About the Course3 ^8 `9 Z4 n, X; G( I

Financial institutions are a pillar of civilized society, supporting people in their productive ventures and managing the economic risks they take on. The workings of these institutions are important to comprehend if we are to predict their actions today and their evolution in the coming information age. The course strives to offer understanding of the theory of finance and its relation to the history, strengths and imperfections of such institutions as banking, insurance, securities, futures, and other derivatives markets, and the future of these institutions over the next century.5 D* F; {( z4 B9 G/ s  {' X6 z' m. u


About Professor Robert Shiller3 b6 [8 N% K) l6 b) B; p' E

Robert J. Shiller is Arthur M. Okun Professor of Economics at Yale University and a Fellow at the International Center for Finance at the Yale School of Management. Specializing in behavioral finance and real estate, Professor Shiller has published in Journal of Financial Economics, American Economic Review, Journal of Finance, Wall Street Journal, and Financial Times. His books include Market Volatility, Macro Markets (for which he won the TIAA-CREF's Paul A. Samuelson Award), Irrational Exuberance, and The New Financial Order: Risk in the Twenty-First Century.9 w" z1 X# v;


lecture 1   Finance and Insurance as Powerful Forces in Our Economy and Society

lecture 2   The Universal Principle of Risk Management: Pooling and the Hedging of Risks3 F" S! E(

lecture 3   Technology and Invention in Finance

lecture 4   Portfolio Diversification and Supporting Financial Institutions, (CAPM Model)