BA 442/542 - Investments

Fall 2005

Sections 1 & 2

Tuesday-Thursday 10:00 a.m. – 11:50 a.m. & 2:00 p.m. - 3:50 p.m.

Room 416 at 10:00 and 323 at 2:00 Bexell Hall

Instructor: Professor Raymond M. Brooks

418B Bexell Hall

541-737-3687 and brooksr@bus.oregonstate.edu

Office Hours: Monday 2:00 p.m. – 3:00 p.m.

Wednesday 10:00 a.m. – 11:00 a.m.

Friday 2:00 p.m. – 3:00 p.m. Problem Session

Others by appointment (please call for appointment)

Required Text: Corrado and Jordan, Fundamentals of Investments, Irwin, 2000 third edition. Ready Notes for Fundamentals of Investment (optional).

Calculator: Highly recommend purchasing a TI BAII Plus Advanced Financial Calculator (cost around $30 to $35).

Course Objective: The objective of the course is to introduce students to the basic questions about buying and selling financial assets. The course will introduce the basic concepts of financial theory and applications of financial theory in use today. Students will be introduced to legal, ethical, technological, and global issues facing financial markets and the financial assets traded in these markets. The course is designed to enhance a student’s approach to financial decision-making and emphasizes technical analysis and quantitative approaches to investments and portfolio management.

Grading: Students will take three examinations during the course. Each individual will be part of a group. There will be four group assignments spaced throughout the course. Each group will turn in the group assignment as a unit. The examinations will be worth 100 points each. Group assignments will count for 50 points each. Total points available for the course are 500.

Academic

Dishonesty: Please review Academic Regulations number 15 in your schedule of classes.

Class Attendance: I expect students to be on time and present for every class. Good study habits and efficient management of time will translate into good work habits and responsible employees. If you cannot make an exam you need to notify me prior to the exam. Please leave a message on my phone or send me an e-mail message.

Course Outline

Date	Reading Assignment	Topic	Questions & Problems	Assignment/ Homework	Chapter Slides
Tue. Sep. 27^th		Introduction	Assign Groups
Thu. Sep. 29^th	Chapters 1 and 2	Brief History, Returns & Trading Securities	Chapter 1; 5 & 15 Chapter 2; 1, , 5, 7, 9, 11 & 26		Chapter 1 Chapter 2
Tue. Oct 4^th	Chapters 3	Security Types	Chapter 3; 1, 2, 9, 10, 11, & 14	S&P 500 Prediction	Chapter 3
Thu. Oct. 6^th	Chapter 4	Mutual Funds	Chapter 4; 5, 6, 7, 9, 13, & 21		Chapter 4
Tue. Oct. 11^th	Chapter 5	The Stock Market	Chapter 5; 14, 15, 16, &18		Chapter 5
Thu. Oct. 13^th	Chapter 6 & 8	Stock Valuation & Price Behavior	Chapter 6; 3, 5, 7, 10, 16, & 18	Stock Assignment Due	Chapter 6 Chapter 8
Tue. Oct. 18^th	Exam #1 Chapters 1 – 6 and 8
Thu. Oct. 20^th	Chapter 12	Security Market Line	Chapter 12; 5, 7, 8, 10, 11 & 12		Chapter 12
Tue. Oct 25^th	Chapter 9	Interest Rates	Chapter 9; 7, 8, 11, 13, &14		Chapter 9
Thu. Oct. 27^th	Chapter 10	Bond Valuation & Yields	Chapter 10; 3, 4, 7, 11, 16, & 18		Chapter 10
Date	Reading Assignment	Topic	Questions & Problems	Homework
Tue. . Nov. 1^st	Chapter 17	Corporate	Chapter 17; 9, & 10		Chapter 17
Thu. Nov. 3^rd	Chapter 18	Gov’t Bonds	Chapter 18; 11, 12, 15, and 17		Chapter 18
Tue. Nov. 8^th	Chapter 19	Mortgage-Backed Securities	Chapter 19; 3, 9, and 12		Chapter 19
Thu. Nov. 10^th	Chapter 11	Portfolio Management or Diversification	Chapter 11; 10, 11, 12, 13, and 14	Assignment Bonds Due	Chapter 11
Tue. Nov. 15^th	Exam #2 Chapters 9 -12 and 17 - 19
Thu. Nov. 17^th	Chapter 16	Futures	Chapter 16; Concept Questions 2, & 4; and Problems 1, 2, 3, & 5		Chapter 16
Tue. Nov. 22^nd	Chapter 16	Futures Cont.	Chapter 16; 11, 13, and 18
Thu. Nov. 24^th	Thanksgiving
Tue. Nov. 29^th	Chapter 14	Options	Chapter 14; 1, 2, 4, 5, 6, 7, & 10		Chapter 14
Thu. Dec. 1^st	Chapter 15	Options Pricing	Chapter 15; 3, 5, 6, 7, 11, 12, 13, & 14	Pick-up Final	Chapter 15
Fri. Dec. 2^nd				Assignment Futures and Options Due Due 4:00 p.m.
Wed. Dec. 7^th	Exam # 3 Chapters 14 -16			Turn-in Final by 4:00 p.m.