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Course SyllabusFall 2017Dr. Saud Asaad Al-ThaqebFIN 320 - Principles of InvestmentsLecture Time and Location:FIN 320/ 51 : M WTIME 14:00– 15:15Room # 310FIN 320/ 01 : M WTIME 15:30– 16:45Room # 309Contact 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 always be prepared.Exams: There will be three midterms and a final; however, the instructor retains the right to change the dates. The dates of the exams are as follows:Important DatesEventNotesWe 25/10/2017Midterm (Ch 1, 2, 19, 4, 5 &6)Thu 26/10/2017Last day to drop a courseThu 21/12/2017Last day of classesWed 27/12/2017Final (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%Midterms40%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 (CFA TOPIC)Stock & Bond Market IndexesRisk 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 valuation(CFA TOPIC)Valuation by Comparables Intrinsic Value vs Market Price Dividend Discount Models Price-Earnings Ratios Free Cash Flow Valuation Approaches 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 theory(CFA TOPIC)The Capital Asset Pricing Model Multifactor Models and the CAPM The Arbitrage TheoryThe 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.)The instructor has the right to change parts of the syllabus during the semester.Course ScheduleMon18/9/2017Introduction to the courseWed20/9/2017Chapters 1: A Brief History of Risk and Return Mon25/9/2017Chapter 2: The Investment Process Wed27/9/2017Chapter 2: The Investment ProcessMon2/10/2017Chapter 19: Global Economic Activity and Industry AnalysisWed4/10/2017Chapter 19: Global Economic Activity and Industry AnalysisMon9/10/2017Chapter 4: Mutual Funds and Other Investment CompaniesWed11/10/2017Chapter 4: Mutual Funds and Other Investment CompaniesMon16/10/2017Chapter 4: Mutual Funds and Other Investment CompaniesWed18/10/2017Chapter 5: The Stock Market Mon23/10/2017Chapter 5: The Stock Market Wed25/10/2017Midterm Mon30/10/2017Chapter 6: Common Stock ValuationWed1/11/2017Chapter 6: Common Stock Valuation Mon6/11/2017Chapter 6: Common Stock Valuation Wed8/11/2017Chapter 7: Stock Price Behavior and Market EfficiencyMon13/11/2017Chapter 7: Stock Price Behavior and Market Efficiency Wed15/11/2017Chapter 7: Stock Price Behavior and Market EfficiencyMon20/11/2017Chapter 8: Behavioral Finance and the Psychology of InvestingWed22/11/2017Chapter 8: Behavioral Finance and the Psychology of InvestingMon27/11/2017Chapter 11: Diversification and Risky Asset Allocation Wed29/11/2017Chapter 11: Diversification and Risky Asset Allocation Mon4/12/2017Chapter 12: Return, Risk, and the Security Market Line Wed6/12/2017Chapter 12: Return, Risk, and the Security Market Line Mon11/12/2017Chapter 12: Return, Risk, and the Security Market Line Wed13/12/2017Chapter 13: Performance Evaluation and Risk ManagementMon18/12/2017Chapter 13: Performance Evaluation and Risk ManagementWed20/12/2017Project Presentations Wed27/12/2017Final Exam (2:00 – 4:00 PM in a place TBA) ................
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