FINANCE 367- Investment Management (Mondays and Wednesdays, 3:30-5:00 PM) Spring 2012 Faculty Instructor: Daniel Johnedis, CFA, CIC Phone: 344-9511 Email: djohnedis@cratuscapital.com Class Room: GSB 5.142A Office Hours: MW 5-6:30 in GSB 5.142A Required Textbook: Investments, Bodie, Kane and Marcus, 9th Edition Suggested Reading: Wall Street Journal, Financial Times Financial Calculator with functions including IRR, PV, PMT, FV and CF is necessary and should be brought to each class. Course Objectives The Investment Management class is a comprehensive review of the Investment Management process and provides a basic understanding of investment analysis and portfolio management. We will follow the textbook, and focus on those key topics which are relevant to the class. The outline of the topics is as follows: Wednesday January 18th: Introduction to Investments, Part One Monday January 23rd: Securities Trading Wednesday January 25th: Mutual Funds Monday January 30th: Interest Rates and Risk Premiums Wednesday February 1st: Portfolio Theory, Risk/Risk Aversion, Part Two Monday February 6th: Capital Allocation Wednesday February 8th: Optimal Risky Portfolios Monday February 13th: Equilibrium in Capital Markets, Part Three Capital Asset Pricing Model Wednesday February 15th: Multifactor models, APT Monday February 20th: Market Efficiency Wednesday February 22rd: Security Returns Monday February 27th: Review and Exam #1 Parts 1-3 Wednesday February 29th: Fixed Income Securities, Part 4 Bond Pricing and Yields Monday March 5th: Term Structure of Interest Rates Wednesday March 7th: Managing Bond Portfolios SPRING BREAK Monday March 19th: Security Analysis, Part 5 Macroeconomic and Industry Analysis Wednesday March 21th: Equity Valuation Models Monday March 26th: Financial Statement Analysis Wednesday March 28th: Review and Exam #2, Parts 4-5 Monday April 2nd: Options and Futures, Part 6 Options Markets Wednesday April 4th: Options Valuation Monday April 9th: Futures Markets Wednesday April 11th: Portfolio Management, Part 7 Monday April 16th: International Diversification Wednesday April 18th: Hedge Funds Monday April 23rd: Analyst reports due Wednesday April 25th: Active Portfolio Management Monday April 30th: Investment Policy Wednesday May2nd: Review and Exam #3, Parts 7-8 Wednesday May 9th: 7-10PM Final Exam covering Parts 1-7 Attendance is mandatory and very important as the specific topics of inclusion for this course will be discussed in each class. There will be required reading and homework assignments which will be collected. Prompt completion of homework assignments is essential as it counts towards the final grade for this course. The students’ grades will be marked down for unexcused absences, tardiness and talking, or texting during class. The breakdown for the grade for this course is as follows: Each of the 3 exams is worth 15% 45% Analyst report 15% Homework assignments 15% Final exam 25% TOTAL 100% There will be a guest speaker from a major investment management company speaking during one of the classes in the Portfolio Management section. There will be plenty of ‘real world’ examples as the Instructor has over 25 years of experience as an institutional investment manager. Prerequisites Finance 367-Investment Management is a Restricted Course for students who are currently enrolled in a major program in the College of Business Administration. Prior completion of Finance 357 or Finance 357 H and its prerequisites are among the requirements. Academic Dishonesty Any student suspected of cheating, including stealing or using stolen exams, will be disciplined to the maximum extent possible. Review UT Honor Code at http://registrar.utexas.edu/catalogs/gi09-10/ch01/index.html. Students with Disabilities Upon request, the University of Texas at Austin provides appropriate academic accomodations for qualified students with disabilities. Services for Students with Disabilities(SSD) is housed in the Office of the Dean of Students, located on the fourth floor of the Student Services Building. You can register and receive additional information by going to http://deanofstudents.utexas.edu/ssd/index.php. You can also contact SSD at 512-471-6259 or 512-471-6441 TTY. Religious Holidays By UT Austin policy, you must notify me of your pending absence at least fourteen days prior to the date of observance of a religious holy day. If you miss a class, an exam or a work assignment in order to observe a religious holy day, you will be given an opportunity to complete the missed work within a reasonable time after the absence.