1. Financial Markets – Fall, 2019

2. Professor Edwin T Burton

3. Information About this Course
Rely on the Course Website (or at Collab for the Course Website)

4. Textbook for this Course (Available only on Amazon):

5. Examinations First Mid-Term Thursday, September 26th
Second Mid-Term Thursday, November 7th
Final Exam Tuesday, December 10th 2 PM – 5 PM

6. The Overlap Rule
No Exams May Be Taken That Do Not Overlap With the Scheduled Exam Times

7. No Make-Up Exams Are Given for the Mid-Terms
The No Make-Up Rule
No Make-Up Exams Are Given for the Mid-Terms
See Syllabus for More Details

8. The Final Exam Rule
Failure to Take the Final Exam as Scheduled automatically results in an incomplete for the course.
Any make-up for the final can only take place after receiving an incomplete in the course

9. Concept of a Financial Asset
Foundations
Concept of a Financial Asset
Default Free
Riskless
CAPM
Valuation

10. The No-Arbitrage Assumption
Key Concepts of Modern Finance
Risk Free Asset
The No-Arbitrage Assumption

11. Only Experts Can Use Them?
What Can Financial Markets Do For You?
Only For the Rich?
Are They Rigged?
Only Experts Can Use Them?

12. Median Household Income in Virginia in 2017 was $ 71,535
According to the Census ACS 1 Year Survey
Can the median household in Virginia benefit from financial markets?

13. Average annual return from owning US common stocks over the past 100 years?
2% ?
6 % ?
10% ?

14. Average annual return from owning US common stocks over the past 100 years?
2% ?
6 % ?
10% ?
And this is just the average return!!!!

15. Imagine You Invested $ 1,000 and earned only the average stock market return?
$ 17,449.40
In Thirty Years
$ 6,727.50
In Twenty Years
$ 2,593.75
In Ten Years
Invest $ 1,000

16. What if you saved $1,000 every year and put it in the stock market?
$ 718,904.84
and earned the average return!
In Forty Five Years
And this might only cost $ 700 per year in investment! (In an IRA)
$ 57,275
In Twenty Years
$ 15,937.42
In Ten Years
Invest $ 1,000
Every Year

17. The End