Delaware State University College of Business Department of Accounting, Economics and Finance Fall 2010 Tentative Course Outline I. Course Course Number: MBA 641 Course Title: Investments and Portfolio Management Class Time: Wed: 6:00 p.m. 9:30 p.m Dover site Class Venue: BOA Room 206 II. Instructor: Dr. Nandita Das, CFA ndas@desu.edu Office: 212B, Bank of America Building Phone: 302-857-6940 III. Office Hours: Day Monday Tuesday Wednesday Thursday Time 3:00 PM to 4:00 PM 11:00 AM to 12:30 PM 3:45 PM to 5:45 PM 11:00 AM to 12:30 PM IV. Required Materials: Investments, 8th Edition, by Bodie, Kane, and Marcus, McGraw-Hill/Irwin, 2009. Book for book report. Please refer to the book list Other reading materials (articles, newspaper reports, and the like) will be distributed when appropriate. Students are also encouraged to read business newspapers, such as The Wall Street Journal, magazines, and online materials. Financial Calculator: Students must have a financial calculator that is able to do the following calculations PV (present value), FV (future value), NPV (net present value), and IRR (internal rate of return). Computer Skills: Students must be proficient in using basic word processing and spreadsheet software. Some assignments require the use of Microsoft Excel. V. Content Objective To provide a comprehensive introduction to investments. To provide an understanding of the basic types of investments, asset valuation, risk management, and portfolio construction and performance evaluation To understand the analytical techniques used for the evaluation of financial assets Increase the students understanding of practical issues in portfolio management.
VI. VII. Competency Objective To calculate the expected return and risk of assets and portfolios To calculate the typical measures of risk and return used for selection of financial securities To understand the capital asset pricing model To calculate initial and maintenance margin To develop an understanding of different types of mutual funds and their fee structure To understand the benefits of diversification To understand the major asset pricing models and their implications to investors To understand the concept of market efficiency. To be able to calculate performance measures for a portfolio. To understand the futures and options contracts, the markets in which they trade and their applications to portfolio management. To understand the techniques used by investors and managers to analyze financial statements. Method of Instruction The method of instruction involves the use of web technology, lectures, class discussions, case studies, and experiential exercises. Students are expected to read materials prior to their introduction in class. Students will be required to complete exercises assigned from the text and other sources, including the Internet and the university library. Students are expected to complete such assignments in a timely manner and to be prepared to lead and/or participate in class discussion related to these exercises. VIII. Method of Evaluation IX. Grades will be based on points earned in the following categories: Item Grade Percentage Discussion Board 10% Chapter-end Multiple Choice Quiz 5% Assignment (six in number)* 15% Online Quizzes (three in number)* 20% Book Review** 10% Project** 15% Final Examination 25% * Lowest grade will be dropped **Details will be provided in the class Students with Special Needs If you are a student that needs special accommodations to facilitate learning, please inform me of this promptly so that we can work together from the beginning of the semester. X. Attendance and Academic Honesty Academic honesty is expected inside and outside of this class. Academic misconduct will not be tolerated. Please refer to the DSU student handbook for a detailed description of academic misconduct. Any misconduct may result in the maximum penalty set by Delaware State University.
XI. Course Schedule This course runs from October 27 to December 15 ** Students are responsible for all assignments in this Course Schedule ** Topics / Readings / Resources Week 1 Dates: October 27 November 2 Investment Environment and Instruments Readings: BDM: CH. 1 & 2 Chapter 1 Slides and Chapter 2 Slides Week 2 Dates: Nov 3-Nov 9 Stock Trading and Mutual Funds BDM: CH. 3 & 4 Chapter 3 Slides and Chapter 4 Slides Deliverables Post your introduction/bio to the introductions conference by October 27th. Ch 1: 1, 2 and S&P problem Ch 2: problem 14, 15 & 17 Work on Chapter 1 Quiz and Chapter 2 Quiz and email me the Ch 3: Ch 4: Work on Chapter 3 Quiz and Chapter 4 Quiz and email me the November 9th
Week 3 Dates: Nov 10 - Nov 16 Topics: Capital Allocation/Optimal Risky Portfolio BDM: CH. 6 & 7 Chapter 6 Slides and Chapter 07 Slides Week 4 Dates: Nov 17 - Nov 23 Topics: CAPM and Efficient Market Readings: BDM: CH. 9 & 11 Chapter 9 Slides and Chapter 11 Slides Week 5 Dates: Nov 24 - Nov 30 Bond and Stock Valuation BDM: CH. 14 & 18 Chapter 14 Slides and Chapter 18 Slides Ch 6: Ch 7: Work on Chapter 6 Quiz and Chapter 7 Quiz and email me the Ch 9: Ch 11: Work on Chapter 9 Quiz and Chapter 11 Quiz and email me the November 23rd Ch 14: Ch 18: Work on Chapter 14 Quiz and Chapter 18 Quiz and email me the
Week 6 Dates: Dec 1 Dec 7 Bond and Stock Valuation BDM: CH. 20 & 22 Chapter 20 Slides and Chapter 22 Slides Week 7 Dates: Dec 8 Dec 15 FINAL EXAM The final exam is comprehensive Ch 9: Ch 11: Work on Chapter 20 Quiz and Chapter 22 Quiz and email me the December 7