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14. Quantifying Uncertainty and Risk
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15. Uncertainty and the Rational Expectations Hypothesis
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16. Backward Induction and Optimal Stopping Times
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17. Callable Bonds and the Mortgage Prepayment Option
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18. Modeling Mortgage Prepayments and Valuing Mortgages
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19. History of the Mortgage Market: A Personal Narrative
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20. Dynamic Hedging
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21. Dynamic Hedging and Average Life
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22. Risk Aversion and the Capital Asset Pricing Theorem
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23. The Mutual Fund Theorem and Covariance Pricing Theorems
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24. Risk, Return, and Social Security
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25. The Leverage Cycle and the Subprime Mortgage Crisis
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26. The Leverage Cycle and Crashes
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