MSF 603: Managerial Economics and Decisions of the Firm
Course Instructor:
Office Number:
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Course Meeting Times:
Course Website: Canvas
At this site, you can access course materials (e.g., lecture slides) and course assignments.
Course Objectives
Upon completion of the course, students shall be able to:
- Examine and analyze ethical theories in the context of evaluating conduct in business in the field of finance.
- Critically assess different ethical theories as applied to examples and cases
- Understand the ethical foundations of a market economy and ethically responsible marketplace conduct
- Understand the reoccurring history of ethical problems in finance and potential explanations for why they continue to occur
- Explore and identify various ethical values at stake in different situations and circumstances
- Understand the psychological biases, situational influences, social and organizational factors that can affect ethical decision making
- Understand and apply action-guiding ethical principles for finance professionals
- Understand the application of codes of conduct and professional standards, in particular the CFA Institute Code of Ethics and Standards of Professional Conduct. Students shall be sufficiently exposed to study for and take the Ethics module of the CFA Exam.
Class Methodology
The class format will combine reading, lectures, presentations, and other learning tools. The class will be interactive and require every student to be engaged in the weekly discussions and assignments. In addition to the lectures, screencasts and timely completion of assignments, every student will be expected to be an active participant and a dedicated individual applying what they learn to every element of the course work.
Other Course-Related Audience
In addition to your lectures, you will analyze ethics-in-finance related case studies. You will then respond, in writing, with your analysis (main issues presented in the case, and their analysis/potential answers) of those case studies.
You may work together in pairs (as a team of two members or individually) in analyzing the cases. Make sure to include the names of both the members AND each member submits the same copy of the group’s submission.
Course Material
We do NOT have any specific Textbook. Instead, we use mainly the CFA Institute's Ethics Learning Lab (paid subscription needed, along with a free CFA Institute account). I will also assign additional reading materials from time to time.
Create Your Account and Purchase Access to CFA Institute's Ethics Learning Lab - you need access to this material for the duration of our term, so a monthly subscription could be optimal. Be sure to use the Discount Codes as given below:
For monthly subscriptions for this semester (the discounted monthly subscription rate is $15 (a savings of US$10/month):
Annual Subscription (Valid: TBD)
IF you or anyone else is interested in an annual subscription, you can use the discount code TBD to get the reduced Member price of $150 (versus $250).
Use the link below to purchase your subscription - if you are an existing CFA Institute member or a CFA candidate, you automatically get the discounted price. If you are not, you need to click on the "Non-members" sign up link and then use the Discount code where asked to enter (to take this class, you do NOT need to become a member or a candidate):
CFA Institute Subscription Plans
Participation
Learning can only happen when you are playing an active role. It is important to place more emphasis on developing your insights and skills, rather than transmitting information. Knowledge is more important than facts and definitions. It is a way of looking at the world, an ability to interpret and organize future information. An active learning approach will more likely result in long-term retention and better understanding because you make the content of what you are learning concrete and real in your mind.
Although an active role can look differently for various individuals, it is expected in this class that you will work to explore issues and ideas under the guidance of the professor and your peers. You can do this by reflecting on the content and activities of this course, asking questions, striving for answers, interpreting observations, and discussing issues with your peers.
Course Grading and Evaluation
Table 1 identifies the graded items and associated weights.
TABLE 1.
| CFA Ethics Learning Lab - Certificates of Completion (6 programs; 10% per program completion) |
60% |
| Case study analyses (4 case studies; 5% each) |
20% |
| Attendance and Class participation | 5% |
| Final Evaluation | 15% |
TABLE 2. LETTER
GRADE
WEIGHTING
CRITERIA
| Grade | Range |
| A+ | >=97.5% |
| A | 92.5% – 97.4% |
| A- | 89.5% – 92.4% |
| B+ | 86.5% – 89.4% |
| B | 82.5% – 86.4% |
| B- | 79.5% – 82.4% |
| C+ | 76.5% – 79.4% |
| C | 69.5% - 76.4% |
| D | 59.5% - 69.4% |
| F | <59.5% |
Class Calendar (Sample) (subject to revision - always use the latest version on Canvas)
| (Sample) | Lecture Content | Assignment Due | Grade Allocation | |
| 10/14 | Thu | Introduction and Overview | ||
| 10/21 | Thu | Philosophical Considerations of Ethics in Finance | ||
| 10/24 | Sun | n/a | Certificate of Completion: 1 Giving Voice to Values (GVV) for Investment Professionals | 10% |
| 10/28 | Thu | Case Study: Madoff Affair - write up | 5% | |
| 10/31 | Sun | n/a | Certificate of Completion: 2. Ethical Decision Making | 10% |
| 11/4 | Thu | Case Study: Goldman Sachs v/s SEC - write up | 5% | |
| 11/7 | Sun | n/a | Certificate of Completion: 3. Professionalism | 10% |
| 11/11 | Thu | |||
| 11/14 | Sun | n/a | Certificate of Completion: 4. Transparency and Disclosure | 10% |
| 11/18 | Thu | Case Study: Mini-Cases 1 and 2 - write up | 5% | |
| 11/21 | Sun | n/a | Certificate of Completion: 5. Trading and Analysis | 10% |
| 11/25 | Thu | Applications and Cases | Case Study: Mini-Cases 1 and 2 - write up | 5% |
| 11/28 | Sun | n/a | Certificate of Completion: 6. Interactions with Clients | 10% |
| 12/2 | Thu | Additional Cases and Course Review | ||
| 12/9 | Thu | FINAL Evaluation | FINAL Evaluation | 15% |
| Attendance and Class Participation | 5% | |||
| TOTAL | 100% |
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