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BA341 – Investments
Winter 2010
Section 1: MW 8-9:50
Section 2: MW 10-11:50
Section 3: TTh 8-9:50
INSTRUCTOR: Prem
Mathew
Bexell
424
737-6030,
prem.mathew@bus.oregonstate.edu
OFFICE HOURS: T
10 – 11 a.m., Th 10 – 11 a.m., F 1:15 – 2:15 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, 2009 fifth 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 as well as grades can be accessed through 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
http://highered.mcgraw-hill.com/sites/0073382353/student_view0/index.html.
GRADING: Your
final grade will be will be determined by the following weights.
Midterm Exam: 27%
Five Stock-Trak
Exercises: 3% each
Two Exercises:
4% each
Company Report:
15%
Final Exam: 35%
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.
Exercises and Company
Report: The 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 Readings
Part
1: Introduction
Jan 4 Course Introduction
A Brief History of Risk and Return JM
1
Jan 11 Buying
and Selling Securities JM
2
Part 2: Stock Markets and Valuation
Overview
of Security Types JM
3
The Stock Market JM
5
Jan, 18, Jan 25,
Feb 1 Common
Stock Valuation JM
6, RM
Projecting
Cash Flow and Earnings JM
17
January 18th: Martin Luther King Day
January 19th: No Class
Part 3: Portfolio Management Introduction
Feb 8 Diversification
and Risky Asset Allocation JM
11
Return, Risk, and the
Security Market Line JM
12
Mutual Funds JM
4
Section 1 and 2 midterm: February 10
Section
3midterm: February 11
Part 4: Bond Markets and Interest Rates
Feb 15 Overview
of Security Types JM
3
Corporate Bonds JM
18
Feb 22 Government Bonds JM
19
Bond
Prices and Yields JM
10
Interest
Rates JM
9
Part 5: Derivatives Markets
Mar 1 Overview
of Security Types JM
3
Futures Contracts JM
14
Mar 8 Stock
Options JM
15
FINAL EXAM: All Sections:
Wednesday, March 17th, 8:00 p.m.
Location:
TBD
______________________________________________________________________________
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.