FIN 377 - Investments

Chapter 1

Ethics Readings

Week 1

Topic 0

Topic 1

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)

None

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

Week 2

Topic 0

Topic 1

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)

None

Labor Day, Monday, 9/1, No Classes

Chapter 1

Ethics Readings

Week 3

Topic 0

Topic 1

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)

MindTap Assignment, Chap.1, Due: Sunday, 9/14 (MindTap assignments are in D2L.)

Group AI Assignment 1, Due: Sunday, 9/14 (Submit the Group AI assignments in D2L.)

None

Chapters 3, 5.1

Week 4

Topic 2

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)

MindTap Assignment, Chap.3, Due: Sunday, 9/21

None

Here are instructions and examples for the project: Project Instructions.

In creating the Excel spreadsheet, your group is required to follow these guidelines: Excel Guidelines.

To complete the project, you will need to access data from S&P CapitalIQ. Here is a brief introduction to the database: CapIQ Intro (mp4, 27:36).

For more information on using the database, see: CapitalIQ Resource Page.

Microsoft Teams: Your group could set up a Microsoft Teams Site for the project. It allows your group to communicate, post documents, and, probably most importantly, edit common documents, such as Excel. Information (Info).

Chapter 2

Week 5

Topic 3

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)

MindTap Assignment, Chap.2, Due: Sunday, 9/28

None

Chapter 6

Week 6

Topic 4

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)

Group AI Assignment 2, Due: Sunday, 10/5

None

Chapter 6

Week 7

Topic 4

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)

MindTap Assignment, Chap. 6, Due: Sunday, 10/12

Improvement Day, Tuesday, 10/8, No Classes

Chapter 7

Week 8

Topic 5

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, 18:47)

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

None

Exam 1 (through CAPM), Friday, 10/17

Exam 1 Review Slides

Exam 1 Study Guide

Chapter 7

Week 9

Topic 5

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)

MindTap Assignment, Chap.7, Due: Sunday, 10/26

Group AI Assignment 3, Due: Sunday, 10/26

None

Chapters 12, 13.1

Week 10

Topic 6

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)

None

None

Chapters 12, 13.1

Week 11

Topic 6

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

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

MindTap Assignment, Chap.12, Due: Sunday, 11/9

Spring/Summer Registration Begins, Monday, 11/3

Chapter 8

Week 12

Topic 7

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)

Group AI Assignment 4, Due: Sunday, 11/16

Veteran's Day, Monday, 11/11, No Classes

Chapter 8

Week 13

Topic 7

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)

MindTap Assignment, Chap.8, Due: Sunday, 11/23

None

Chapter 14

Week 14

Topic 8

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)

None

Fall Break/Thanksgiving, 11/26-28, No Classes

Chapter 14

Week 15

Topic 8

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)

MindTap Assignment, Chap.14, Due: Sunday, 12/7

Group AI Assignment 5, Due: Sunday, 12/7

Project, Due: Sunday, 12/7 (Submit the Project in D2L.)

For the date and time of Exam 2/Final Exam, see the Registrar's webpage.

Exam 2 Review Slides