Survey of Investments

FINA 4310
Spring 2002



Instructor: Stewart Mayhew
Section One: MWF 2:30-3:20   (212 Sanford)
Section Two: MWF 3:35-4:25   (112 Sanford)
Office:437 Brooks
e-mail: mayhew@terry.uga.edu
Textbook: "Essentals of Investments" 4th edition
                      by Bodie, Kane and Markus
Office Hours: 


Prerequisites: Finance 3000 

Course Objectives

The goal of this course is to provide an overview of the basic institutions and quantitative techniques associated with investing in stock, bond and derivative markets.


Grading
Three Exams 300
Final Exam 200
Homework 100
Investment Challenge 100
Portfolio Project 100


Course Outline
 
Reading Assignment Exam Date
Unit I
Elements
BKM Part One
Chapters 1-5
February 6
Unit II
Portfolio Theory
BKM Part Two
Chapters 6-9
March 13
Unit III
Bonds
BKM Part Three
Chapters 10-11
April 12
Unit IV
Derivatives
BKM Part Five
Chapters 16-18
Covered on Cumulative Final


Detailed Calendar (Tentative)
 
Date Topic Reading Assignment Homework/Exams
January 7 (Mon) Introduction
and Review
(Calculating Returns)
Review BKM 6.1 Homework #1
January 9 (Wed) Background and Key Issues BKM 1 Homework #2
January 10 (Thur) DROP/ADD
PERIOD ENDS
January 11 (Fri) Money Markets and
Fixed Income Markets
BKM 2.1-2.2
January 14 (Mon) Stock Indexes BKM 2.3-2.4 Homework #1 due
January 16 (Wed) Derviatives: Futures BKM 2.5 Homework #3
January 18 (Fri) Derivatives: Options BKM 2.5 Homework #2 due
Homework#4
January 21 (Mon) No Class
MLK Holiday
January 23 (Wed) Trading BKM 3.1-3.2 Homework #3 due
January 25 (Fri) Market Structures BKM 3.3-3.5 Homework#5
January 28 (Mon) Buying on Margin
Short Selling
BKM 3.6-3.7 Homework #4 due
January 30 (Wed) Mutual Funds BKM 4.1-4.3 Homework #5 due
Homework#6
February 1 (Fri) Mutual Fund Fees
Fund Performance
BKM 4.4-4.6
February 4 (Mon) Investment Process BKM 5 Homework #6 due
February 6 (Wed) Exam
February 8 (Fri) Returns BKM 6.1
February 11 (Mon) Measuring Risk BKM 6.2-6.3 Homework#7
February 13 (Wed) Asset Allocation
(One Risky Asset)
BKM 6.5
Spreadsheet
Homework#8
February 15 (Fri) Diversification BKM 7.1
Spreadsheet
February 18 (Mon) Asset Allocation
(Two Risky Assets)
BKM 7.2-7.3
Spreadsheet
Homework #7 due
February 20 (Wed) Efficient Frontier BKM 7.4
Spreadsheet
Homework #8 due
February 22 (Fri) Single Factor Model BKM 7.5
February 25 (Mon) CAPM BKM 8.1-8.2 Homework#9
February 27 (Wed) CAPM BKM 8.3-8.4
March 1 (Fri) Factor Models BKM 8.5
March 4 (Mon) Market Efficiency BKM 9.1-9.2 Homework #9 due
Homework#10
March 5 (Tue) MIDPOINT WITHDRAWAL DEADLINE
March 6 (Wed) Market Efficiency
(Issues)
BKM 9.3
March 8 (Fri) Market Efficiency
(Anomalies)
BKM 9.3
March 11 (Mon) Market Efficiency
( Fund Performance )
BKM 9.3
March 13 (Wed) Exam
March 15 (Fri)
March 18-22
SPRING BREAK
 
March 25 (Mon) Treasury Bonds BKM 10.1
March 27 (Wed) Yield to Maturity BKM 10.3-10.4
March 29 (Fri) Homework#11
April 1 (Mon) Investment Challenge
Homework#12
April 3 (Wed) Interest Rate Risk BKM 11.1
April 5 (Fri) Bond Management BKM 11.2
April 8 (Mon) Immunization BKM 11.3 Spreadsheet
April 10 (Wed) No Class (Honors Day) HW12 Answers
(Spreadsheet)
April 12 (Fri) Exam
April 15 (Mon) Options BKM 16 Portfolio Project
Homework#13
April 17 (Wed)
April 19 (Fri) Option Strategies Homework#14
Homework #13 Due
April 22 (Mon)
April 24 (Wed) Portfolio Project Spreadsheet Homework #14 Due
April 26 (Fri)
April 29 (Mon) Last day of class
April 30 (Tue) Portfolio Project due
May 6 (Mon) 8:00-11:00 Final Exam
(3:35 Section)
May 7 (Tue) 12:00-3:00 Final Exam
(2:30 Section)