Syllabus_investments_2018fall.docx

Investments BUS2007-01 SKKU Business School Fall 2018 Noon–1:15 pm on Mondays and 1:30-2:45 pm on Wednesdays Room 33402 Course Description and Objectives This is an introductory-level investment finance course. The purpose of this course is to introduce students to the basic conceptual and quantitative tools that professional and retail investors use in analyzing securities and improving their investment performance. The topics we cover include (but are not limited to) the risk-return relationship, security valuation, industry analysis, technical/chart analysis, portfolio diversification, risk management, and derivatives. This course is tailored to undergraduate students who have a basic knowledge of statistics, accounting and financial management. For example, I expect students to be familiar with the discounted cash flow method before taking this course. Prerequisites are Introduction to Financial Accounting (BIZ2022) and Financial Management (BUS2006) or their equivalents. Instructor Information Prof. Jungwon Suh Office: BUS33511 Hours: Immediately following class or by appointment Phone: 02-760-0482 Email: [email protected] Course Materials The required textbook for this course: Jordan, Miller & Dolvin, Fundamentals of Investments: Valuation and Management, 8th Edition. McGraw-Hill International ed., 2018 Finally, students are encouraged, but not required, to purchase a financial calculator, either the HP-10B or TI BAII Plus. For exams, bring a calculator that can compute X^(1/Y) and log(Z). Grading Policy The course grade will be determined as follows: Class attendance/participation 10% Online quizzes/HWassignments* 20% Midterm exam 30% Final exam 30% Total 100% * HW assignments can include “simulation trading” using Kiwoom Securities Inc.’s platform.

As a rule, I do not give a passing grade if a student’s total score is less than half the class median. (i.e., if the class median is 70, then a student’s total score must exceed 35 to avoid an F.) I do not respond to students’ emails or messages that contain request to raise their grade. I do not respond to students’ email or message that contains a request to raise their grade. Please email me to inquire about your final exam score and ranking after the letter grade has been assigned at the end of the semester.

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Selected Textbook Chapters the Course will Cover Note: The selected chapters are those from the main textbook, Fundamentals of Investments by Jordan, Miller and Dolvin (8th ed.).

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Part 1: Introduction - Ch. 1: A Brief History of Risk and Return - Ch. 2: Investment Process - Ch. 3: Overview of Security Types - Ch. 4: Mutual Funds and Other Investment Companies

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Part 2: Stock Markets - Ch. 5: The Stock Market - Ch. 6: Common stock Valuation - Ch. 7: Stock Price Behavior and Market Efficiency - Ch. 8: Behavioral Finance and the Psychology of Investing

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Part 3: Interest Rates and Bond Valuation - Ch. 9: Interest Rates - Ch. 10: Bond Prices and Yields

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Part 4: Portfolio Management - Ch. 11: Diversification and Risky Asset Allocation - Ch. 12: Return, Risk and the Security Market Line - Ch. 13: Performance Evaluation and Risk Management

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Part 5: Futures and Options - Ch. 14: Futures Contract - Ch. 15: Stock Options

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Part 6: Topics in Investments - Ch. 19: Global Economic Activity and Industry Analysis

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Course Schedule and Important Dates This schedule may be subject to change. # 1

Week Sep 3 & 5

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Sep 10 & 12

3 4 5

Sep 17 & 19 Sep 24 & 26 Oct 1 & 3

6 7 8

Oct 8 & 10 Oct 15 & 17 Oct 22 & 24

9 10

Oct 29 & 31 Nov 5 & 7

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Nov 12 & 14

12 13 14 15 16

Nov 19 & 21 Nov 26 & 28 Dec 3 & 5 Dec 10 & 12 Dec 17

Textbook Chapters & Important Dates Ch3. Overview of Security Types Ch2. Investment Process Ch1. A Brief History of Risk and Return Ch19. Global Economic Activity and Industry Analysis Ch5. The Stock Market No class due to Chusok Ch6. Common Stock Valuation Oct 3: no class due to National Foundation Day Ch11. Diversification and Risk Asset Allocation Ch12. Return, Risk and the Security Market Line Oct 24 (Wed): Midterm exam (Room TBA) No class on 22nd Ch7. Stock Price Behavior and Market Efficiency Ch8. Behavioral Finance Special Topic: Technical Analysis Ch9. Interest Rates Ch10. Bond Prices and Yields Ch4. Mutual Funds Ch13. Performance Evaluation and Risk Management Ch14. Futures Contract Ch15. Stock Options Dec 17 (Mon): Final Exam (Room TBA)

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