Investments: Fin 334

Fall 2006

Dr. Mark Walker Class Hours: T Th, 1:00 – 2:15 pm

Office: 237 Holman Classroom: Holman 138

Phone: 915- 7721

Office Hours: T Th, 2:30 – 4:00 pm

Course description – survey of securities and securities markets; risk and yield; valuation; forecasting; and portfolio management.

Pre-requisite courses – BUS 230, and FIN 331 (co-requisite).

Text – Gitman, Lawrence J., and Michael D. Joehnk, Fundamentals of Investing, 9^th Edition, Addison Wesley, 2003.

The Wall Street Journal.

Grading – Your final grade will be based on 600 possible points.

Test 1 (Ch. 1,2,3) 100 points

Test 2 (Ch. 4,5) 100

Test 3 (Ch. 6,7) 100

Test 5 (Ch. 8,9) 100
Test 6 (Ch. 10,11,12) 100

Drop Lowest Grade (100)

Subtotal 400

Test 4 (Take home) 100

Test 7 (Ch. 13,14,15) 100

Total Points 600

Course policies:

1. Each student is required to have his or her own financial calculator. Students will not be permitted to share calculators during the exams.

2. If a student misses an exam, the missed exam will be treated as the student’s drop grade.

3. Students are permitted to use a formula sheet during each test (1 sheet: 8 ½” x 11”).

4. In addition to reading the assigned material, students should study the following sections in each chapter: Concepts in Review, Summary, the CFA exam problems, and the on-line Assessment Quiz.

5. Students should work the assigned homework problems. Please see the textbook website for answers to the assigned homework problems.

	Tentative Schedule
				Homework
Date	Chapter	Topic		Problems
22-Aug	1	The Investment Environment		Q1.1;
		Steps in investing, taxes, life cycle		P1.2 - P1.4
24-Aug	2	Markets and Transactions		Q2.5;
		IPO's, long / short, margin		P2.1 - P2.19 (odd numbers)
29-Aug	3	Online Information and Investing		Q3.7;
		Stock market averages, orders		P3.3 - P3.11 (odd numbers)
31-Aug	Test 1	Chapters 1, 2, and 3
5-Sep	4	Return and Risk		P4.1 - P4.4
				P4.8 - P4.41 (odd numbers)
7-Sep	4	Return and Risk		P4.1 - P4.4
				P4.8 - P4.41 (odd numbers)
12-Sep	5	Modern Portfolio Concepts		P5.4, 5.5, 5.14, 5.15, 5.16, 5.18,
				P5.21, 5.22, 5.23, 5.24
14-Sep	5	Modern Portfolio Concepts		P5.4, 5.5, 5.14, 5.15, 5.16, 5.18,
				P5.21, 5.22, 5.23, 5.24
19-Sep	Test 2	Chapters 4 and 5
21-Sep	6	Movie: "A History of the Dow"		Q6.1, 6.2, 6.4, 6.5
26-Sep	6	Common Stocks		P6.1, 6.3, 6.4, 6.5, 6.7, 6.8, 6.9,
		Definitions		P6.10, 1.11, 6.13, 6.14, 6.15
28-Sep	7	Analyzing Common Stocks		Q7.1 - 7.3;
		Economic forecasting, industry		P7.1 - 7.14, 7.17
3-Oct	7	Analyzing Common Stocks		Q7.1 - 7.3;
		NAIC Stock Selection Guide (SSG)		P7.1 - 7.14, 7.17
5-Oct	Test 3	Chapters 6 and 7
10-Oct	8	Stock Valuation		Q8.2;
				P8.1 - 8.5, 8.7 - 8.16, 8.18
12-Oct	8	Stock Valuation		Case Problem 8.1, 8.2
17-Oct	9	Market Price Behavior		Q9.4, 9.5
	Test 4	Takehome Test 4 is due (NAIC SSG)
		Use Excel spreadsheet; include 3 - 4 page report
		explaining justification for your estimates (e.g., growth, P/E, etc).
19-Oct	Test 5	Chapters 8 and 9
24-Oct	10	Fixed Income Securities		Q10.1;
		Bond characteristics		P10.1 - P10.15 (odd numbers)
26-Oct	11	Bond Valuation		Q11.1, 11.4
		Bond price, yield to maturity		P11.1 - P11.23 (odd numbers)
31-Oct	12	Preferred Stocks and Convertibles		Q12.3;
				P12.1, 12.2, 12.5, 12.8 - 12.14
2-Nov	12	Preferred Stocks and Convertibles		Q12.3;
				P12.1, 12.2, 12.5, 12.8 - 12.14
7-Nov	Test 6	Chapters 10, 11, and 12
9-Nov	13	Mutual Funds		Q13.1, 13.3;
		Net Asset Value		P13.1 - 13.15 (odd numbers)
14-Nov	14	Managing Your Portfolio		P14.1 - 14.9 (odd numbers)
16-Nov	15	Options: Puts, Calls, and Warrants		P15.1 - 15.11 (odd numbers)
21-Nov	Thanksgiving Holiday
23-Nov	Thanksgiving Holiday
28-Nov	15	Options: Puts, Calls, and Warrants		P15.1 - 15.11 (odd numbers)
30-Nov	Review
5-Dec	Test 7	Chapters 13, 14, and 15	4:00 PM