BUS 447 Investments Syllabus
Linfield College
Summer 2005
WebCT on Line
Instructor: Jim McCaffery
541-383-3650
E-mail: rambo2440@yahoo.com
Prerequisites: See summer catalog.
Text: Robert A. Strong, Practical Investment Management, 3rd edition, Thomson
South - Western.
Course Description : While this course has the potential to be a hands on tool
for the student, it will follow a basic conceptual approach to capital
formation in the real economy. Formulation of investment policies, fundamental
and technical security analysis, and portfolio strategy. Explains how to
measure the risks and rewards of potential investments, understand human
emotional behavioral tendencies, locate and use current investment information,
and plan and manage a personal investment portfolio. Describes the operation of
U.S. securities markets, approaches to investment in common stocks, fixed
income securities, mutual funds, global investment, and alter native investment
opportunities.
Lectures are weekly and pertain to information not necessarily included in the
text. Students will be responsible for material presented. Outside assignments
and reading will be announced and generally will pertain to current events that
might effect the markets.
Introduction to and analysis of various forms of investments, such as corporate
bonds, common stock, preferred stock, and government securities (bonds, notes,
and bills) will be included. Discussion of securities market, brokerage firms
and stock exchanges will give enlightened understanding of market function to
the student. We will emphasizes selection of investments based on degrees of
risk and expected rates of return.
Specific Objectives: This course will simulate the real life activities of a
comprehensive course for the new investor, as well as for the experienced
investor. We will become familiar with the investment environment, including
the operation of U.S. securities markets and 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 A course in the preparation of an educational approach
to investing in the 21st century. 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
In covering the material of the major modules, 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
Course Activities :Active participation via on line discussion in all class
activities is essential to accomplish the goals of the class. What you achieve
and take from this course will be largely a function of what you put into it.
Company Sketch: Students will be assigned several research presentation of the
investment opportunities of particular (assigned or chosen) fortune 500
company. Including, but not limited to, company 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 spreedsheet: Stock selection, management and presentation
will be done on a given spreedsheet. You will want to have access to, and be
familiar with (not required), the functions of excel.
Portfolio Selection and Presentation: Each student will select up to 20 stocks
and invest $250,000. The selection is due first week of August and is to be
presented at that time. All selections must have four letters or less in the
symbol ( if a stock) and have been profitable for the last four quarters.
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 will include discussions and
presentations of assignment via discussion mode. The importance of
participation cannot be over emphasized. Consider the class a safe environment
on which to test ideas and thoughts.
General Presentation Guidelines : The two key reasons for creating any written
or oral presentation in a business setting are 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.
Evaluation: Course grade (test standard 70%, 80%, 90%) will be determined as
follows;
40% Participation (including out of class assignments) and quiz's.
20% Research Reports including portfolio project
20% Mid-term exam
20% Final exam and portfolio presentation
Homework: As assigned
Course Outline: Since the world of investments is ultra dynamic our assignment
world will be as well. The following time table is just a guide as you will
always need to refer to the assignment schedule for updated current
requirements in course information.
Week of:
6/13/2005
Chapter 1 - The Concept of Investing
Chapter 2 - Understanding Risk and Reward
Chapter 3 - The Marketplace
6/20/2005
Chapter 4 - Bond Fundamentals
Chapter 5 - Common Stock
Chapter 6 - Market Mechanics
6/27/2005
Chapter 7 - Fundamental Stock Analysis
Introduction to Portfolio selection
Introduction to Portfolio management evaluation model
Chapter 8 - Valuation Tools
7/4/2005
Chapter 9 - Technical Analysis
Chapter 10 - Market Efficiency
Chapter 11 - Behavioral Finance
7/11/2005
Chapter 12 - Gathering Investment Information
Mid-term Exam (thru chapter 11)
Chapter 13 - Market Indexes
7/18/2005
Chapter 14 - Convertible Securities
Chapter 15 - Investing Internationally
Chapter 16 - Why Diversify?
Chapter 17 - The Role of Derivative Assets
7/25/2005
Chapter 18 - Managing The Equity Portfolio
Chapter 18 - Managing The Fixed Income Portfolio
8/1/2005
Chapter 20 - Mortgage - Backed Securities
Chapter 21 - Investment Companies
Portfolio due
8/8/2005
Chapter 22 - Performance Measures and Presentations
Chapter 23 - CONTEMPORARY ISSUES
8/15/2005 Final Presentation and Exam