MGT4034 Investments Spring 2022 Instructor Email Office Office Hours Web TA Junesuh Yi firstname.lastname@example.org Business Building # 509 (x-8589) Th 15:00–17:00 (or by appointment) http://eclass.dongguk.edu TBA Course Description The purpose of this course is to acquaint the student with what will be useful to any player in the investment market, whether a portfolio manager, a corporate financial officer, or a private investor. Topics covered are portfolio theory (including risk and return, capital asset pricing model, and market efficiency), valuation of stocks and bonds, and fund market. This course provides the practical applications by technical analysis and investment simulation game as well as academic theories. Pre-requisites By its very nature, the course tends to be mathematical. It will serve you well to review your algebra and statistics. I strongly recommend that you take this course after taking Financial Management Text Required: Essentials of Investments, 12th ed., McGraw-Hill, 2022 By Zvi Bodie, Alex Kane, and Alan J. Marcus (BKM) References: Investments, previous edition. McGraw-Hill, By Zvi Bodie, Alex Kane, and Alan J. Marcus Any Investments Textbooks Financial press (WSJ, FT, Business Week, Maekyung etc.) Grading Exams Homework Short Quizzes Project Attendance and Participation 100pts 10pts 20pts 20pts 10pts Exams There are two exams scheduled for this course. More than sixty percent of your grade will derive equally from these exams. The exam dates are noted on the syllabus. The exams will be in class, consisting of multiple choices, true or false, filling the blank questions, essays, and calculation questions. The exams require closed book and closed notes. The key notation or terminology of equations may be provided in the exam. There will be no make-ups. The only exception for make-ups is in the case of true and documented emergencies. Homework There will be irregular homework assignments. Calculation questions will be mainly assigned as homework. The problems and due dates will be announced during the semester. Derivation of efficient frontier and computation of beta coefficient using excel program may be assigned as homework. Students are responsible for turning in the homework in time. Short Quizzes and Participation There will be announced in-class quizzes. These quizzes mainly consist of short questions that reflect important concepts in reading assignment or lectured in previous classes. These quizzes usually will require no more than 10 minutes to complete. They will be used to check your progress on this course. Class participation will be classified three levels, above average, average, and below average through comprehensive evaluation. Student may obtain the additional point in special case. Project: Investment portfolio simulation game The purpose of project is for students to apply their analytical skills to investment portfolio construction and evaluation. The analytical tools include, among other, fundamental and technical analyses, investment theory, and industry analysis. Stocks should be bought and sold based on the various trading theories or the practical tools with logic. Students have 100M won (or $100 K) as initial endowment supplied by web-site of investment simulation game. (http://www.kiwoom.com) The grading of this project will be determined by not only individual performance but project report. Project report should contain logic of trading. The detailed procedure will be announced during the class. Others 1. Material for class will be posted on the e-class. Students are strongly advised to check the e-class for announcements and updates. 2. Students should keep up with the required readings. 3. Attending class is highly recommended. 4. Students who may need special consideration due to a personal matter should make an appointment to meet with the instructor. DBS Vision and Investments To be a top-tier business school in Asia, we will develop global leaders equipped with creative thinking, specialized knowledge and ethical principles. DBS has the following four specific missions: DBS provides students with high quality business education through the innovative teaching and continuous research. DBS develops a global perspective for students through a variety of cross-cultural academic programs. DBS builds professional knowledge and skills in business through specialized programs. DBS highlights business ethics so that all of its stakeholders could honor the ethical standards. Investment class is focus on innovative teaching and globalization among our missions. Various innovative teaching methods are employed in the class. To apply the skills acquired in class to the real-life financial world, students are required to carry out the project in which they should make investment decision by simulation game. Students are also required to do assignments that will enable them to obtain first-hand experiences of applying financial theories to business practices by using Excel program. In terms of globalization, the class is conducted in English ranging from lecturing to homework, quizzes, presentation, and exams. Code of Conduct Students are expected to hold high level of integrity and ethical values. Dongguk Business School (DBS) encourages the students to engage in activities that are consistent with following code of conduct. - Students should respect professors and fellow students in its academic and nonacademic activities. - Students respect academic policies and specific procedures when they have probable causes and academic misconducts. - Students are committed to fostering high quality of learning environments. - Students do not have to cheat on examination, plagiarize on assignments, or falsifying academic records. Class Schedule Part Week 1 Week 2 Week 3 Week 4 Week 5-6 Topic Introduction Background and Issues Elements of Investments Financial Market and Instruments Trading Mechanism Portfolio Theory Risk and Return Portfolio Analysis Chapter BKM 1 BKM 2,3 BKM 5 BKM 6 CAPM, APT BKM 7 Week 7 Efficient Market Hypothesis BKM 8 Week 8 Mid-term Week 9 Security Analysis Economic and Industry Analysis Technical Analysis Stock Valuation Week 10-11 BKM 12 BKM 9 BKM 13 Week 12 Fixed Income Securities Bond Valuation BKM 10 Week 13 Bond Portfolio Management BKM 11 Week 14 Project Presentation Week 15 Final Note: This is a tentative schedule. The actual pace of the class may vary.