Fin 2008 Investment
Syllabus
Bokyung Park
Department of Finance
National Taiwan University
Fall, 2023
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Today
▪ Syllabus
▪ Lecture
□ Chapter 1. Investment Environment
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Contact Information
▪ Instructor : Prof. Bokyung Park (朴寶卿 )
□ Office: Business Building 2, #1002
□ E-mail: bokyungp@ntu.edu.tw
▪ TA: Peggy (翁霈宜)
□ Master ’s student in Finance
□ E-mail: R11723010@ntu.edu.tw
▪ Office Hours
□ By appointment via E-mail
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Course Information
▪ Class
□ Class Hours: 14:20 PM-17:00 PM, Monday
□ Classroom : #205 in Business building 2 (管 2)
□ Language: English
▪ Target audience
□ Accounting, Economics, Finance students
□ Anyone interested in this course
▪ Recommended preparation
□ Expected to have understanding of basic accounting, statistics, and economics.
• Basic statistics such as mean, variances, covariance, random variables, and
linear regression
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Course Information
▪ Textbook
□ Investments, McGraw Hill, by Bodie, Kane, and Marcus (hereafter, BKM).
• 12th edition or earlier edition is also fine.
• https://eshop.hwatai.com.tw/SalePage/Index/lEoRuPOlWCJB5Pl1rhZrzA==
• Free shipping code : SPFREE23
– 7-11 or FamiPort (available from Sep. 1st to Sep. 30th )
▪ NTU COOL
□ Announcements, lecture notes, other materials, etc.
□ Lecture notes with annotations
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Grading
▪ Composition
□
□
□
□
□
Attendance/Participation
Group Project
Homework
Midterm
Final Exam
10 %
20 %
5%
25 %
40 %
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Attendance
▪ Missing classes in excess of 1/5 (that is, 4 classes) without acceptable
reasons will result in an automatic failure.
▪ Covid leave, sick leave, interviews, etc. → Use NTU system (請假, Ask
for leave)
Time
Status
2:20 pm - 2:40 pm
Attended
2:40 pm - 3:10 pm
Late
3:10 pm - after
Absent
▪ From the next week, you should check in via Zuvio for your attendance.
□ Sometimes, you will take pop-up quizzes by using Zuvio.
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Download Zuvio
3 types of you:
1. Already had Zuvio account
2. Already the student in this
class
(including those who received the
authorization code)
IOS
Android
Website
3. Plan to take this class
(but have not received the authorization
code)
1. Already had Zuvio account
1. Login
2. Course code:
11200034
2. Already the student in this class
(including those who received the authorization code)
1. Email: NTU email
2. Password:
123
password
3. Plan to take this class
(but have not received the authorization code)
Email: NTU email
(Do not use your personal email)
Take attendance
Have not started
Start !!
If you have any problems in activating your Zuvio account, contact TA.
Congrats for
being on time!!
Group Project
▪ To find the complete/optimal portfolio via Python and to write a short
report
□ Details on the group project will be explained later on after we learn about the
complete/optimal portfolio.
□ Python codes for the group project will be given and explained.
▪ Grouping
□ Each group is composed of 3 or 4 members.
□ Participate in a Google survey in two weeks.
• Based on your answers, TA will construct groups.
▪ Peer evaluation
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Tutorial for Python
▪ Date: To be announced (after midterm exam), Monday in class
▪ Our TA introduces
□
□
□
□
where to download Python (Anaconda/Jupyter notebook)
how to install Python
how to download stock price data from Yahoo Finance into Python via yfinance
basic Python programming etc.
▪ After the session, TA will give you simple exercise work to help you to understand
Python → Individual Homework (5%)
□ Submit your final python codes (.ipynb) to NTU COOL.
▪ Recommended tutorial videos created by NTU (in Chinese)
□ http://ocw.aca.ntu.edu.tw/ntu-ocw/ocw/cou/106S103
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Midterm/Final Exams
▪ Exam date
□ Midterm: October 23rd, Monday ( 8th week)
□ Final: December 18th , Monday (16th week)
▪ The midterm and final exams are closed-book examinations in class
▪ A missing midterm or final exam will result in an automatic failure.
▪ Make-up exams will only be given for documented emergencies.
□ Prior notice and evidence are required.
▪ Providing formula cheat sheet
□ Don’t memorize formula
□ Uploading this cheat sheet over NTU COOL before exams
▪ Bring a calculator (A financial or statistical calculator is recommended)
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How to Follow this Course & Prepare for Exams
▪ Preview
□ Please read the relevant chapters of the textbook before each class.
▪ Take classes
▪ Review
□ Lecture notes
□ Whenever each chapter is completed, you are recommended to solve selective
exercise questions.
• Solutions for questions have been uploaded on NTU COOL
Note) Mid-term/final exams are based on these questions and lecture notes.
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Extra Points - Presentation
▪ Topics
□ Present an interesting financial news related to a company, financial institutions, or a stock
market
□ Introduce a company/stock market/financial market in Taiwan or other countries
▪ Presentation time
□ About 5 mins
▪ Presentation slots
□ Individual or Group
□ 12 slots
□ Sign up for it over Google Docs
https://docs.google.com/spreadsheets/d/1BQp8uyKtSNdFIvc-fvyFKnzAzlmTh9aLtBTGWmKPJFU/edit?usp=sharing
▪ Extra points = 1 pts on top of the total score (100 points)
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What is Investment?
Definition
▪ current commitment of money or other resources in the expectation of deriving
greater resources in the future
Future
Reduce current consumption
=> Plan for later consumption
Investment
Today
x0
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What is Investment?
▪ Where should I put my money today to get more in the future?
→ This course will basically teach you how /where to invest!
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Course Outline
▪ Characteristics of common securities and financial markets
→ Part 1
▪ How should investors allocate resources among financial assets?
□ Risk and return tradeoffs
□ Focus on portfolio construction, not stock picking
→ Part 2 and Part 3(Ch. 9)
▪ Market Efficiency: True or False?
→ Part 3 (Ch. 10 and Ch. 11)
▪ Bond and equity valuation
□ Equity : Undervaluation/Overvaluation/fair value
→ Part 4, 5, and 6
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Course Outline on BKM
▪ Part 1. Introduction
▪ Part 2. Portfolio Theory and Practice
□
□
□
□
5. Risk, Return, and Historical Record
6. Capital Allocation to Risky Assets
7. Optimal Risky Portfolios
8. Index Models
Bring a laptop with
Excel installed!
Passive Investing
(Portfolio)
▪ Part 3. Equilibrium in Capital Market
□ 9. Capital Asset Pricing Model
□ 11. The Efficient Market Hypothesis
□ 12. Behavioral Finance and Technical Analysis
▪ Part 5. Security Analysis
▪ Part 4. Fixed-Income Securities
VS.
Active Investing
(Individual stocks)
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Technical Analysis
Fundamental Analysis
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What You learn from this Course
▪
▪
▪
▪
▪
▪
▪
Understanding of financial market structure
Current news on financial market
Financial language
Financial assets
How to create the optimal portfolio
Investing method (alpha vs. beta)
Python programing
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My Personal Goal is
▪ to help you
□ to better understand financial market
□ to read/figure out financial news article in English
□ to be rational/wise investors
□ to find out your interest in finance
• job
• graduate school
□ to prepare for interview for internship/full-time job
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Announcement
▪ Authorization code if you need
□ Put your name and email address on the list
https://docs.google.com/spreadsheets/d/1Ly_9a9PtVlbyZWCIvYYrNYItO_HhD4MH
Authorization code
VhqEzGXyNVk/edit?usp=sharing
□ Authorization codes are given only until Sep 11th (Mon), midnight.
▪ Contact
□ Contact Prof. Park when you have questions about lectures.
□ Contact the TA when you have any questions about the overall class.
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