Lectures

One page per week of lectures. Each page has a short overview of the topics covered and the slide decks to download. Slides are posted by the start of each week.

Week 1

Introduction & Finance 1-0-1

What this course is about and how it works, followed by the finance toolkit we build on all semester: assets, present value, time value of money, risk, compounding, and inflation.

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Week 2

Portfolio Theory

Markowitz mean-variance optimization: diversification, the efficient frontier, the Sharpe ratio, and the tangency portfolio — the theory you will put to work in PC Lab 1.

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Week 3

CAPM and APT

From portfolio choice to asset pricing: the Capital Asset Pricing Model, the Security Market Line, and Arbitrage Pricing Theory — and how they hold up in practice.

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Week 4

Empirical Asset Pricing

Data-driven finance begins: the Fama–French three-factor model, how factors are built, the 'factor zoo' problem, and modern statistical answers to it.

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Week 5

Asset Pricing with Big Data

Where the course title comes true: alternative data, machine learning methods in asset pricing, what they can and cannot do — and a few warnings about disruption.

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Week 7

Microeconomics of Banking

Why do banks exist? Asymmetric information, liquidity transformation, and the Diamond–Dybvig model — the economics beneath every balance sheet.

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Week 8

Banking in the Age of AI

Machine learning inside the bank: how ML changes screening and lending, and what FinTech competition means for traditional intermediaries.

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Week 9

Financial Intermediation in the Age of AI

The frontier questions: fairness and discrimination in algorithmic finance, search frictions, and how data is reshaping private equity and venture capital.

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Week 10

Payment Technology & Foundations of Blockchain

A double session: how payments actually work, what went wrong at FTX, and the cryptographic foundations of blockchain — plus exam format and final-presentation logistics.

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Week 11

Cryptocurrency and Smart Contracts

The last lecture: the FTX/Alameda balance sheet up close, how cryptocurrencies work as assets, and what smart contracts can (and cannot) do.

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