FNAN 411: Investment Analysis and Portfolio Management Master Syllabus
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Course Website: Canvas
The Course Objectives
This course is designed to expose students to advanced portfolio management and asset valuation. The objectives are for students to use modern return-risk trade-off tools to construct optimal risky portfolios and to price various securities. Particularly for the second objective, students will learn the modern valuation techniques of various fix income securities, equities, and derivative securities such as futures, options and swaps.
Learning Goals
Upon successful completion of this course, students will be able to (1) value complex projects, assets and securities, (2) demonstrate, evaluate, and explain the risk return tradeoffs in finance, and (3) price and use derivatives.
Course Resources and Supporting Items
Required Textbook
- Bodie, Kane, and Marcus, Essentials of Investments, 11th edition, McGraw-Hill/Irwin, 2019. (BKM)
Optional Textbook and Other Resources
- A calculator is required. Sometimes, class lectures will involve working through problems. Thus, you should have your calculator ready before class starts.
- A subscription to the Wall Street Journal is strongly recommended. Other helpful periodicals include Barron’s, Business Week, and other financial newspapers. During the term, you may be asked to read certain articles in current business periodicals.
- Students are encouraged to check out financial web sites regularly to keep up with latest financial news. Here are some examples:
Grades
Since this is an advanced course in investments, it inevitably covers more difficult material and concepts than those in FNAN 311. Students are responsible for putting in sufficient time to study the textbook, course notes, and problems. I expect this course to be intellectually demanding. My intention is to grade generously, but fair. I will, however, not hesitate to give low grades to those who clearly did not put in sufficient amount of effort. You also will be evaluated on the basis of class participation/attendance.
Your final grade will be based on:
| Exam I (3/1 Monday) | 25% |
| Exam II (4/5 Monday) | 30% |
| Final Exam | 45% (Comprehensive) |
| Final Grade | 100% |
The final exam is scheduled on TBD. Students are not allowed to skip any of the prescheduled exams. One exception is that you present a physician’s statement attesting to illness on the day of the exam or for an extraordinary reason.
Students’ final letter grades for the course are determined based on the following: A: 92.0 or greater, A-: 89.0 – 91.9, B+: 86.0 – 88.9, B: 82.0 – 85.9, B-: 78.0 – 81.9, C+: 74.0 – 77.9, C: 69.0 – 73.9, D: 60.0 – 68.9, F: 59.9 or less.
Homework Problems
I will assign problems for homework. They will not be collected, but part of exams will be taken either directly or slightly modified from them. Thus, it is important that you do homework problems. Just reading and memorizing the answers to the study questions will not prepare you for the exams. You may find their volume too much to handle alone; the best way to proceed is to work in groups.
Project
There will be no project assignment in this semester due to the pandemic and the fact that it is inconvenient for students to work together as a group during the pandemic.
Other Policies
University Office of Disability Services
If you are a student with a disability and you need academic accommodations, please see me and contact the Office of Disability Services (ODS) at (703) 993-2474. All academic accommodations must be arranged through the ODS.
Academic Misconduct
It causes failing the course and triggers quite unpleasant university-mandated procedures which result in further sanctions. Faculty Rule 2.11.5 (Faculty Responsibility under the Honor Code) requires alleged academic misconduct to be reported to the department and the Honor Committee. Please! Don’t even think about it.
Course Outline
Lecture notes and other course materials will be posted on the Canvas. Please download lecture notes before class.
- Fixed Income Securities and Term Structure of Interest Rates
Chapters 10 and 11
- Equity Valuation
Chapter 13
- Options and Other Derivative Securities
Chapters 15, 16, and 17
- Financial Risk Management Using Derivative Securities
Chapter 17
- Market Efficiency
Chapter 8
- Behavioral Finance and Technical Analysis
Chapter 9
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