Investment Management Course Syllabus--SPRING 2001

Common Finance Course Assessment Objectives for 28-334:

Students will be able to:

Course Goals and Objectives:

The goal of this course is for each student to develop a thorough understanding of investments. The requirements for this course provide the opportunity to learn how to make rational investment decisions.

 The specific objectives of this course are for each student to be able to:

  • Describe the current investment environment (domestic and international)
  • Obtain and interpret investment information from various sources (both traditional and electronic)
  • Analyze the various investment vehicles such as:
    • Common stock,
    Fixed income securities (e.g., bonds and preferred stock),
    Derivative securities (e.g., options and futures contracts), and
    Mutual Funds;
  • Develop and implement investment strategies for individuals and institutions;
  • Explain the operations of security markets by providing examples of investment transactions using real world information;
  • Evaluate, select and manage a portfolio that is consistent with an investor's financial objectives;
  • Relate financial theories of valuation (risk and return), portfolio management and efficient markets to current market conditions.

    • Required Materials: (1) Text: Hearth, Douglas and Janis Zaima. Third Edition, Contemporary Investments: Security and Portfolio Analysis, (Fort Worth, Texas: The Dryden Press, 2001).

    (2) Financial Press: As actual or potential business people, you will find it imperative to read business publications. As a minimum, you should read The Wall Street Journal. Several of the assignments and projects require you to cite current articles or security prices from the financial press.
       (3) Handout Materials and Materials found on web site: supplemental articles and readings will be distributed in class or via e-mail/web site during the semester.  Please check your e-mail prior to coming to class. I do require that you know how to check you e-mail at the university or that you provide me with an e-mail address that you do check regularly.

      (4) Financial Calculator: Your calculator should be able to make time value of money computations. The student is responsible for knowing how to use a financial calculator.

    COURSE EXPECTATIONS

     This course will emphasize the application of analytical methods to actual securities. Students who undertake this course will be expected to have a fundamental background in basic finance. A basic background in accounting and statistics is also expected. Course work will include projects and assignments which will require some familiarity with micro-computers and the use of spreadsheets. In addition, class members will need to acquire skills in obtaining data from electronic data bases and from the internet.


    Grading Criteria and Tentative Dates: Other Important dates:
               February 23rd:  No class in CC 45) (quiz in testing center on February 22 or 23rd)
                March 16th:  No class in CC 45 (Exam I in testing center on 3/15 or 3/16)
                April 13th:    No class in CC 45 (quiz in testing cener on 4/12 or 4/13)
               April 27th:  No class in CC 45 (Exam II in testing center on 4/16 or 4/27)
                There will be class on April 27th in CC45
                May 4th:  No class in CC 45 (Exam II in testing center on 5/3 or 5/4)

    Allocation of Letter Grades:
     
     A scores of 92 % or higher
    AB scores from 89% to 91%
    B scores from 82% to 88%
    BC scores from 79% to 81%
    C scores from 72% to 78%
    CD scores from 69% to 71%
    D scores from 60% to 68%
    F scores less than 60%


    Grading Policy

    If you do not agree with a grade that you receive, you have three-weeks from the posting of the grade to contest it. For the final course grade, you have three-weeks from the postmarked date on your semester grades to contest. After three-weeks, I will not be willing to spend time with you discussing your grade (unless you have a documented reason for not having a conference within the allotted period). I will post your grades on web page or on my office door during the semester. It is your responsibility to verify that the grades are correctly recorded.


    1. Examinations:  two exams are given during this course. A failing grade will be earned for a missed exam. NO MAKE-UP EXAMINATIONS ARE GIVEN. Requests to take the exam early because of a legitimate conflict should be made at least five week days prior to the scheduled exam date. The exams will consist primarily of objective questions similar to those in the pretest (if one was given).  During the exams you will be able to bring into the testing center:  a calculator, a foreign language dictionary (if needed) and  one page of notes on a 8.5"x11" piece of paper (front and back).  You can put anything on the page of notes.  The only rule is that the page of notes must be hand written. Computer generated or photocopied notes will be considered cheating and will earn a zero on the exam.  The page of notes is turned in with the exam with your name on the note page.

    2. Quizzes: Several short quizzes will be given during the semester.  Quizzes are designed to prepare students for the exam and to keep students up-to-date with material being covered in class. Students may be required to turn in an assigned homework problem to count as a quiz grade. There will be NO make-up quizzes for students not in class. Always bring your textbook, calculator, class notes, and a LEAD PENCIL to class. Quizzes may or may not be announced in classes prior to the quizzes.  Some quizzes may be taken using the internet.

    3. Assignments: Several assignments are required. The purpose of these assignments is to familiarize students with the following: financial press, available investment data, calculations of financial models, use of data available on the internet and the student's ability to predict stock market indexes. Five percentage points are deducted for each day an assignment is late. A more detailed description of each assignment is found below or in a separate handout. The following is a list of the assignments and tentative due dates.

    DO NOT PRINT THESE ASSIGNMENTS OUT UNTIL I ASSIGN THEM IN CLASS
    (I MAY MODIFY EXISTING ASSIGNMENTS OR ADD NEW ASSIGNMENTS)
    #1: Sources of Investment Information due on: February 2, 2001
    #2: WSJ Price Quotes (Stocks and Bonds) due on: February 16, 2001
    #3: Mutual Fund Information due on:  February 9, 2001
    #4: Finding Beta and Calculating Returns due TBA
    #5: Prediction of Level of the DJIA due TBA
    #6:Peer Reviewof Investment Strategy Project due on April 25,2001
    #7:
    #8:
    #9:
    #10:

    4. Projects: All final reports for each project are required to be typed. Detailed instructions for each project are found in separate handouts. A brief description of each project is found below. A. Investment Strategy Project is a paper written individually describing the recommended investment strategy for an individual who just inherited $100,000 (you will be assigned one of the three scenarios). This paper is required to be typed.  You will also review another students project (see assigment 6 above).

    B. Mutual Fund Portfolio Management.This is a group project (describe later) that requires that a portfolio of securities be selected based on a mutual fund strategy. Evaluation is not based on your portfolio return, but is evaluated on the implementation of the assigned strategy and the ability to discuss the portfolios performance. The project requires a typed report describing the strategy employed, the implementation of the strategy, an evaluation of the portfolio's performance and conclusions about managing a portfolio.
    5. Peer Evaluation on Group Project(s): Part of your grade for group project(s) will be determined by group members. Part of the group selection process and evaluation may be based off of a procedure similar to the CBS TV show Survivor.
    6. Class Requirements: The assignments, term projects, and questions/problems are used for the following: class discussion, illustration of important points, review for exams, and demonstration of investment management decisions. It is essential that you come to class prepared in order to obtain full benefit from the class discussions. You will be asked regularly throughout the semester to participate in the discussions concerning the class requirements and current investment news. Five percentage points are deducted for each day that a class requirement is past due.   Suggested end of the chapter  exercises review chapter material.   These suggested questions and problems can be found by clicking on the words 334 problems.
    7. Participation--Instructor's Professional Evaluation: Each student is responsible for the preparation of all required questions, problems, assignments and projects assigned for each class session. Further, relevant issues reported in the financial press (especially The Wall Street Journal) are considered required reading. Grades for participation are assigned by the professor on the basis of the student's ability to raise and/or respond to relevant issues which arise in the course of the class discussion. Participation in small group discussions is also a part of this grade. If class discussions are not at the level of my expectations, a point-per-question answered system will be implemented. Also, a lack of effort on the pretest or any other course requirement will be reflected in the participation grade. Twice during the semester you will turn-in a self evaluation.
    8. Review of quizzes and exams: Some of the testing instruments will not be reviewed in class or returned. However, your exam or quizzes will be available for review in my office. I assume that I have your permission to post your grades by a code of your choosing.
    9. Contact with me: As we proceed through the course, you may have difficulty and/or questions with some of the assigned course material. If you do not understand the material after it has been covered in class I encourage you to contact me during my office hours (or by appointment). E-mail will assure that I receive the message. Just send your message to my university account; i.e., HUFFMAN@uwosh.edu (please include 334 in the subject line).
    10. Citations: Several assignments and projects require that you properly cite sources of information. References to publications in the text should appear as follows: Brown and Warner (1985) report that . . . . At the end of the paper the complete list of references should be listed as follows or cites that are consistent with a style manual:

    Online style manuals

     For journal articles:

    Brown, S. and J. Warner. "Using Daily Stock Returns: The Case of Event Studies." Journal of Financial Economics, 14 (March 1985), 1-31. For magazines: Farrell, C. "Where Will Merger Mania Strike Next?," Business Week, Number 3138 (December 18, 1989), 32-33. For newspapers: Torres, C. "Leverage: Trading Firm's Hidden Asset," The Wall Street Journal (August 21, 1992) Midwest ed., C1-C2. For books: Smith, J., P. Doe, and D. Rose, Jr. References: A Guide to Format. (New York: Publishers, Inc., 1982). For contributions to collective works: Grossman, S. and O. Hart, "Corporate Financial Structure and Managerial Incentives," in J. J. McCall, ed.: The Economics of Information and Uncertainty (Chicago: University of Chicago Press, 1982). For information found on the World Wide Web (WWW)

    Structure
    Author. Title of item. [Online] Available http://address/filename, date of document or download.

    Examples
    DiStefano, Vince. Guidelines for better writing. [Online] Available http://www.usa.net/~vinced/home/better-writing.html, January 9, 1996.

    Yule, James. The Cold War Revisited: A Splintered Germany. [Online] Available http://usa.coldwar.server.gov/index/cold.war/countries/former.soviet.block/G/germany.html, November 5, 1996.

    For citing other internet sources such as e-mail or online images click here

    11. Footnotes in the text must be numbered and typed at the bottom of the page where the footnote is made or on a separate page following the text (i.e., endnote). A footnote or endnote should be used to clarify the text, define terms, make comments, or to list additional sources. Footnotes provide additional information that would detract from the subject being discussed in the body of the text.


      12. Plagiarism Policy: You are required to do your own work. If you use the ideas or writings or others as your own, then you are plagiarizing. Avoid plagiarism by properly citing sources of information. If it is determined that your work contains plagiarized material, then your work will not be graded and you will be subject to disciplinary procedures as described in the student handbook.

    13. Academic Integrity

    The University of Wisconsin Oshkosh is committed to a standard of academic integrity for all students. The system guidelines state: "Students are responsible for the honest completion and representation of their work, for the appropriate citation of sources, and for respect of others’ academic endeavors." (s. UWS 14.01, Wisconsin Administrative Code). Students are subject to disciplinary action for academic misconduct, which is defined in s. UWS 14.03, Wisconsin Administrative Code.


    Announcements

    TRAVEL TO EUROPE

    I also encourage you to consider enrolling in the International Business Study Tour (28-494). Watch for notices concerning informational meeting(s).  There is a tour planned for Germany, Italy, and the Czech Republic scheduled for the January 2002 interim.  Additional information can be found at:  http://www.uwosh.edu/colleges/coba/international/european.htm


    TRAVEL TO MEXICO CITY

     I am also planning to offer the Bbusiness Job Study tour to Mexico during spring break of 2002
    To see additional information for Mexico go to: http://www.uwosh.edu/colleges/coba/international/mexico.htm


    Travel to Japan
    There may also be a travel tour to Japan during the January 2002 Interim. Watch for additional information at http://www.uwosh.edu/colleges/coba/international/homepage.html or call Jenna Graff at 424-0185.
    CLUBS

    New club:  International Business Club
    For more information go to:  http://www.uwosh.edu/colleges/coba/international/homepage.html#International Business Club


    Students who are Juniors should be active in clubs related to their future careers. Clubs provide opportunities to meet and interact with business professionals. You have all heard of networking. Clubs provide an opportunity to network.   More information is available at http://www.uwosh.edu/organizations/fma/

    Some of the past FMA activities include:


    CAREER FAIR

    For information at  the  university career fair see http://www.tts.uwosh.edu/career


    INTERNSHIPS

    Watch the bulletin board outside the the Dean's Office (CC 151).  I also receive notices via e-mail that I will forward to you.


    Finance Scholarships

    There are about 10 scholarships available to finance majors.  Beginnng in Fall of 2000, graduating seniors will be eligible for receiving these awards.  Watch your mail for notices of scholarship deadlines. Scholarships are usually due in late October.


    Endowment Fund Manager Course

    This is a 1 credit Finance Seminar that will be offered each fall and spring semester.   Applications are available at the web site:  http://www.uwosh.edu/coba/community/faculty/endw-mngapp.htm.