IEMS 326 Economics and Finance for Engineers

Winter 2009

Updated 3/17/2009

Lectures: Monday Wednesday Friday 3:00-3:50 in Tech LR5 a.k.a. M193

Instructor: Benjamin Armbruster, lastname@northwestern.edu
Office Hours Mondays 4-6, Tuesdays 3-4 in Tech M237

TA: Ming Liu, first-last@northwestern.edu
Office Hours Thursdays 3:30-5:30 in Tech C236


Syllabus, Tentative Schedule
Jump to Homework and Handouts and Old Announcements

Announcements

projects, posters, and pictures

Take-home final Monday 3/16 5pm to Tuesday 3/17 5pm. Solutions

Project reports due Wednesday 3/18 at noon.

Review sheet on depreciaton and taxes

Resources

Yahoo Finance
Bankrate

Tentative Schedule

Time Value of Money
Project Valuation
1/19 MLK Day
Financial Markets, Risk and Return
2/6 Guest lecture by Will McLean (Northwestern University Chief Investment Officer)
Corporate Finance
2/23 Guest lecture by Professor Mike Marasco on entrepreneurship
Miscellaneous Topics
3/11 Project fair
3/13 Review
Final

Homework and Handouts

Hwk 1 Hwk 1 Solutions

Review sheet 1 for geometric series.

Hwk 2 Hwk 2 Solutions

Review sheet 2

CDO spreadsheet

Hwk 3 Hwk 3 Solutions

notes and the option spreadsheet for 1/21

Hwk 4 Solutions Part 1 and Part 2

Review sheets on making the best choice, simulation, finance, and bonds.

2-stock portfolio spreadsheet

some finance definitions

CAPM slides

Hwk 5 Solutions

Optional take-home midterm Solutions

Review sheet on Dupont analysis.

depreciation spreadsheet.

Hwk 6 Solutions

take-home midterm 2 Solutions

Review sheet on duration

Review sheet on options

Review sheet on depreciaton and taxes

Final Solutions

Old Announcements

I encourage those on the waiting list to come to the first class. After the lecture I will accept additional students if any slots have opened up (priority given by the order I was contacted).

Suggested reading: Chapter 3.

Hwk 1 is due in class on Wednesday 1/7. This review sheet may be helpful. Hwk 1 Solutions

I will email students on the waiting list if any slots have opened up.

Hwk 2 is due in class on Friday 1/9. Solutions

Hwk 3 is due in class on Wednesday 1/14. Solutions

Posted review sheet 2 (fixed!)

Suggested reading: Chapter 7.

Suggested reading: Chapter 11.

SSD is seeking a note taker for this class (paid!). Ad

Hwk 4 #1-3 are due in class on Friday 1/23. Solutions to part 1 and part 2. The remainder are due in office hours on Tuesday 1/27. You may work in groups of up to 3 people.

Optional take-home midterm Solutions

Suggested reading: How Debt Bites Back cartoon.

Posted CDO spreadsheet

Posted TA's notes and the option spreadsheet for 1/21.

Suggested reading: Chapters 4 and 5.

Article on compensation in finance (written in 2005, during the boom).

Review sheet 3

Suggested reading: Chapters 8 and 9.

Posted review sheets on simulation, finance, and bonds.

Posted spreadsheet for 2-stock portfolio discussed on 1/28.

Slides from 1/30 lecture on mortgage crisis.

list of potential project ideas.

Hwk 5 due Wednesday 2/11. You may work in groups. Solutions

Slides from Ming Liu's lecture on CAPM on February 2.

A handout with some finance definitions.

Slides from Northwestern University's endowment manager Will McLean's guest lecture on 2/6.

Review sheet on Dupont analysis.

depreciation spreadsheet.

Hwk 6 (updated, due Friday 2/27) Solutions

take-home midterm 2 Solutions

Review sheet on duration

Review sheet on options