Syllabus_____________________________________________________________________Spring 2010

1) tell me about a time you've experienced conflict at work, how did you solve it? and 2) tell me about a time you've been under pressure, what did you do?

Finance 312 Introduction to Investments Spring 2010 http://webcom.grtxle.com/investments Antoinette Tessmer, Ph.D. 303 Eppley Center 884-1679 tessmer1@msu.edu finance312ta@gmail.com Sections:
4 5 Tu/Th Tu/Th 10:20 11:40am 12:40 2pm 11:40am - 12:40pm 1 2pm 1 2pm 129 Hubbard n021 BCC 135 Akers 303 Eppley 303 Eppley

Office hours:

M/W TAs Office Hours: F Tu

Course Objectives
To overview the theories and applications associated with the functioning of the financial market. That includes the conceptual foundation of portfolio theory, risk management, and asset valuation. The stock, bond, and derivative markets are examined. An investment challenge will give opportunities to directly apply theory to practice.

Textbook and Course Materials

All course materials are available at http://webcom.grtxle.com/investments ($100 registration fee) - Introduction to Investments (Ebook) by A.C. Tessmer. REQUIRED - Essentials of Investments-8th edition, by Bodie, Kane, and Marcus Recommended. Electronic version for $69 also available on reserve at the Business Library - Stocktrak account (registration card provided by instructor) - Wall Street Journal subscription (mail-in card provided by instructor) - Loncapa resources: - Syllabus - assignments - Practice exams - Other interesting links
______________________________________________________________________________________ Introduction to Investments FI312 page 1 of 6

Syllabus_____________________________________________________________________Spring 2010

______________________________________________________________________________________ Introduction to Investments FI312 page 2 of 6

Syllabus_____________________________________________________________________Spring 2010

Course Format
The course will follow a traditional lecture format. Students participation will be appreciated. Students will be in a better position to participate if they read the course material before coming to class. Students are strongly encouraged to read a business publication such as the Wall Street Journal on a regular basis. Selected articles from the Wall Street Journal will be discussed during class. All students will be responsible for all material presented in lecture and all administrative announcements given during class time. There will be material presented in class not covered in the text or lecture notes.

Course Requirements
Ebook material We will closely follow the notes. The students are required to learn the material. Numerous practice problems on Loncapa are an excellent preparation for the exams. Three individual assignments - to be turned in class on the due dates: Security Analysis Report ( March 23) Bond Analysis Report (April 15) Stocktrak Report (February 23 & April 29) Three exams - will test the students understanding of the material. Scheduled dates: February 16 (Chapters 1 to 7) March 25 (Chapters 8 to 10) May 3/5 (Chapters 11 to 15)

Grading
Grades are based on a curve of the total points accumulated throughout the semester. Assignment 1 (Security Analysis Report) Assignment 2 (Bond Analysis Report) Assignment 3 (Stocktrak Reports + trades) Exam 1 Exam 2 Exam 3 Total 100 points 100 points 100 points 100 points 100 points 100 points 600 points

______________________________________________________________________________________ Introduction to Investments FI312 page 3 of 6

Syllabus_____________________________________________________________________Spring 2010

Notes on grading
Late assignments will be accepted, until the last day of class (4/29/10), with a penalty of 50% on the assigned score. The instructor and a teaching assistant will grade the assignments. The exams are not cumulative. However, some material from earlier in the course will be necessary to understand material later in the semester. The exams will be multiple choices and will focus on the specific chapters to be covered for each exam. No notes will be allowed during the exam.

Make-up exams and Grade Changes

If you have an issue regarding the exam grading, you must write down your complaint and give the exam back to the instructor. In case of a known conflict with one of the exams, a make-up date and time should be arranged with the instructor, at least one week prior to the scheduled exam. A missed exam without prior notification will be recorded as a zero. If an emergency arises, be prepared to provide the instructor with a written documentation explaining your situation.

Administrative Policies
No person is allowed to attend class unless officially enrolled on a credit or non-credit basis with the appropriate fees paid (MSU Academic Programming Guide). It is assumed that students and instructors will behave in an ethical manner during class times and exams, according to the College Honor Code. No cheating of any kind will be tolerated. Unethical acts will be prosecuted according to the MSU Rights, Responsibilities & Regulations (see http://www.msu.edu/current/rights.html).

Dear Mr. Nakken, Thank you for taking the time yesterday to interview me. I thoroughly enjoyed our discussion and learning more about PMCF and what makes it such a great company to work for. I feel that this job is a great match with my skills and interests and would offer me the chance to make an immediate impact with my work. I look forward to hearing from you regarding the position. Sincerely, John Klein

______________________________________________________________________________________ Introduction to Investments FI312 page 4 of 6

Syllabus_____________________________________________________________________Spring 2010

Topics and course schedule

PART I Elements of Investments and Portfolio Theory Tu 1/12 Introduction Th 1/14 Chapter 1 Asset Classes and Financial Instruments Tu 1/19 Chapter 2 Securities Markets Th 1/21 Chapter 2 Securities Markets Tu 1/26 Chapter 3 Mutual Funds and Other Investment Companies Stocktrak website and assignment Th 1/28 Chapter 4 Risk and Return: Past and Prologue Tu 2/2 Chapter 5 Efficient Diversification Th 2/4 Chapter 6 Capital Asset Pricing F 2/5 10 trades on Stocktrak by midnight Tu 2/9 Chapter 7 Efficient Markets Th 2/11 Review session Tu 2/16 Exam 1 (Chapters 1 to 7) PART II Securities Analysis Th 2/18 Stocktrak Report 1 Help Session Tu 2/23 Chapter 8 Macroeconomic and Industry Analysis Stocktrak Report 1 due in class Th 2/25 Chapter 9 Equity Valuation Tu 3/2 Chapter 9 Equity Valuation Th 3/4 Chapter 10 Financial Statement Analysis M 3/8 to F 3/12 Spring Break Tu 3/16 Chapter 10 Financial Statement Analysis Th 3/18 Assignment 1 Help Session Tu 3/23 Review session + Assignment 1 due in class Th 3/25 Exam 2 (Chapters 8 to 10) PART III Debt Securities & Derivatives Markets Tu 3/30 Chapter 11 Bond Prices and Yields Th 4/1 Chapter 11 Bond Prices and Yields F 4/2 20 trades on Stocktrak by midnight Tu 4/6 Chapter 12 Managing Bond Portfolios Th 4/8 Chapter 12 Managing Bond Portfolios Tu 4/13 Assignment 2 Help Session Th 4/15 Chapter 13 Options Markets + Assignment 2 due in class Tu 4/20 Chapter 14 Option Valuation Th 4/22 Chapter 15 Futures Markets and Risk Management Tu 4/27 Chapter 15 Futures Markets and Risk Management Th 4/29 Review session + Stocktrak Report 2 due in class Finals Week Exam 3 (Chapters 11 to 15) Section 1: M 5/3 from 10am to 12noon Section 2: W 5/5 from 12:45 to 2:45pm

______________________________________________________________________________________ Introduction to Investments FI312 page 5 of 6

Syllabus_____________________________________________________________________Spring 2010

FI312 Stocktrak Challenge

Welcome to the FI312 Stocktrak Challenge. Your goal is to maximize the riskadjusted return on your invested assets starting with $500,000. Stocktrak is hosting the challenge. Prior to registering with Stocktrak, ask for a free registration card from your instructor. Next, sign up using the link provided on webcom.grtxle.com. Follow the instructions to register online. Stocktrak publishes all important trading rules on its website. Go over those rules before trading. During class on January 16, we will review the rules and answer all questions you might have about the challenge. Individual participation in this online trading simulation will account for 1/6 of your final grade (100 points). The challenge starts on January 11th. You may start trading right away! The primary criteria for grading will be on how you implement the strategy you propose and how much you utilize techniques discussed in class. At the end of the semester, you will be asked to hand in a printout of your complete trading history as well as a comprehensive portfolio report. The report should discuss how you implemented your strategy, which techniques you used, and your overall performance. You will be allowed to experiment with any number of strategies during the semester, starting January 11th and ending April 30th. Choose the strategy you think will earn you the top risk-adjusted return. You are allowed to invest in stocks, bonds, futures, options, and mutual funds.

Schedule and Grading

M 1/11 Tu 1/26 F 2/5 Th 2/18 Tu 2/23 F 4/2 Th 4/29 F 4/30 Stocktrak starts Stocktrak rules discussed in class 10 executed trades (1 point per trade, 10 points maximum) Stocktrak Report Help Session Stocktrak Report 1 due (35 points) 20 executed trades (1 point per trade, 20 points maximum) Stocktrak Report 2 due (35 points) Stocktrak ends

Extra credit will be offered on Report 2 as follows: At least one short position At least one futures/option position 5 points 5 points

______________________________________________________________________________________ Introduction to Investments FI312 page 6 of 6