SYLLABUS
Identification Department Economics and Management
Prerequisites
Program
Subject
Term
Undergraduate
FIN 420: Investment Management (3 credits)
Fall, 2015
Instructor
Ziya Alili
Ziya.alili@gmail.com
Tuesday 18:30:21:00, Room 305N
Classroom/hours 41 Mehseti street (Neftchilar campus), Khazar University
FİN 310 Fundamentals of Financial Management,
Students are expected to have a basic background in economics and statistics
Language English
Compulsory/Elective Compulsory
Text books and course materials
Textbooks
1.
2.
“Investments: Analysis and Management” , 12th edition, December 2012,
Charles P. Jones a.
Short name: Jones
“Equity Asset Valuation” by John D. Stowe, CFA; Thomas R. Robinson,
CFA; Jerald E. Pinto, CFA; Dennis W. McLeavey, CFA, Publication: John
3.
4.
Wiley and Sons, 2007, Canada, CFA Investment Series; a.
Short name: CFA Equity
Workbook of “Equity Asset Valuation”, same authors
“ Fixed Income Analysis ” Frank J. Fabozzi, PhD, CFA, CPA, second edition,
Publication: John Wiley and Sons, 2007, Canada, CFA Investment Series; a.
Short name: CFA Fixed
Workbook of “Fixed Income Analysis”, same author. 5.
Additionally, following supportive readings will be provided:
Don M. Chance. Analysis of Derivatives, 1 st edition, 2003
Evaluation Criteria Methods
Midterm Exam
Course work/ Quiz
Activity/participation
Final Exam
Date/deadlines
Tbc
Tbc
Tbc
Tbc
Weights (%)
30
10+ 10
10
40
Course objectives
Course outline
Total 100
Students will be familiar with different financial tools and investment vehicles, fundamentals of portfolio management as well as risk & return analysis. They will be enhanced with 3 different tools to value equity, fixed income investments and derivatives instruments and apply them in to the portfolio context.
This course provides students with the practical insights of investment valuation and portfolio management both in global and local framework.
The focus is on bond- equity-portfolio management, investing into derivatives and their risk hedging characteristics. Course focuses on valuation, risk & return assessment of different investment categories in separate and in combination
Learning Outcomes – students should be able to:
Gain deeper knowledge of traditional and alternative investment tools
Value the financial assets: stocks, bonds and derivative instruments.

Construct portfolio of these assets and analyze their risk & return characters
Conduct fundamental and technical analysis and interpret the market indices
Week No Topic
Tentative Schedule
Topics
15.09.2015
22.09.2015
29.09.2015
6.10.2015
13.10.2015
20.10.2015
27.10.2015
03.11.2015
10.11.2015
17.11.2015
24.11.2015
01.12.2015
8.12.2015
15.12.2015
22.12.2015
Part 1: Basics of Investments
Part 1: Basics of Investments
Part 1: Basics of Investments
Part 2: Equity
Investments
Part 2: Equity
Investments
Part 2: Equity
Investments
Part 2: Equity
Investments
Exam (1 hour)
& Lecture (1.5 hours)
Part 3: Fixed
Income Inv.
Part 3: Fixed
Income Inv.
Part 3: Fixed
Income Inv.
Part 4:
Derivatives
Part 4:
Derivatives
The valuation process. Introduction to Investment asset classes
Direct and indirect investing
Trading Securities
CAPM and other asset pricing models
Valuation of Equity investments
Quiz: Pre-midterm
Midterm Exam &
Lecture: Market efficiency
Features of Debt Securities &
Overview of Bond Instruments
Understanding Yield Spreads
Introduction to Options
Introduction to Futures and
Forwards
Reference (B1-Book
1, B3-Book 3)
Jones: Ch1 – Ch2
CFA Equity: Ch1
Jones: Ch2 & Ch3
Jones: Ch5
Risk and Return from of Portfolios Jones: Ch6 ; Ch7
Portfolio selection and Allocation Jones: Ch8
Jones: Ch9
Jones Ch10
Exam;
Jones Ch12
CFA Fixed Ch1 &
Ch3
CFA Fixed Ch4
Valuation of selected debt securities CFA Fixed Ch5
Jones Ch19;
Part 4:
Derivatives
Concluding lecture
Exam
Pricing and Valuation of Derivative instruments
Technical analysis;
Market indices
Quiz: Pre-final
Deadline for coursework
Final Exam
Jones Ch20;
Supplemental material
Supplemental material
Jones Ch4
Jones Ch16

Quizzes:
There will be two quizzes each with 5% weight in total points. These quizzes will be scheduled to a lecture session prior to the (1) midterm and (2) final exams. There will be five open questions, each with 20% weight in total 5% quiz grade
Coursework:
There will one 10% weighted course work on valuation of equity investments. Students will be asked to value one publicly traded company with relevant equity valuation models. The will need to estimate whether stock is overvalued, undervalued or fairly valued.
Submission format: one MS Word document in 3-5 pages.
Paper shall cover following points:
General information about the selected company and its industry
Historical financial statements of the company and its analysis
Estimation of company’s future cash flows (Dividends? Free cash flow?)
Calculation cost of equity or WACC, whichever is appropriate
Calculation of Terminal Value
Estimation of fair value and value per share
Conclusion
Deadline: 22 December 2015