Study Guide

Topics: Capital asset pricing model, Financial market, Investment Pages: 6 (2277 words) Published: October 26, 2014
Course Syllabus
MINNESOTA STATE UNIVERSITY MANKATO
COLLEGE OF BUSINESS
DEPARTMENT OF FINANCE

FINA 460 - Investments
Fall 2014, INSTRUCTOR: HYUNA PARK

SECTION 01 – MONDAY and WEDNESDAY – 9:30 AM to 10:45 AM – MH208 SECTION 02 – MONDAY and WEDNESDAY – 12:30 AM to 1:45 PM – AH205 Office Hours in MH 259
Mondays and Wednesdays 10:50 – 11:20 AM and 1:50 – 3:10 PM Online Office Hours Using Skype or GoToMeeting
Tuesdays 9:00 AM – 12:00 PM and 1 – 4:30 PM

Office
Hours

My Skype name is hyuna.park1. If you want to use my Skype office hours, send me an e-mail at least 24 hours in advance including i) your Skype name and ii) the time when you want me to call you. GoToMeeting option will also be available and the instruction will be posted on D2L.

e-mail

hyuna.park@mnsu.edu

Objectives
FINA 460 is a demanding course, but serious students will learn a lot about making good investment decisions. However, you should note that “Investments do not translate into how to make a killing in the stock market.” Financial market history strongly suggests that no approaches to investing are simultaneously i) easy to apply, ii) legal, and iii) consistently successful. If successful investing were easy, we would all be rich. We should start with realistic expectations, and knowing what to avoid is as important as knowing what to do. You should also note that FINA 460 covers theoretical topics such as the modern portfolio theory and efficient market hypotheses as well as practical aspects of investing. Those theories may not provide a great practical investment value, but these topics provide useful background information. This course emphasizes a quantitative and problem-solving approach to enable you to understand the following; •



investment terminology and investment environment;
 knowledge of the capital market and its process, the role of stock exchanges and bond markets in allocating capital, and trading practices in the investment process; also distinguish between bid/ask prices, different underwriting methods and specific types of orders, and primary/secondary markets

risk-return trade-off, capital allocation, and portfolio management strategies in terms of modern portfolio theory
 measuring expected return, total risk and systematic risk, evaluating the risk-adjusted performance of various investments, and understanding the role of market efficiency
 fund allocation based on investor preference and investor opportunities by using equilibrium pricing models; distinguish between active and

1

passive management strategies, such as indexing and immunization •




the concepts and basic techniques of valuation and fundamental analysis, and technical analysis;
 stock and bond valuation using present value models
 utilizing accounting information for comparing stock
 understanding the term structure of interest rates, forward rates, duration and convexity, and applying the concepts to bond portfolio management overview of derivative securities;
 understanding the nature of options and futures contracts and their use in either a speculative or hedging strategy
understanding legal, ethical and global issues in the financial markets.  regulations and ethical issues in financial markets supplemented by readings from the Wall Street Journal and other business literature

Prerequisites
FINA 362 (Business Finance)
Course Materials


Textbook: Custom-ordered text (ISBN: 9781121899551) that can be purchased in university-affiliated bookstores. It is made of chapters taken from Essentials of Investments, 9th Edition, Bodie, Kane, and Marcus. The Connect access code that is included in the custom-ordered textbook is required to take this course. I will call the textbook BKM.



Financial calculator: Bring your financial calculator to class. Read the manual if you are not familiar with the functions of your calculator. You cannot take exams of this class without bringing your...
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