 Practice∞

01Option Payoff Diagrams 02Option Strategies and Volatility Bets 03Implied Volatility and the VIX 04Origins of Option Pricing 05Black-Scholes-Merton Model Origins Problem set0/10 Practice∞

01Binomial Option Pricing Model 02Risk-Neutral Option Pricing 03Binomial Trees to Black-Scholes 04Calibrating the Binomial Model 05Risk, Return, Variance, and Std Dev 06Correlation and Diversification Problem set0/10 Practice∞

01Efficient Market Properties 02Risk and Return Across Asset Classes 03Size, Value, and Momentum Effects 04Active vs Passive Investing 05Portfolio Weights and Leverage 06Diversification and Mean-Variance Problem set0/10 Practice∞

01Portfolio Variance & the Covariance Matrix 02Two-Asset Portfolio Diversification 03Correlation and Portfolio Diversification 04The Efficient Frontier 05Correlation Risk in Financial Crises 06Risk Parameter Estimation and Stationarity Problem set0/10 Practice∞

01The Efficient Frontier 02Why Negatively Correlated Stocks Don't Exist 03Tangency Portfolio and the Sharpe Ratio 04The Mutual Fund Separation Theorem 05The Market Portfolio 06The CAPM: Beta and Systematic Risk Problem set0/10 Practice∞

01From the CML to the SML: Why Beta Replaces σ 02Understanding Beta 03Systematic vs. Idiosyncratic Risk 04Portfolio Beta and the Security Market Line 05Alpha and the Security Market Line Problem set0/10 Practice∞

01Empirical Tests of the CAPM 02Beta vs. Volatility 03Capital Budgeting with NPV 04After-Tax Cash Flows & Depreciation Tax Shield 05Pure Play Comparables Method 06Risk-Matched Discount Rates Problem set0/10 Practice∞

01Payback Period 02Profitability Index and the Scale Problem 03Internal Rate of Return (IRR)04IRR in Practice: Bonds, PE, and Survey Data 05NPV as the Gold Standard 06The Efficient Markets Hypothesis Problem set0/10 Practice∞

01The Efficient Markets Hypothesis 02Loss Aversion 03The Ellsberg Paradox & Knight's Uncertainty 04Toxic Assets and the Dutch Book 05Neuroscience of Rational Decision-Making 06The Adaptive Markets Hypothesis Problem set0/10 Practice∞

01The Adaptive Markets Hypothesis 02The Market Efficiency Cycle 03Pain, Dopamine, and Financial Risk-Taking 04The Biological Case for Financial Regulation 05The Six Principles of Finance 06Valuing Any Financial Asset Problem set0/10 Practice∞