MBA 566: Security & Investment Analysis
Spring 2013
Wednesday: 7:00PM – 9:45PM
Providence Campus
GENERAL INFORMATION
Instructor: Tong Yu
E-mail: tongyu@uri.edu
Office Hour: MW 11:00-12:00pm
Office: 223, Ballentine Hall
Office phone: (401) 874-7415
Web page: http://www.cba.uri.edu/tong/mba566.htm
TEXTBOOKS
1) Bodie, Kane, and Marcus, Investments, McGraw-Hill, 9th Edition, ISBN 978-0-07-353070-3.
2) Greenblatt, The Little Book that Still Beats the Market, Wiley, ISBN: 978-0-470-62415-9
(Little Book).
SUPPLEMENT READINGS
Wall Street Journal, Subscription Required.
FINANCIAL CALCULATOR
BA-II Plus model (Texas Instruments) is preferred.
PREREQUISITES
MBA 504 or equivalent
COURSE OBJECTIVES
This course will help you develop the required skills in portfolio management and security
analysis. The course covers three categories of materials: (a) Equity valuation and portfolio
management, (b) Bond valuations, interest rate management and managing bond portfolios and
(c) the application of financial derivatives and financial engineering. Several other topics, such as
IPO process and mutual fund investment, will be also covered. You will be asked to create your
own portfolio of securities, conduct hypothetical trading and evaluate portfolio performance.
GRADING
Quiz and presentation:
Project
Exam 1
Exam 2
15%
15%
35%
35%
PROJECTS
You will form groups up to 5 people to work on the project. Requirement includes an oral
presentation and a written report. Specific requirement will be announced later. 20 Percent of the
grade will be deducted from total points possible for late work (I.e., your grade will be lowered
by a notch by submitting late works).
HOMEWORK
You should turn in your homework on time. Please write your answers clearly. If there are
multiple pages, please staple them! Homework contains three parts: (1) regular textbook
exercises, (2) a portfolio analysis, and (3) major financial event analysis. I will provide solutions
to homework. You will find some of exam and quiz questions are similar to your homework.
Homework schedule has been listed in Syllabus but subject to changes according to course
progress. Please submit homework on time. Late homework without an excuse will not be
accepted. Homework solutions will be provided after the homework is collected.
QUIZZES
You will have 3 quizzes. The quizzes will be given at the beginning of the class and take you
approximately 30 minutes for each quiz.
EXAMS
There will be 2 exams. A legitimate conflict with any of the examinations can only be determined
by the instructor. Failure to obtain this approval PRIOR TO THE EXAM will result in a ZERO
grade. To attend a make-up exam within one week of the original date of the exam: 1) contact
the instructor prior to the original exam date, and 2) have a legitimate conflict is approved by the
instructor.
POLICIES
Class Preparation: Students are expected to prepare for class by reading and thinking about
the assigned materials prior to attending class. Students are expected to be in a position to
both respond to questions on the material and ask questions regarding the assigned subjects.
Attendance: Students are expected to attend all classes. Should a student miss a class, he/she
will be responsible for all the work given in the missed session. Students missing six (6)
hours of classes will have their grade lowered by one letter grade; students missing twelve
(12) hours of classes will receive an F for the course.
Late for Class: Students are expected to come to the classes on time. If you are more than 10
minutes late, please do NOT enter the room. It disrupts the class and is very inconsiderate to
the instructor and other students in the class.
Class Participation: Students are encouraged to actively participate in the class; however the
discussion should be conducted in an orderly way. Students should exercise common
courtesy and pay close attention when their fellow classmates are speaking.
Miscellaneous: 1) Please turn-off all electronic devices, such as pager and cellular phone,
which might interrupt the class. 2) Please do NOT consume food in the classroom.
Academic Honesty: Any student found copying during exams or quizzes, signing someone
else's name to the attendance list, using stored formulas in programmable calculators, using
non-authorized formula sheets or other notes during exams, collaborating on and/or copying
the course project (including from students in prior classes), or the like will receive an F for
the course and possibly be subject to additional University disciplinary action.
Appeals: Students may appeal grading of an exam or other assignment by providing a written
appeal that describes the nature of the disagreement. All appeals must be turned in by the end
of the first class period after the return of the assignment.
GRADING SCALE
100 - 94 A
83 - 80 B67 - 69 D+
93 - 90 A79 - 77 C+
60 - 66 D
89 - 87 B+
76 - 74 C
0 - 59 F
86 - 84 B
73 - 70 C-
COURSE OUTLINE
Date
1/23
Subjects
Securities Trading
Chapters 1 through 3
Chapters 1-4, Little Book (self reading)
1/30
Homework 1
Risk and Asset Allocation (I)
Chapters 5 through 6
2/6
Quiz 1
Risk and Asset Allocation (II)
Chapter 7
2/13
CAPM, APT, and Behavioral Finance
Chapters 9, 10, 12
Chapters 5-10, Little Book (self reading)
2/20
Homework 2
Exam 1
Market Efficiency
Chapter 11
2/27
Bond Preliminaries, Term Structure
Chapters 14 and 15
3/6
Quiz 2
Bond Portfolios and Interest Rate Derivatives
Chapter 16
Chapters 10-13, Little Book (self reading)
3/20
Homework 3
Security analysis
Chapters 17 to 19
3/27
Option Market
Chapters 20 & 21
4/3
Homework 4
Portfolio Management (I)
Chapters 24
4/10
Exam II
4/17
Portfolio Management (II)
Chapters 4, 24, 27
4/24
Quiz 3
Group Presentation