Free Course: Economics 252 Financial Markets (Yale University)

Financial Markets
Robert Shiller
Yale

Address 1 – Finance and Indemnity as Powerful Forces in Our Economy and Society

Professor Shiller provides a description of the course, Financial Markets, including administrative details and the topics to be discussed in each address. He briefly discusses the substance of studying finance and each key topic. Address topics will include: behavioral finance, financial technology, financial instruments, commercial banking, investment banking, financial markets and institutions, real estate, regulation, monetary policy, and democratization of finance.

Address 2 – Review of Probability and Statistics; Intro to Present Value

Statistics and mathematics underlie the theories of finance. Probability Theory and various distribution types are vital to understanding finance. Risk management, for instance, depends on tools such as variance, standard deviation, correlation, and regression analysis. Financial analysis methods such as present values and valuing streams of payments are fundamental to understanding the time value of money and have been in practice for centuries.

Address 3 – Technology and Invention in Finance

Technology and innovation underlie finance. In order to manage risks successfully, particularly long-term, we must pool large amounts of risk among many, diverse people and overcome barriers such as moral hazard and erroneous framing. Inventions such as indemnity contracts and social security, and information technology all the way from such simple things as paper, and the postal service to modern computers have helped to manage risks and to encourage financial systems to address issues pertaining to risk. The tax and welfare system is one of the most vital risk management systems.

Address 4 – Portfolio Diversification and Supporting Financial Institutions (CAPM Model)

Portfolio diversification is the most fundamental concept of risk management. The allocation of financial assets in stocks, bonds, riskless, assets, oil and other assets establish the expected return and risk of a portfolio. Taking account of covariances and expected returns, investors can make a diversified portfolio that maximizes expected return for a given level of risk. An vital mission of financial institutions is to provide portfolio-diversification services.

For Lectures 5 to 26, go here.

Watch these address topics if you have interest in learning from one of the more prominent teachers of Economics out there.

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