Southern
Connecticut State University
Department of Economics and Finance
Fall 2010
| COURSE
NUMBER: |
MBA
573 |
| COURSE
TITLE:
|
INVESTMENT
ANALYSIS |
| COURSE
DESCRIPTION: |
A study of investment portfolio theory
and assset pricing models which will help the student acquire the
analytical skills to conduct valuations of equities and fixed income
securities. Topics will include: overview of the investment decision-making
process, valuation of equities and fixed income securities, efficient
market theory, diversification, optimal portfolio analysis, risk
and return, CAPM, APT. |
| PREREQUISITES: |
MBA
503 |
| PROFESSOR: |
Dr.
Robert M. Eldridge. Seabury Hall 304
Tel: (203) 876-5046 (H);
(203) 392-5628 (O)
Fax: (203) 392-5254/5863
Email: eldridger1@southernct.edu |
| OFFICE
HOURS: |
Mon:1400
- 1630
Tues: 1500-1600
Wed: 1500 - 1630
or by appointment. |
| CLASS
HOURS: |
Mon
1700 - 1930 EN A113 |
| MATERIALS: |
1.
"Investments", Levy and Post; New York: Prentice Hall.
2005 .
2.
Subscription to the Wall St Journal
3.
Your MBA 503 text |
| COURSE
OBJECTIVES: |
This
course establishes a foundation in the analysis of securities and
the creation of portfolios of equity and fixed income securities.
To complement the theory, the student will ah ve the opportunity
to participate in a competition using play money but real prices. |
| INSTRUCTION: |
The
course will consist of lectures, the use of OTIS software and readings
from the Wall
St Journal and other sources. |
| METHOD
OF ASSESSMENT: |
1.
3 exams @ 20% =
2. 9 papers
3. "Two minute drills" =
4. Participation and attendance =
5. Ethics questions = |
60%
25%
10%
03%
02% |
| SPECIAL
NOTES: |
1.
"Two minute drills". At the end of each class there will
be a one question quiz lasting two minutes. I will count only the
top 10 grades. This will constitute 10% of the course grade.
2. At the end of the course the student will be requested to complete
a "Course Survey" form, separate and distinct from any
University Evaluation form. This survey helps me in preparing the
course for the next time it is offered. For each form returned,
1/n points will be added to the final grade, where "n"
represents the number of students enrolled in the course based on
the registrar's final class list.
3. The student is permitted and encouraged to tape record lectures
for personal study use only.
4. If any student has a particular disability-related need in order
to participate in this course, such as special seating, note-taking
assistance, use of tape recorders or modified exam conditions you
will need to visit the Disability Resource Office, EN C105A, to
arrange for approved accommodations. If you have other information
you wish to share with me such as emergency medical information,
or arrangements in case the building has to be evacuated, please
tell me as soon as possible.
5. It is recommended that you form yourselves into study groups
for the purpose of doing the homework problems.
6. Cell phones and audible pagers MUST BE TURNED OFF during class
unless the permission of the instructor has been obtained in advance.
Failure to comply will result in a failing grade for the class.
|
| PAPERS: |
1) 1-2 pages. In this paper you will
lay out your investment objectives (income, capital gains); the
investment style you will follow (growth securities, value securities),
and your investment horizon (which should be tied to your objectives).
Each element above (objective, style and horizon) should include
a ratioanle. Finally, discuss hyour levelo of risk tolerance at
this current time.
2) 1-2 pages. In this paper you will establish the allocation
of assets by percentages accompanied by a rationale. Show how
this allocation will support your objective, style and horizon
of paper 1.
3) 1-2 pages. In this paper you will establish the benchmarks
by which your portfolio will be measured. Include a benchmark
for measuring both equity and fixed income holdings. Provide a
rationale for your selections.
4) - 8) 2-4 pages each. These papers will report the results
of investing in your portfolio, the results of the benchmarks
and an explanation of the results. Pay particular attention to
news reports that affect either the markets as a whole, specific
stocks/fixed income securities or economic sectors.
9) 3-4 pages. A final report on your portfolio results.
SPECIAL NOTE: There will be a prize for the top three portfolios
created starting 22 Sept. Portfolios will be judged on (1) adherence
to stated asset allocation objectives; (2) conformance to stated
objectives and style. The prizes are separate from the grades
on the 9 papers.
Some assistance:
www.finance.yahoo.com
Go to "stock research" screener
Launch Yahoo Finance Stock Screener
or
Large Cap Value
or
Bargain Growth
|
| EXPECTATIONS: |
A.
What you may expect from me:
1.
A strong grounding in International Finance.
2. A willingness to work with you on specific problems you have
with the course or scheduling.
3. A sense of excitement about the field of finance.
B.
What I expect of you:
1.
Come to class prepared by having read the assigned materials
and done any outside work assigned.
2. If you know that you will miss a class, a call to me would
be appreciated.
3. If something does not make sense in the course, you will
ask me either in class, in office hours or call me at home.
4. A sense of what is going on in the world of business and
finance through a daily reading of The Financial Times.
C.
Profile for success or failure. If you go into an exam behind
in the reading and not up with the class discussions or any assigned
homework, you probably will not be successful. If, on the other
hand, you have done the reading and homework and been faithful
in attendance, you should have no problem with any exam you get
from me. |
| |
|
ASSIGNMENT
SCHEDULE
Subject to modification based on class progress, at the discretion of
the instructor
| DATE |
TOPIC |
CHAPTERS |
ACTIITIES |
REMARKS |
| Aug
30 |
Introduction. the investment environment |
1,2 |
Review OTIS |
OTIS TEST starts |
| Sept
13 |
Security Markets. Regulatory issues. Ethics |
3,5 |
|
Paper 1 due |
| Sept
20 |
Economic analysis. Corp financial analysis |
17,16 |
|
Review MBA503 financial analysis. Paper 2 due. |
| Sept
27 |
Rate of return. Indices |
6 |
Exam I. |
Paper 3 due. 24 Sept OTIS TEST ends. OTIS LIVE starts. |
| Oct
4 |
Mean/variance analysis |
8 |
|
|
| Oct
11 |
Efficient Market Hypothesis |
12 |
|
Paper 4 due |
| Oct 18 |
CAPM |
10 |
|
|
| Oct
25 |
APT |
11 |
|
Paper 5 due |
| Nov 1 |
Stock valuation and selection |
15 |
|
|
| Nov
15 |
Intgerest rates and Bond valuation |
13 |
Exam II |
Paper 6 due |
| Nov
22 |
Bond analysis and management |
14 |
|
|
| Nov
29 |
Portfolio analysis |
7 |
|
Paper 7 due |
| Dec
6 |
Portfolio diversification |
9 |
|
OTIS ends at 1600 7 Dec.
Papers 8,9 due |
| Dec
13 |
Final Exam |
|
1945-2145 |
|
No class 8 Nov. I am at a conference. The class will be made up 10 Dec 2010. |
|