FIN 377: Investments

Larry Schrenk, Instructor

Schedule and Supplements

Topic Number

Date

Topics

Readings

(Available in D2L)

Part I: Financial Markets

1

(Top)

Week 1

1/11-1/17

The Investment Setting and Financial Ethics

Slides: Topic 0 and Topic 1

Course Videos (Required):

NOTE: Topic 0 slides will be covered in class.

1.1: What is an Investment? (S 1-10, 13:36)

1.2: Measures of Return and Risk I (S 11-26, 28:07)

1.3: Measures of Return and Risk II (S 27-35, 17:01)

HINT: Many video players allow playback at different speeds. I often listen to lectures or webinars at 1.25x or 1.5x, but this may not work well for more technical material. 

NOTE: All end-of-chapter problem solutions are available in D2L.

If you would like some review of probability and statistics, have a look at these (optional) videos:

Ethical and Professional Standards Readings (Download Link in Right Column)

  • Reading 1: Ethics and Trust in the Investment Profession by Parmar, Kelly, and Stevens

  • Reading 2: Code of Ethics and Standards of Professional Conduct Standards of Practice Handbook, Eleventh Edition

  • Reading 3: Guidance for Standards I–VII Standards of Practice Handbook, Eleventh Edition

  • Reading 4: Introduction to the Global Investment Performance Standards (GIPS)

  • Reading 5: Global Investment Performance Standards (GIPS)

NOTE: You are not expected to read all the ethics assignments. For the purpose of this course you should know the general principles and themes in them. I include the full readings because I am committed to the importance of ethics in finance and want all students who take my investment course to have access to them.

 

Chapter 1,

Ethics Readings

(See note on ethics readings under Week 1)

 

Week 2

1/18-1/24

The Investment Setting and Financial Ethics

Slides: Same  

Course Videos (Required):

1.4: Rates of Return I (S 36-43, 18:26)

1.5: Rates of Return II (S 44-54, 26:03)

1.6: Risk and Uncertainty I (S 55-60, 15:30)

1.7: Risk and Uncertainty II (S 61-70, 20:06)

Week 2 Break-Out Session: Slides | Spreadsheet

MLK Day, Monday, 1/18, No Classes

  

Chapter 1,

Ethics Readings

(See note on ethics readings under Week 1)

 

 Week 3

1/25-1/31

 The Investment Setting and Financial Ethics

Slides: Same  

Course Videos (Required):

1.8: Determinants of Rates of Return (Inflation) I (S 71-89, 27:46)

1.9: Determinants of Rates of Return (Risk Premium) II (S 90-98, 20:17)

1.10: Relationship between Risk and Return (S 100-111, 24:26)

1.11: Financial Ethics (S 112-127, 19:36)

Week 3 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 2/7 (MindTap Assignments are in D2L.)

 

Chapter 1,

Ethics Readings

(See note on ethics readings under Week 1)

 

 2

(Top)

Week 4

2/1-2/7

Organization and Functioning of Securities Markets

Slides: Topic 2

Course Videos (Required):

2.1: What is a Market? (S 1-7, 14:50)

2.2: Efficient Markets (S 8-12, 25:39)

2.3: Organization of the Securities Market (S 13-26, 27:23)

2.4: Primary and Secondary Markets (S 27-42, 18:37)

2.5: Market Orders (Buying on Margin and Short Sales) (S 43-46, 10:36)

Week 4 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 2/14

Project Instructions

Excel Guidelines

 

 Chapter 3, 5.1

 3

(Top)

Week 5

2/8-2/14

 Asset Allocation and Security Selection

  Slides: Topic 3

Course Videos (Required):

3.1: Investment Management I (S 1-16, 23:40)

3.2: Investment Management II (S 17-24, 15:42)

3.3: Investment Management III (S 25-33, 12:58)

3.4: Global and Alternative Investments (S 34-50, 20:35)  

Week 5 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 2/21

Spring Break Day, Wednesday, 2/10, No Classes

      Today’s Breakout Session Will Meet on Friday. 

 

 Chapter 2

  Part II: Portfolio Management  

4

(Top)

Week 6

2/15-2/21

 Introduction to Portfolio Management I

Slides: Topic 4

Course Videos (Required):

4.1: Some Background Assumptions (S 1-8, 12:36)

4.2: Diversification (S 9-35, 22:43)

4.3: Markowitz Portfolio Theory I (S 36-59, 17:31)

4.4: Markowitz Portfolio Theory II (S 60-61, 20:45)

4.5: Markowitz Portfolio Theory III (S 62-67, 22:47)  

Week 6 Break-Out Session: Slides | Spreadsheet

Assessment Day, Tuesday, 2/16, No Classes

 

Chapter 6

 

Week 7

2/22-2/28

Introduction to Portfolio Management II

Slides: Same

Course Videos (Required):

4.6: The Efficient Frontier I (S 68-75, 19:45)

4.7: The Efficient Frontier II (S 76-78, 15:17)

4.8: Capital Market Theory I (S 79-83, 20:39)

4.9: Capital Market Theory II (S 84-99,24:13)  

Week 7 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 3/7

 

Chapter 6

5

(Top)

 Week 8

3/1-3/7

 Asset Pricing Models I

        Slides: Topic 5

Course Videos (Required):

5.1: The Capital Asset Pricing Model I (S 1-11, 20:55)

5.2: The Capital Asset Pricing Model II (S 12-27, 25:19)

5.3: Empirical Tests of the CAPM (S 28-38, 1847)

5.4: The Market Portfolio: Theory versus Practice (S 39-43, 7:02)

        Week 8 Break-Out Session: Slides | Spreadsheet

        Exam 1, Friday 3/5 (through CAPM) Exam 1 Review Slides

 

 Chapter 7

 

Week 9

3/8-3/14

Asset Pricing Models II

        Slides: Same        

Course Videos (Required):

5.5: Arbitrage Pricing Theory (S 44-60, 28:48)

5.6: Multifactor Models and Risk Estimation (S 61-79, 23:36)

5.7: Appendix: Multiple Regression in Excel (S 80-90, 13:43)   

Week 9 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 3/21

Student Break Day, Tuesday, 3/9, No Classes

 

Chapter 7

  Part III: Investment Vehicles  

6

(Top)

Week 10

3/15-3/21

Bond Fundamentals and Valuation I

         Slides: Topic 6

 Course Videos (Required):

6.1: Basic Features of a Bond (S 1-13, 25:51)

6.2: The Global Bond Market Structure (S 14-21, 20:40)

6.3: Survey of Bond Issues (S 22-33, 21:28)

6.4: Bond Yield Curves (S 34-42, 19:08)

6.5: Implied Future Interest Rates (S 43-52, 28:35)

Week 10 Break-Out Session: Slides | Spreadsheet

    

Chapter 12, 13.1
 

Week 11

3/22-3/28

Bond Fundamentals and Valuation II

Slides: Same 

Course Videos (Required):

6.6: Bond Valuation and Yields (S 53-67, 26:56)

6.7: Bond Analysis Tools (S 68-88, 30:17)

Week 11 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 4/4

 

Chapter 12, 13.1

 7

(Top)

Week 12

3/29-4/4

 Equity Valuation I

Slides: Topic 7

Course Videos (Required):

7.1: Important Distinctions (S 1-13, 16:56)

7.2: Discounted Cash Flow, Introduction (S 14-27, 27:24)

7.3: Discounted Cash Flow, No Growth and Constant Growth Models (S 28-50, 31:51)

7.4: Discounted Cash Flow, Mixed Models (S 51-65, 26:54)

Week 12 Break-Out Session: Slides | Spreadsheet

Student Break Day, Wednesday, 3/31, No Classes

     Today’s Breakout Session Will Meet on Friday. 

  

 Chapter 8

   Week 13

4/5-4/11

 Equity Valuation II

Slides: Same

Course Videos (Required):

7.5: Free Cash Flow to Equity (FCFE) (S 66-81, 31:12)

7.6: Free Cash Flow to Firm (FCFF) (S 82-94, 22:43)

7.7: Relative Valuation (S 95-110, 25:25)

7.8: Ratio Analysis and Financial Statements (S 111-126, 23:07)

Week13 Break-Out Session: Slides | Spreadsheet

MindTap Assignment: Due 4/18

Fall Registration Opens, Monday, 4/5

  

Chapter 8

8

(Top)

Week 14

4/12-4/18

 An Introduction to Derivative Markets and Securities I

Slides: Topic 8

Course Videos (Required):

8.1 Overview of Derivative Markets I (Futures/Forwards) (S 1-13, 17:56)

8.2 Overview of Derivative Markets II (Futures/Forwards) (S 14-17, 10:31)

8.3 Overview of Derivative Markets III (Options) (S 18-28, 18:22)

8.4 Investing with Derivative Securities I (Futures/Forwards) (S 29-35, 12:45)

         Week14 Break-Out Session: Slides | Spreadsheet       

Student Break Day, Friday, 4/16, No Classes

  

Chapter 14

 

Week 15

4/19-4/25

An Introduction to Derivative Markets and Securities II

Slides: Same

Course Videos (Required):

 8.5 Investing with Derivative Securities II (Options) (S 36-37, 19:21)

8.6 Investing with Derivative Securities III (Options) (S 38-46, 16:14)

8.7 Relationship between Forward and Option Contracts I (S 47-60, 14:44)

8.8 Relationship between Forward and Option Contracts II (S 47-60, 11:35

8.9 Introduction to Derivatives in Portfolio Management (S 61-73, 19:27)

Week15 Break-Out Session: Slides | Spreadsheet

MindTap Assignment:  Due 4/25

     NOTE: The MindTap Assignment due date is much earlier than usual.

Project:  Due 4/25

 

Chapter 14

 

 

Exam 2/Final Exam

  Date: See Registrar's Website Exam 2 Review Slides