Finance 313

Investments

Instructor: Anthony Yanxiang Gu Office: 115D South Hall

Telephone: 5368 (O) Email: gu@geneseo.edu

Office Hours: ...... Tuesday & Thursday, and by appointment

Course Objectives:

The course objectives are to familiarize you with the functioning of the securities markets and provide an introduction to the areas of security analysis and portfolio management. We will examine investment in various financial instruments including stocks, bonds, and options. We will also discuss in-depth mutual funds and other investment companies. Our investigation of modern portfolio theory starts with a general discussion of risk and return and the lessons of capital market history, and then proceeds to asset allocation and portfolio optimization. We will explore the macro and micro environments of security valuation, analyze the effects of technological changes and globalization on finance, and discuss the business ethics, legal and regulatory environment.

Prerequisites: MGMT 311

Required Material:

1) Zvi Bodie, Alex Kane and Alan Marcus, Essentials of Investments, 9th Edition, 2010, Irwin McGraw-Hill.

2) Financial Calculator

 

Suggested Material:

The Wall Street Journal

Charles Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises, 2000, John Wiley & Sons. It is a must for Wall Street trainees.

Maria Bartiromo, Use the News how to separate the noise from the investment nuggets and make money in any economy.
A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation, by Richard Bookstaber
The Age of Turbulence: Adventures in a New World by Alan Greenspan

 

My Outbox: old quizzes/exams

 

Website Exploration:

Websites will be provided for you to explore, which will help you learn more.

Your recommendation of relevant websites is appreciated.

Try E-Learning sessions at www.mhhe.com/bkm

Play your stock market game at www.virtualstockexchange.com/competitions/create.html,

www.stocksquest.com, www.tivid.com, www.tivid.com/help/howto

 

Elements of the Grade:                                                                    Points

Examination 1 & 2 (100 each)                                                              200

Final                                                                                                      100

Quizzes (Best 4 of 5, 11.25 points each)                                                45

Mutual Fund Project (due TBA)                                                             35

Security Analysis Project (due and presentation, TBA)                         65

Portfolio Project (stock market game due and discussion, TBA)           25

Class Participation                                                                                 30

Total                                                                                                        500

 

Grading Structure:

A 93-100            A- 90-92              B+ 87-89             B 83-86             B- 80-82             C+ 77-79

C 73-76             C- 70-72               D 60-69               E < 60              Normal rounding rules applied

 

Exam Dates:

Exam 1  Chapters 1 - 5                                                                                   October 2

Exam 2  Chapters 6, 9, 10, 12, 13                                                                 November 13

Final Exam Comprehensive                                                                           December 16, 12:00 ?C 3:00pm

 

Field Trip: The New York Stock Exchange, late                                          October

 

Library Instruction: September 25, Milne 104 LL. Outside Speaker:      November 4 or 6?

 

Quizzes:

The quizzes are designed to ensure that students stay up-to-date with the material. Upcoming quizzes will be announced at least one class period in advance. There will be no make-up quizzes.

 

Homework:

Homework will be assigned but not collected because solutions are available to students. It is important that you do the homework. The understanding of the homework is critical to good examination performance. The benefits of class time to you will depend on the quality of your preparation prior to class. You may not always be able to complete the homework problems, but go as far as you can so that you know your improvements and can ask questions in class.

 

Projects (Detailed directions are distributed separately. No late submission will be accepted.)

 

Class Participation:

Your ability to raise interesting and stimulating questions and issues is greatly appreciated. Assignments will be given which involve analysis and class discussion.

 

Chapters to be Covered:           Chapter numbers Changed             Homework Problems (chapter end)

1 Investments: Background and Issues

2 Financial Securities                                                                                  1, 2, 10, 11, 16, 17

3 Securities Markets                                                                                    1, 2, 6, 9, 10, 13, 18

4 Mutual Funds and Other Investment  Companies                             4, 7, 8, 17

5 Risk and Return: Past and Prologue                                                    4, 13, 14a, 19

6 Efficient Diversification (Excel Lab?) (10/7 - 9)                                    4, 6, 7, 8, 9, 10, 12, 18

13 Equity Valuation (10/16 -- 21)                                                               5, 13, 20

14 Financial Statement Analysis (10/23)                                                 2, 3, 14, 19

10 Bond Prices and Yields (10/28)                                                           3, 5, 10, 14, 22

11 Managing Bond Portfolios (11/4)                                                         1, 2, 7, 18, 23

15 Options Markets (11/18)                                                                        4, 5, 6, 15

9 Behavioral Finance and Technical Analysis, Preview for the Final Examination (12/2,4)

Other Interesting Topics, Chapters 12 and 19, if we move fast

 

NOTE: All information in this syllabus and course schedule is tentative and subject to change. Adjustments may be made as the course progresses to ensure adequate coverage of topics.

 

Accommodations:

"SUNY Geneseo will make reasonable accommodations for persons with documented physical, emotional or learning disabilities. Students should consult with the Director in the Office of Disability Services (Tabitha Buggie-Hunt, 105D Erwin, tbuggieh@Geneseo.edu) and their individual faculty regarding any needed accommodations as early as possible in the semester."