Applied Science University
Faculty: Economics and Administrative Sciences
Department: Finance & Banking
Course Syllabus
Course Title
Credit
Hours
Course
No.
Prerequisite
Year (semester)
Investment Management
3
404222
Principles of Managerial Finance
(404200)
2011-2012 (1)
Coordinator Name
Dr Asmaa Al-Amarneh
Lecturer
Dr Asmaa Al-Amarneh
Room
No.
222
E-mail
Office Hours
A_alamarneh@asu.edu.jo
10-12
Sunday,Tuesday,Thursday
11-12 Monday, wednesday
OBJECTIVES: This course reflects the realities of today’s changing investment environment, ranging from
new investment vehicles to techniques and strategies.
INTENDED LEARNING OUTCOMES:
Subject Specific Skills: A structured syllabus has been developed in order to increase progressively the
understanding relating to the subjects covered. The syllabus was developed taking into considerations
several key things including mainly the following:
-
Focus on the students as investment managers by giving them information they can act on instead of
concentrating on theories and research without the proper context.
- Offer strong, consistent pedagogy, including a balanced, unified treatment of the main types of
financial investment world.
- Organize topics in a way that make them easy to apply – whether to a portfolio simulation or to real
life – and support these topics with hands-on activities.
Core Academic Skills: This course is aimed at introductory classes with students who have relatively little
familiarity with investment. A typical student may have taken principles of finance class and had some
exposure to stocks and bonds, but not much beyond the basics.
Personal and Key Skills: Fundamental changes in investments universe drive out attention to relevance.
The first major change is that individuals are being asked to make investment decisions for their own
portfolios more often than ever before. The second major change is that the investment universe has
exploded with an ever-increasing number of investment vehicles available to individual investors. As a
result, investors must choose from an array of products, many of which are very complex, and they must
strive to choose wisely as will.
ASSESSMENT:
First Exam
Thursday 17/11/2011
25 %
Second Exam Thursday22/12/2011
25 %
Final Exam
50 %
Main Text: Jordan D., Miller and Dolvin. 2012. Fundamentals of Investments. 6th Edition. International
Edition, McGrow-Hill Company.
Other References
Corrado J., Charles and Jordan D., Bradford. 2002. Fundamentals of Investments. Second Edition.
International Edition, McGrow-Hill Company.
Lawrence J. Gitman and Michael Joehnk. 1999. Fundamentals of Investing. Seventh Edition, Addison
Wesley.
Week #
‫االردن‬،‫عمان‬،‫دار وائل للنشر‬،9002،‫االطار النظري والتطبيقات العملية‬،‫ادارة االستثمارات‬،‫ محمد مطر‬.‫االردن‬،‫عمان‬،‫دار وائل للنشر‬،9002،‫مبادئ االستثمار المالي والحقيقي‬،‫ زياد رمضان‬-
1,2
Chapter #
1
Topic
A brief History of Risk and Return
3,4
2
The Investment Process
5,6
3
Overview of security Types
First Exam
Sub-topics
- Return; Average Return
- Return Variability
- Risk and Return
- Problems: Q1, 2, 6 and 15
- Choosing a Broker
- Brokerage Accounts
- Short Sales
- Investor Objectives, Constraints,
Strategies
Problems: Q9, 12, 13, 15 and 16
- Classifying Securities
- Interest-Bearing Assets
- Equities
- Derivatives
- Option contracts
- Problems: Q5, 7 and 12
and
Monday 17/11/2011
7,8
5
The Stock Market
9,10
6
Common Stock Valuation
11,12
11
Diversification and Asset Allocation
-
The Primary and Secondary Stock Markets
Stock Market Information
Problems: Q10, 11, 12,14, and 17
Security Analysis
The Dividend Discount Model
The 2-stage Dividend Growth Model
Price- Ratio Analysis
Problems: Q5, 8, 9, 12, 15 and 19
Expected Returns and Variances
Portfolios
Diversification
The Markowitz Efficient Frontier
Problems: Q4, 5, 6, 7, 12, 14 and 16
Second Exam Monday 22/12/2011
13,14
12
Return, Risk and the Security Market Line
15,16
18
Corporate Bonds
Revisions and Final Exam
- Announcements, Surprises, and Expected
Returns
- Risk: Systematic and Unsystematic
- Diversification,
Systematic
and
Unsystematic Risk
- Systematic Risk and Beta
- The Security Market Line
- Problems: Q2, 3, 6, 12, 13, 22 and 23
- Corporate Bonds Basics
- Types of Corporate Bonds
- Bond Indentures
- Protective Covenants
- Event Risk
- Bonds without Indentures
- Adjustable-Rate Bonds and AdjustableRate Preferred Stock
- Corporate Bond Credit Rating
- Junk Bonds; Bond Market Trading
- Problems: Q1, 2, 3, 4, 5, 6, 7, 12 and 14