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Course SyllabusSpring 2018Dr. Saud Asaad Al-ThaqebFIN 320 - Principles of InvestmentsLecture Time and Location:FIN 320/ 51 : Su, Tu, ThTIME 12:00 – 12:50Room # 310FIN 320/ 01 : Su, Tu, ThTIME 1:00 – 1:50Room # 310Contact Information:Location: Department of Finance & Financial Institutions – 2nd Floor Email: Althaqeb@cba.edu.kw Office Hours: Monday from 12:30 PM to 1:50 PM or by appointmentSocial Media: MyU – SAlthajeb (This is my preferred form of communication)Course Website: Teaching Assistant: TBACourse Description:This course provides a rigorous treatment of the core concepts of investments for finance majors. Covers portfolio optimization, Concepts used to manage security portfolios and diversification, risk/return tradeoffs, examines the pricing of equity, and analyzes the degree of market efficiency.?Course Learning Outcomes:The learning outcomes for this course, listed below, relate to the learning goals of the College of Business Administration Undergraduate Program, which can be found in the appendix at the end of this syllabus. The numbers in parenthesis indicate to which specific learning goal the outcome relates.Upon successful completion of the course, students will be able to:The students will understand the different types of valuation models and the assumptions behind them and their applications. (LG2, LG3, LG5)The students will be able to use spreadsheet applications (i.e. Microsoft excel) to create models to value assets. (LG3)The students will able to produce professional quality investment and financial reports. (LG4)The students will able to deliver professional quality presentations. (LG4)The students will be to work effectively in a team setting and have the appropriate interpersonal and leadership skills. (LG4)Required Material: Textbook: Jordan, B. D., Miller, T. W., & Dolvin, S. D. (2012). Fundamentals of investments: Valuation and management (7th ed.). New York: McGraw-Hill Irwin. Additional Material: Standards of practice handbook (11th ed.). (2014). Charlottesville, VA: CFA Institute.Other material, including course PPT Slides are available on my website.Financial CalculatorExpectations:I expect you to attend each class and participate in discussions. I expect you to do your project and assigned reports on time and attend the tutorials. Assignments: There will be various assignments throughout the semester. In addition, we will have several assignments using Excel, which will be done individually.Project: There will be a project done in groups of 5 students. The project involves an investment simulation using Stock-Trak in which you will have a certain amount of money to invest and manage as a portfolio in the US market. Each group is going to present their results. A separate handout with details on the requirements and guidelines of this project.The project and the assignments are here to help you understand the material and tie the concepts and expose you to real-world problems and situations.Financial Trading Center (FTC): I encourage each student to visit the FTC at the college of business. You can have free access to Thomson Reuters which is a valuable resource of financial data. It covers equity, fixed-income securities, derivatives and currencies. It has financial news related to countries and specific financial instruments. It also provides you with access to publications and research reports on several sectors/industries as well as companies.Quizzes: I will give some quizzes throughout the semester, so you should be prepared.Exams: There will be one midterm and a final; however, the instructor retains the right to change the dates. The dates of the exams are as follows:Important DatesEventNotesSun 18/03/2018Midterm (Ch 1, 2, 19, 4, 5 & 6)Thu 8/3/2018Last day to drop a courseTue 8/5/2017Last day of classesMon 14/5/2018Final (comprehensive)2:00 – 4:00 PM in a place TBAAttendance: Every student in this course must abide by the Kuwait University Policy on Attendance (published in the Student Guide, Chapter 3, Section 13). However, there is a bonus of 3 points for attendance. A copy of the student guide can be accessed online on: course has a significant seminar component & class participation is critical to the learning experience. Your participation & attendance will contribute to your score of in-class performance.Class Preparation – Readings & Videos: I expect that you will do any assigned work before the class and any additional possible readings I might assign later. This will significantly help you understand the material discussed during class. I also encourage you to re-read the material after the class to reinforce what was covered. Also you should put an effort to follow and read the business news in Kuwait and worldwide and try to connect it to what we do in class.Cheating and Plagiarism: Every student in this course must abide by the Kuwait University Policy on Cheating and Plagiarism (published in the Student Guide, Chapter 3, Section 2). A copy of the student guide can be accessed online on: carefully note all sources and assistance when you turn in your work. Under no circumstances should you take credit for work that is not yours. You should neither receive nor give any unauthorized assistance on any deliverable. If you have any questions about what constitutes “unauthorized assistance” please email me before the deliverable is submitted.?Writing Style: Students must refer to APA writing style for their assignments and report writing. Refer to the English Language Center for help. Grading: The scores in this course will be the weighted average of the following items: WeightDescription25%Projects– (Written Report, Presentation, market updates & Peer evaluation)15%Assignments (Equity Reports), Participation & Quizzes20%Midterm40%Final100%TOTALGrade Distribution:GradeRangeGradeRangeA≥ 95C+≥ 77 and < 80A-≥ 90 and < 95C≥ 73 and < 77B+≥ 87 and < 90C-≥ 70 and < 73B≥ 83 and < 87D+≥ 65 and < 70B-≥ 80 and < 83D≥ 60 and < 65F< 60Course Outline:TitleTopicsInvestments: Background & IssuesReal Assets vs. Financial Assets Financial Assets Financial Markets & the Economy The Investment Process Markets Are Competitive The PlayersAsset Classes & Financial Instruments Stock & Bond Market Indexes(CFA TOPIC)Risk and Return(CFA TOPIC)Rates of Return Risk & Risk Premiums Inflation & Real Rates of Return Asset Allocation across Risky & Risky-Free Portfolios Passive Strategies & the Capital MarketEquity valuationValuation by Comparables Intrinsic Value vs Market Price Dividend Discount Models Price-Earnings Ratios Free Cash Flow Valuation Approaches (CFA TOPIC)Efficient DiversificationDiversification and Portfolio Risk Asset Allocation with Two Risky Assets The Optimal Risky Portfolio with a Risk-free Asset Efficient Diversification with Many Risky AssetsCapital asset pricing and arbitrage pricing theoryThe Capital Asset Pricing Model Multifactor Models and the CAPM The Arbitrage Theory (CFA TOPIC)The efficient market hypothesisRandom Walks and the Efficient Market Implications of EMHPortfolio performance evaluationRisk-Adjusted Returns Market TimingCFA Code of Ethics(CFA TOPIC)CFA Institute Code of Ethics and Standards of Professional ConductNOTE: Standards of practice handbook (11th ed.)Tentative Course Schedule: Sun28/1/2018Introduction to the courseTue30/1/2018Chapters 1: A Brief History of Risk and Return Thu1/2/2018Chapters 1: A Brief History of Risk and Return Sun4/2/2018Chapter 2: The Investment Process Tue6/2/2018Chapter 2: The Investment Process Thu8/2/2018Chapter 19: Global Economic Activity and Industry AnalysisSun11/2/2018Chapter 19: Global Economic Activity and Industry AnalysisTue13/2/2018Chapter 19: Global Economic Activity and Industry AnalysisThu15/2/2018Chapter 4: Mutual Funds and Other Investment CompaniesSun18/2/2018Chapter 4: Mutual Funds and Other Investment CompaniesTue20/2/2018Chapter 4: Mutual Funds and Other Investment CompaniesThu22/2/2018Chapter 5: The Stock Market Sun25/2/2018No classTue27/2/2018Chapter 5: The Stock Market Thu1/3/2018Chapter 6: Common Stock Valuation Sun4/3/2018Chapter 6: Common Stock Valuation Tue6/3/2018Chapter 6: Common Stock Valuation Thu8/3/2018Chapter 6: Common Stock Valuation Sun11/3/2018Chapter 17: Projecting Cash Flow and EarningsTue13/3/2018Chapter 17: Projecting Cash Flow and EarningsThu15/3/2018Chapter 17: Projecting Cash Flow and EarningsSun18/3/2018Midterm 1Tue20/3/2018Chapter 7: Stock Price Behavior and Market Efficiency Thu22/3/2018Chapter 7: Stock Price Behavior and Market EfficiencySun25/3/2018Chapter 7: Stock Price Behavior and Market EfficiencyTue27/3/2018Chapter 8: Behavioral Finance and the Psychology of InvestingThu29/3/2018Chapter 8: Behavioral Finance and the Psychology of InvestingSun1/4/2018Chapter 8: Behavioral Finance and the Psychology of InvestingTue3/4/2018Chapter 11: Diversification and Risky Asset Allocation Thu5/4/2018Chapter 11: Diversification and Risky Asset Allocation Sun8/4/2018Chapter 11: Diversification and Risky Asset Allocation Tue10/4/2018Chapter 11: Diversification and Risky Asset Allocation Thu12/4/2018Chapter 11: Diversification and Risky Asset Allocation Sun15/4/2018Chapter 12: Return, Risk, and the Security Market Line Tue17/4/2018Chapter 12: Return, Risk, and the Security Market Line Thu19/4/2018Chapter 12: Return, Risk, and the Security Market Line Sun22/4/2018Chapter 12: Return, Risk, and the Security Market Line Tue24/4/2018Chapter 12: Return, Risk, and the Security Market Line Thu26/4/2018Chapter 12: Return, Risk, and the Security Market Line Sun29/4/2018Chapter 13: Performance Evaluation and Risk ManagementTue1/5/2018Chapter 13: Performance Evaluation and Risk ManagementThu3/5/2018Chapter 13: Performance Evaluation and Risk ManagementSun6/5/2018Chapter 13: Performance Evaluation and Risk ManagementTue8/5/2018Project Presentations Mon14/5/2018Final Exam (2-4 PM in a place TBA) ................
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