BA 442/542 - Investments

Sections 1 and 2

Fall 2006

Instructor: Professor Raymond M. Brooks

418B Bexell Hall

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

Office Hours: Monday 3:00 p.m. to 4:00 p.m.

Tuesday 1:00 p.m. to 2:00 p.m.

Wednesday 11:00 a.m. – Noon.

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 two 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 150 points each. Group assignments will count for 50 points each. Total points available for the course are 500.

Academic

Honesty: 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.

BA 442/542 – Investments

Sections 1&2

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

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

Fall 2006 - Course Outline

Date	Reading Assignment	Topic	Questions & Problems	Assignment/ Homework
Tue. Sep. 26^th		Introduction CFA, Finance Club, & Financial Planning	Assign Groups
Thu. Sep. 28^th	Chapters 1 and 2	Brief History, Returns & Trading Securities	Chapter 1; 5 & 15 Chapter 2; 1, , 5, 7, 9, 11 & 26
Tue. Oct 3^rd	Chapters 3	Security Types	Chapter 3; 1, 2, 9, 10, 11, & 14	S&P 500 Prediction
Thu. Oct. 5^th	Chapter 4	Mutual Funds	Chapter 4; 5, 6, 7, 9, 13, & 21
Tue. Oct. 10^th	Chapter 5	The Stock Market	Chapter 5; 14, 15, 16, &18
Thu. Oct. 12^th	Stock Assignment	Gather Data
Tue. Oct. 17^th	Chapter 6 & 8	Stock Valuation & Price Behavior	Chapter 6; 3, 5, 7, 10, 16, & 18 Chapter 8
Thu. Oct. 19^th	Chapter 12	Security Market Line	Chapter 12; 5, 7, 8, 10, 11 & 12	Stock Assignment Due
Tue. Oct 24^th	Chapter 9	Interest Rates	Chapter 9; 7, 8, 11, 13, &14
Thu. Oct. 26^th	Chapter 10	Bond Valuation & Yields	Chapter 10; 3, 4, 7, 11, 16, & 18
Date	Reading Assignment	Topic	Questions & Problems	Homework
Tue. Oct. 31^st	Exam #1	Chapters 1-10 plus 12 (minus 7)
Thu. Nov. 2^nd	Chapter 17	Corporate Bonds	Chapter 17; 9, & 10
Tue. Nov. 6^th	Chapter 18	Gov’t Bonds	Chapter 18; 11, 12, 15, and 17
Thu. Nov. 8^th	Chapter 19	Mortgage-Backed Securities	Chapter 19; 3, 9, and 12
Tue. Nov. 14^th	Chapter 11	Portfolio Management or Diversification	Chapter 11; 10, 11, 12, 13, and 14	Assignment Bonds Due
Thu. Nov. 16^th	Chapter 16	Futures	Chapter 16; Concept Questions 2, & 4; and Problems 1, 2, 3, & 5
Tue. Nov. 21^st	Chapter 16	Futures Cont.	Chapter 16; 11, 13, and 18
Thu. Nov. 24^th	Thanksgiving
Tue. Nov. 28^th	Chapter 14	Options	Chapter 14; 1, 2, 4, 5, 6, 7, & 10
Thu. Nov. 30^st	Chapter 15	Options Pricing	Chapter 15; 3, 5, 6, 7, 11, 12, 13, & 14
Fri. Dec. 1^st				Assignment Futures and Options Due
Thu. Dec. 7^th 9:30 a.m. or Fri. Dec 8^th 7:30 a.m.	Exam # 2 Chapters 14 -19 plus 11	Tues @ 10 a.m. Dec 7^th Tues @ 2 p.m. Dec 8^th

Students should read the assigned chapter and attempt all assigned class problems prior to class. Homework will be due at the beginning of class.