BUS 447 Investments Syllabus
Linfield College
Spring 2007
WebCT on Line
February 17 thru May 24

Instructor: Jim McCaffery
541-383-3650
E-mail: rambo2440@yahoo.com

Prerequisites: See catalog.

Text: Robert A. Strong, Practical Investment Management, 4th edition, Thomson South - Western.

Course Description: We will follow a basic conceptual approach to capital formation in the real economy. You will learn how to measure the risks and rewards of potential investments, understand human emotional and behavioral tendencies, locate and use current investment information, and plan and manage a personal investment portfolio. The course covers the operation of Global and U.S. securities markets, approaches to investment in common stocks, fixed income securities, mutual funds, global investment, and alternative investment opportunities. The student will learn to analyze various forms of investments, such as corporate bonds, common stock, preferred stock, and government securities (bonds, notes, and bills). A look at securities market, brokerage firms and stock exchanges will give enlightened understanding of market function and emphasize selection of investments based on degrees of risk and expected rates of return

Chapter lectures pertain to information not necessarily included in the text. Students will be responsible for material (text reading, chapter quizzes, and problems as assigned) presented. Assignments and reading are announced in the “Weekly Topic’s’. Current events that might affect the markets will be announced as they may occur..

Specific Objectives: To become familiar with the investment environment, including the operation of Global and U.S. securities markets, investment alternatives such as equity securities, fixed-income securities, convertible securities, and specialized investments. Principles of portfolio management and concepts of financial planning are developed.

General Course Content:  Each student is required to prepare a portfolio under the guidance of the instructor. This course will deal with a thorough analysis of the theory and application of investments in relation to business cycles, institutional behavior, and financial structure in the economic setting. The course is presented from a conceptual viewpoint but will employ an applied, empirical, and managerial spectrum of basic investment strategies and methods.

Course Approach

What you achieve and take from this course will be largely a function of what you put into it.
In covering the material, the course will include, but may not be limited to:

On line discussion
Current issues as presented
Case studies and readings
Individual projects
Portfolio selection and management

Company Profile: Students will be assigned one or more research projects. Will Include, but not limited to, potential investment opportunity description (products and/or services), competitors, who follows the company, number of shares outstanding, liquidity, earnings (past, present and future) and PE's. Do they pay a dividend?

Investment Evaluation spread sheet: Stock selection, management and presentation will be done on a given spread sheet. You will want to have access to, and be familiar with the functions of excel.

Portfolio Selection and Presentation: Each student will select up to 20 stocks and invest $250,000. The Portfolio is due third week of May. All stock selections must be actively traded as part of the S & P 500.

Tentative portfolio rules:

Portfolio Management project: See portfolio game instruction section on home page.

Final Portfolio Report: Discuss success of your portfolio. Why you did what you did. What would you have done different.

Class Participation: The participation grade is about staying “up to date and on time”. The importance of participation cannot be over emphasized.

General Presentation Guidelines : The two key reasons for creating any written or oral presentation in a business setting is to impart knowledge and to persuade. Since we will have little opportunity for oral interaction well will be totally dependent on the written word. Our goals are accomplished only when the person preparing the presentation is clear, concise, and correct. Quality and content are critical in the business world and will be an important determining factor of grades in this class.


Tentative Evaluation Track: Course grade (test standard 70%, 80%, 90%) will be determined as follows;
            50% Participation (including out of class assignments), and chapter quiz's.
            30% Research Reports including portfolio project
            20% Final exam and portfolio presentation

HOW TO MAKE MONEY CAN BE A LOT OF FUN!