Investment Science for Beginners

Monday, March 26, 2012

A couple of years back I took MS&E 242S - Investment Science course from Stanford where I got a chance to learn several concepts in investment science, some important ones I published as articles, listing a reference to all of them here so that this page serves as a definitive reference for some of the fundamental and important concepts in Investment Science.

Note: For some of the posts, you may need to refer Investment Science by Luenberger for problem statements, but they are also mentioned in the respective entries, also a few articles are meant to familiarize yourself with the basics of working with a financial calculator used to solve some of the problems in Investment science, the one I used being the Texas Instruments BA II Plus Financial Calculator, also familiarity with excel/openoffice spreadsheets may help as some of the problems were solved using spreadsheet/excel computations.

1.   Investment Science: Yearly, monthly and Continuous compounding

2.   Using math symbols in openoffice

3.   Investment Science: Effective and Nominal interest rates

4.   Investment Science: Present Value and Future Value of an investment

5.   Investment Science: Cash flow streams and their present and future values

6.   Investment Science: Present value analysis of cash flow streams - Problem 2.7 Luenberger

7.   Investment Science: Computing Net Present Value of a cash flow stream using a financial calculator

8.   Investment Science: Internal rate of return of a cash flow stream

9.  Investment Science: Computing the Internal rate of return of a cash flow stream using a financial calculator

10. Investment Science: Net Present Value and Internal rate of return calculations in spreadsheet (OpenOffice)

11. Investment Science: Net Present Value vs Internal rate of return analysis in investment decisions - Problem 2.11 Luenberger

12. Investment Science: Incremental internal rate of return for analyzing alternate investment options - Problem 2.8 Luenberger

13. Investment Science: Perpetual Annuity - How to compute your monthly loan payment

14. Investment Science - Understanding the mathematics of Mortgage payments - 1 - Problem 3.6 Luenberger


15. Investment Science: Amortization schedule of a Mortgage/loan payment

16. Investment Science: Variable rate Mortgage - Problem 3.8 Luenberger

17. Investment Science: The price of a bond and it's yield - Problem 3.9 Luenberger

18. Investment Science: Sum of a Geometric series and applications in computing Net Present Value

19. Investment Science: Duration of a bond - Problem 3.10 Luenberger

20. Investment Science: The price of a bond and it's relationship to the Present Value formula

21. Investment Science: Bond Portfolio Immunization

22. Investment Science: Bond Price Sensitivity

23. Investment Science: The Price of a bond and it's duration using excel/spreadsheet - Problem 3.10 Luenberger

24. Investment Science - Bond Portfolio Immunization Example - Problem 3.12 Luenberger

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