Download Standard Course Outline FIN 450 Portfolio Analysis 1. General

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Standard Course Outline
FIN 450
Portfolio Analysis
1. General Information:
Units: 3 credits
Prerequisites: FIN 350.
SCO prepared by: Professor Peter Ammermann
Date Prepared: March 2016
2. Catalog Description:
Microcomputer technology to perform security analysis including bonds and the bond
market, stocks and the stock market, security valuation, fundamental and technical analysis,
portfolio management and risk-reward relationships. Microcomputer software programs that
perform security analysis and portfolio management using numerous databases.
Letter grade only (A-F). Course fee may be required. Information on fees related to this
course can be found here.
3. Curriculum Justification:
The course is aligned with the CBA learning goals of critical thinking, business functions,
quantitative and technical skills, interpersonal, leadership skill and team skills.
4. Course Objectives:
Skill- and content-specific goals of this course include:
Critical Thinking:
Students must be able to understand various financial theories and their implications and to
integrate those, on tests, in their evaluation projects, and with their journal article summary
report, with their conceptual understanding of the realities of financial markets.
Business Functions:
Students will understand the interaction between corporations and the financial markets and
how this impacts the determination of the cost of capital for the corporation. They will also be
exposed to various aspects of the business side of being a professional portfolio manager.
Quantitative and Technical Skills:
Students will possess quantitative and technical skills related to analyzing the risk and expected
return characteristics for both individual stocks and portfolios of stocks and will demonstrate
these skills both on the class exams and on the evaluation project.
Interpersonal, Leadership Skill and Team Skills:
Students must develop and exhibit team/group decision-making skills over the course of
completing their evaluation team projects.
5. Outline of Subject Matter:
Topics to be covered in this class typically include:
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Topics
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Investment Background, Policy, and Objectives
1.1. Introduction: Market Efficiency and the Evolution of Finance
1.2. The Investment Setting
1.3. The Asset Allocation Decision
1.4. Selecting Investments in a Global Market
1.5. Organization and Functioning of Securities Markets
1.6. Security-Market Indices
Developments in Investment Theory
2.1. Efficient Capital Markets
2.2. An Introduction to Portfolio Management
2.3. An Introduction to Asset-Pricing Models
2.4. Multifactor Models of Risk and Return
2.5. The Inefficient Stock Market: What Pays Off and Why
2.6. Videotape: Trillion Dollar Bet
Valuation Principles and Practices
Introduction to Security Valuation
Analysis and Management of Common Stocks
4.1. Industry Analysis
4.2. Company Analysis and Stock Valuation
4.3. Technical Analysis
4.4 Equity Portfolio Management Strategies
Specification and Evaluation of Asset Management (Time Permitting)
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5.1. Professional Money Management, Alternative Assets, and Industry
Ethics
5.2. Evaluation of Portfolio Performance
6. Methods of Instruction:
Recommended Textbooks:
Required texts for this course include textbooks oriented toward advanced Investments
students, such as:
“Investment Analysis and Portfolio Management, 9th Ed.,” by Frank K. Reilly and Keith C.
Brown, Thomson/Southwestern,
“Portfolio Construction, Management, and Protection, 5th Ed.,” by Robert A. Strong,
Thomson/Southwestern,
and / or
“The Inefficient Stock Market: What Pays Off and Why, 2nd Ed.,” by Robert A. Haugen,
Prentice Hall
Optional Text:
“The Intelligent Investor, Revised Edition,” by Benjamin Graham, updated with new
commentary by Jason Zweig
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7. Instructional Policies:
Instructors may specify their own policies with regard to grading, class-room behavior,
make-up exam, withdrawal, academic integrity, absences, etc., as long as these policies are
consistent with the University policies.
The students are expected to comply with the universally accepted norms of considerate and
courteous behavior, and with all University rules and policies found in the current University
Catalog. It will be assumed that the students will adhere to the tenets of academic integrity as
articulated in Dean’s Letter on Academic Integrity throughout this course.
Students with Disabilities: It is the responsibility of students with disabilities to inform the
instructors within the first two weeks of the semester of the need for reasonable
accommodations of their disabilities. Students are advised to seek assistance from Disabled
Student Services (DSS) on campus. As soon as the need for accommodation is determined by
DSS and the need is communicated to the instructors by DSS, reasonable accommodation
will be made.
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