03 4045
Time of lectures and exercises: Tuesdays, 14:30-17:30.
Detailed description (English)
Syllabus in Hebrew and English
Lecture note sections to be covered (links to Lecture Notes below)
- Time-Value of Money, pp.3-15: time-value of money.
- Time-Value of Money, pp.16-21: applications of time-money relations.
- Time-Value of Money, pp.22-25: uncertain profit rate, i.
- Time-Value of Money, pp.26-31: uncertain yearly profit, A.
- Time-Value of Money, pp.32-33: uncertain i and A.
- Time-Value of Money, pp.34-43: present and future worth with uncertainty.
- Time-Value of Money, pp.44-51: strategic uncertainty.
- Time-Value of Money, pp.52-56: opportuneness.
- Benefit-Cost Ratio, pp.2-4: incommensurate benefits and costs.
- Benefit-Cost Ratio, pp.5-18: monetizing the benefit-cost ratio.
- Benefit-Cost Ratio, pp.19-32: BCR with incommensurate benefits and costs.
- Price Changes, p.4: consumer price index.
- Price Changes, pp.6-12: nominal and real prices.
- Price Changes, pp.13-26: engineering decisions with inflation.
- Price Changes, pp.26-37: foreign exchange rates.
- Portfolio management, pp.2-3: mean-variance analysis.
- Portfolio management, pp.4-9: info-gap extension of mean-variance analysis.
- Portfolio management, pp.10-18: value at risk.
- Forecasting, pp.2-19.
- Special Topic 1: Behavioral response to feedback (ro02.pdf, section 17).
- Special Topic 2: Strategic asset allocation (ro02.pdf, section 15).
Lecture Notes
Money-Time Relationships and Their Applications
Price Changes Inflation and Foreign Exchange
Behavioral Response to Feedback
Exercises
Homework exercises on Economic Decision Making for Engineers
Homework exercises on Info-Gap Risks in Project Management
Exercises are in file “Homework exercises on Economic Decision Making for Engineers” unless indicated otherwise.
Homework #1: Problems 1-5.
Homework #2: Problems 9, 11.
Homework #3: Problem 12.
Homework #4: Problem 28.
Homework #5: Problem 13, a,b (and c).
Homework # 6: Problems 15, 16.
Homework # 7: Problems 17 and 18.
Homework # 8: Problem 20.
Homework #9: Problem 39 (f), (g) and (h).
Homework # 10: Problems 35, 40 (f)-(i).
Homework #11: Problem 51.
Homework #12: Problem 23 (a), (d) and (e).
Homework #13: Problems 5, 6, 4a in Info-Gap Risks in Project Management.
Homework #14. Problem 86 (a)-(c) in Problem Set on Robustness and Opportuneness.