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POWERPOINT
SLIDES OTHER MATERIAL
BA 341
– Investments
Winter 2009
Women’s Building 205
Section 1: MW 8-9:50
Section 2: MW 10-11:50
INSTRUCTOR: Prem
Mathew
Bexell
424
737-6030,
prem.mathew@bus.oregonstate.edu
OFFICE HOURS : T 9 – 10 a.m., Th 9 – 10 a.m., F 11 – 12 p.m., or by
appointment
DESCRIPTION: This course provides students with an introduction
to the tools and concepts of security analysis and investments. Students will
be introduced to basic security types, including stocks, bonds, options and
futures, to their respective markets and to how these securities are traded. The
course will also provide students with an understanding of fundamental
valuation techniques and theory for stocks and bonds. The course will provide students with an
understanding of risk and return of securities within the context of a
portfolio.
PREREQUISITE: BA 340 or BA 360
MATERIALS: Jordan and Miller, Fundamentals
of Investments, Irwin, 2000 fourth edition.
BA
341 Reserve Material (Valley Library).
Power point slides will be
available by Sunday evening for the following week’s lectures. Students are
expected to bring these slides to class. These slides and other course
documents can be accessed through the COB course materials website at http://classes.bus.oregonstate.edu/ba341
and on Blackboard. Grades will be posted only on Blackboard.
CALCULATOR: I highly recommend purchasing
a Texas Instruments BAII Plus Financial Calculator (cost around $30 to $35).
TEXT WEBSITE: The text’s website can be
accessed through www.mhhe.com/jm4e.
GRADING: Your
final grade will be will be determined by the following weights.
Midterm Exam: 25%
Five Stock-Trak
Exercises: 3% each
Three Excel
Exercises: 4% each
Company Report:
15%
Final Exam: 33%
Homework assignments: Homework assignments will be provided to
prepare students for the midterm and final exams. When appropriate, in-class assignments will
also be provided. These assignments will not be graded.
Midterm and Final
Exams: Students that cannot make an exam
must notify me prior to the day of the exam.
The final exam will be non-cumulative.
.
Stock-Trak, Excel Exercises
and Company Report: The Stock-Trak, Excel exercises and company report will
allow students to apply some of the tools they obtain in the course. A more
detailed description of the requirements for these exercises will be provided
in class.
COURSE
OUTLINE: The following serves
as a tentative outline for the course.
All chapters listed will be covered to some extent, time
permitting. Please make note of the
midterm exam date. Students will only be
responsible for sections of chapters covered in class. The specific pages that you are responsible
for in each reading will be specified in the PP slides.
Wk. of Topic
Jan 5 Part 1: Introduction
Course
Introduction
A
Brief History of Risk and Return JM
1
Jan 12 Buying
and Selling Securities JM
2
Overview
of Security Types JM
3
Part 2: Stock Markets and Valuation
The
Stock Market JM
5
Jan 19, Feb 2 Common Stock Valuation JM
6, RM
Projecting
Cash Flow and Earnings JM 17
January 19th:
Martin Luther King Day
Feb 9 Part 3: Portfolio Management Introduction
Diversification and Risky
Asset Allocation JM
11
Return, Risk, and the
Security Market Line JM
12
Feb 16 Part 4: Bond Markets and Interest Rates
Corporate Bonds JM
18
Midterm: February 18
Feb 23 Government
Bonds JM
19
Bond
Prices and Yields JM
10
Interest
Rates JM
9
Mar 2 Mortgage-Backed
Securities JM
20
Part 5: Derivatives Markets
Futures
Contracts JM 14
Mar 9 Stock Options JM
15
FINAL EXAM: Section 1:
Tuesday, March 17th, 9:30
Section
2: Wednesday, March 18th, 9:30
______________________________________________________________________________
JM: Jordan and Miller. RM: Reserve Materials
CODE OF
CONDUCT/
ACADEMIC
HONESTY: For information about
academic integrity and the University's policies and procedures in this area,
please refer to the Student Conduct web site at: http://www.orst.edu/admin/stucon/achon.htm
and the section on Academic Regulations in the OSU Schedule of Classes. The
STUDENTS WITH
DISABILITIES: Accommodations are
collaborative efforts between students, faculty and Services for Students with
Disabilities (SSD). Students with accommodations approved through SSD are
responsible for contacting the faculty member in charge of the course prior to
or during the first week of the term to discuss accommodations. Students who
believe they are eligible for accommodations but who have not yet obtained
approval through SSD should contact SSD immediately at 737-4098.
ATTENDANCE
AND
CLASSROOM
ETIQUETTE: Although attendance will never formally be
taken, it is expected that students will attend every lecture and will be held
responsible for all materials covered in class. Students may use electronic
devices only for note-taking and other class purposes. Students are expected to
come to class on time.
COURSE
LEARNING
OUTCOMES: After completing the
course, students will be able to
·
Explain the operations of three distinct capital markets; the equity
markets, the bond market, and the derivatives market.
·
Demonstrate how to trade equity securities via current trading
mechanisms in the secondary markets, how to buy and sell on margin, and
short-sell securities.
·
Construct the different types of stock indices.
·
Conduct analysis of equity securities using fundamental valuation
techniques.
·
Describe the basics of fixed income securities, their markets, and the
roll of term structure of interest rates in their analysis.
·
Demonstrate the major trading activities in the futures market,
including hedging and speculating with futures contracts, marking-to-market
contracts daily and pricing boundaries of futures with arbitrage arguments.
·
Demonstrate the major trading activities in the options market,
including hedging and speculation with options.