MGMT 337-01: INVESTMENTS II
Spring Semester 2004
T 6:15 p.m. to 9:20 p.m.
Room – Kearn 317
INSTRUCTOR:
OFFICE, PHONE, FAX:
E-MAIL:
WEB PAGE:
OFFICE HOURS:
Dr. Merouane Lakehal-Ayat
K-409, 385-8429; 385-8094 (Fax)
lakehal@sjfc.edu
http://sjfc.edu/~lakehale/lake.html
T, R
11:00 a.m. to 12:30 a.m.
T
5:00 p.m. to 6:00 p.m.
Or By Appointment
PREREQUISITE:
MGMT 315; Corporate Finance
MGMT 336; Investments I
REQUIRED TEXTS, READINGS AND MATERIALS:
Title
Investments
“Winning the Loser’s Game”
“Stock Market Winners: What
Works and Why”
“Hazardous to Your Wealth”
Author
F.K. Reilly/E.A. Norton
C. D. Ellis
M.C. Scott & J. Bajkowski
Computer and Internet Access
Stock-Trak(c) Simulation Game
Used for Homework/Project
(Details will be provided)
Edition
6th Edition
4th Edition
R. Markham
Publisher
Harcourt Brace
McGraw Hill
AAll
Dates
2003
2000
2000
Elton-Wolf
Publishing
2000
Publisher
Prentice Hall
Dates
2002
Prentice Hall
Prentice Hall
Houghton Miffin
1999
2002
2002

RECOMMENDED BOOKS & READINGS FOR COURSE:
Title
Spreadsheet Modeling in
Investments
The Inefficient Stock Market
The Psychology of Investing
The Mutual Fund Business
Author
C. W. Holden
R. A. Haugen
J. R. Nofsinger
R. C. Pozen
Edition
ATTENDANCE POLICY:
Attendance is mandatory. Excessive absences may result in a grade of “FA”.
LEARNING OBJECTIVES OF THE BITTNER SCHOOL OF BUSINESS:
COURSE DESCRIPTION:
This is a three (3) credit intermediate course in investments and is intended to further the
understanding obtained in the introduction to investments course. It is intended to provide
students with a framework where by they will be able to analyze and evaluate the theories,
principals, tools and techniques behind the management of securities portfolios within a fast
changing global financial and economic environment. A Mutual Fund project will be used to
implement and apply the concepts and issues under evaluation. The case study approach will be
used extensively in the course to further enhance knowledge.
COURSE OBJECTIVES:
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Understand the fundamentals of successful investing.
Review the different approaches to portfolio management.
Summarize the motives and various approaches involved in using the asset allocation
scheme to construct an investment portfolio consistent with the investor’s objectives.
Relate investor objectives to the asset allocation and risk-return profiles reflected in various
types of portfolios.
Describe the techniques used to measure the performance individual investment vehicles
and compare performance to investment goals.
Understand and use the techniques and measurements to compare a portfolio’s return with
risk-adjusted, market-adjusted rates of return.
Discuss portfolio control and revision.
Practice portfolio management through case studies, Stock-Trak(c) simulation game and
Mutual Fund design and marketing.
COVERAGE OF LEARNING OBJECTIVES WITHIN THIS COURSE:
Upon completion of this undergraduate Business Division degree program, students will:
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Build upon a broad-based foundation of knowledge in the Liberal Arts to prepare for lifelong
leaning in an ever-changing work environment.
Utilize the discipline-specific knowledge necessary for successful careers in business.
Demonstrate the communication skills necessary to convey concepts, strategies, ideas and
opinions.
Use current computer technologies.
Work productively with colleagues and team members from diverse backgrounds.
Make effective business decisions which integrate various functional areas.
Incorporate the ethical, legal and global contexts of business.
SPECIFIC COVERAGE OF LEARING OBJECTIVES WITHIN THIS COURSE:

Objective #1: Students are required to integrate throughout the course their prior exposure to
corporate finance, economics, accounting, statistics, mathematics and psychology.
 Objective #2: Students are required to understand the concepts, issues and techniques
associated with investment decision making.
 Objective #3: Students are required to complete a Mutual Fund project with a formal
submission to the instructor.
 Objective #4: Microsoft Excel and Internet access will be used in conjunction with the
calculator throughout the course.
 Objective #5: Students will have the opportunity to analyze and solve problems through the
case study approach.
 Objective #6 The ethical, legal and global issues are addressed throughout the textbook
(insider trading, market regulations and global performances, etc). These issues will be
reviewed when judged appropriate.
GRADING: Tests (2)……………………………………………..…..…..30%
Final Exam ……………………..…………………………20%
Mutual Fund / Stock-Trak Project ……………………….20%
Valuation Project ………………………………………..15%
Book Reports………………………………………………...5%
Assigned Homework & Participation…………………… 10%
100%
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ASSIGNMENTS:
Completing assigned homework and readings is critical to your success in this course and must
be completed. With the exception of the Valuation Project and Stock-Trak report, all outstanding
homework and assignments are due the Tuesday of the week before Finals (12/2/2003). No
credit will be given after this date!
Valuation project is due on Tuesday 3/23/2004. Stock Trak project is due on Tuesday 4/20/2004.
No credit will be given for projects turned in after this date.
Text Book Assignments: Are outlined in the Syllabus and are to be completed and
turned in the week following the appropriate lecture. Late homework or not showing all work will
result in a lowered grade as to be determined by the instructor.
Book Reports: Must be typed, 3 to 4 pages in length and are due by the end of the
week following the full discussion of the book.
CASE STUDY: (Outlines will be provided)
Comparison Valuation: [Written report minimum 8 pages in length]
Students will be required to complete a comparative financial analysis of two companies within
the same sector. Students will be required to calculate key ratios using the company’s most
recent annual report to determine the financial health of the company and indicate which is the
better investment and why. Students will also be required to use the concepts presented in
Chapter 15 of the text and from an article handed out. Each student will be required to submit a
written report due on the date outlined in the Syllabus.
STOCK-TRAK / MUTUAL FUND PROJECT Jan. 19TH – Apr. 13TH
Website: www.stocktrak.com
Stock-Trak is a mock brokerage service through which students gain exposure to portfolio
management. Each student who registers with Stock-Trak will be able to open a brokerage
account with up to $500,000.00 in imaginary cash and 12 weeks to buy, sell, buy on margin, sell
short and write options and trade any of the following investment vehicles: Stocks, bonds, stock
options, index options and futures, commodity futures, foreign currency options and futures and
Mutual Funds.
Students will be required to design and market a Mutual Fund using the philosophy from “Stock
Market Winners: What Works and Why”. Students must identify worthy investment candidates
within their assigned sector and develop a Mutual Fund using the Stock-Trak simulation game.
At the end of the semester, each person will submit a written report identifying the outcomes of
using the particular philosophy chosen.
TESTS:
There will be two (2) tests and a non-cumulative final exam. No make-up exams will be allowed.
In case of an emergency, students are encouraged to schedule an early sitting for that exam.
College Policy Concerning Students with Disabilities
In compliance with St. John Fisher College policy and applicable laws, appropriate academic
accommodations are available to you if you are a student with a disability. All requests for
accommodations must be supported by appropriate documentation/diagnosis and determined
reasonable by St. John Fisher College. Students with documented disabilities (physical, learning,
psychological) who may need academic accommodations are advised to make an appointment
with the Coordinator of Services for Students with Disabilities in the Academic Support Center,
K202. Late notification will delay requested accommodations.
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College Policy toward Academic Dishonesty
Academic dishonesty is addressed in the St. John Fisher College Student Handbook. It includes,
but is not limited to cheating in a test situation and plagiarism. The initial sanctions, which are
within the discretion of the professor, are: Warning, repeating the examination/paper/project, “F”
for the examination/paper/project, removal from the course and “F” from the course. In addition,
the Academic Honesty Board and the Dean of Students may impose academic probation,
suspension or dismissal from the college.
College Policy Toward Research of Human Subjects
Any course with a research component, and/or faculty involved in research, should review the
following statement. This wording should be included in syllabi as appropriate.
Learning about the research process includes learning about the protection
of the rights of human subjects (participants). Students in courses which
include the collection of data from human subjects must comply with
Institutional Review Board policies and procedures which protect the rights
of human subjects. This protection includes informed consent, as well as
measures to promote the confidentiality of the data which is collected.
Students involved with course related data collection should speak with
course faculty to learn about Institutional Review Board policies relevant to
the course project. Copies of the St. John Fisher Institutional Review
Board Policies and Procedures are available in the Office of Academic
Affairs, in the Kearney Building room 202, or on the IRB web page at
http://home.sjfc.edu/institutionalreviewboard.
Institutional Review Board members:
Dr. Monica Cherry
385-8101
Kearney 419
Dr. Valerie Cole
385-8440
Pioch 03F
Dr. Susan Constable
385-5211
Wilson 210
Dr. Tim Franz, Chair
385-8170
Pioch 103I
Ms. Barbara Henrichon
385-5217
Pioch 112
Dr. Eileen Lynd-Balta
385-7368
Skalny 235A
Dr. Laura Phelan
385-8115
Pioch 103H
Mr. Michael J. Sullivan
(outside consultant)
Dr. Marilyle Sweet Page
(outside consultant)
Dr. Zinaida Taran
Dr. Deborah Vanderbilt
256-1290
385-8219
385-8193
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Kearney 306C
Basil 109
COURSE OUTLINE (May be subject to adjustments):
Date
1/20
1/27
2/3
2/10
2/17
2/24
3/2
3/16
3/23
3/30
4/6
4/13
4/20
4/24 – 5/1
Lecture/Class Activities
Review Course Outline,
Content Overview of Mutual
Fund Project and Review of
Valuation Project.
Discuss Chapters 1-6 of the
“Stock Market” Book
Discuss Chapter 8 (text)
Discuss and debate chapters 712 of the “Stock Market” book.
Discuss Chapter 10 (text)
Discuss and debate chapters
13-16 of the “Stock Market”
book.
Discuss Chapter 15 (text)
Review for Test #1
Test #1
Discuss Chapter 13
Discuss and debate chapters 16 of the “Winning” book
Discuss Chapter 16
Discuss and debate chapters 712 of the “Winning” book
Discuss Chapter 11
Discuss and debate chapters
13-16 of the “Winning” book
Review for Test #2
Test #2
Discuss Chapter 12 (text)
Discuss chapters 1-4 of the
“Hazardous” book
Discuss Chapters 17 & 18 (text)
Discuss chapters 5-8 of the
“Hazardous” book
Discuss Chapter 19 (text)
Discuss chapters 9-11 of the
“Hazardous” book
Review for Final Exam
FINAL EXAM
Assignment(s)
Start reading “Stock Markets: What Works and Why”.
Read Chapter 8 (text); Pbs. 1-3 and 5 (pgs 269 – 270)
Start Reading “Winning the Loser’s Game”.
Read Chapter 10 (text); Question 27; Pbs. 1-2 (pg. 335)
Registration and outlined plan for Stock-Trak should be
completed by the end of this week.
Read Chapter 15 (text); Pbs. 15-16 (pg. 577)
Book Report on “Winning the Loser’s Game” due by end of
the week
Prepare for Test #1
Read Chapter 13 (text); Pbs. 1-2, 5 (pg. 460)
Start Valuation Project.
Read Chapter 16 (text) Pbs. 5-6 (pg. 610)
Read Chapter 11; Question 14 (pg. 372);
Pbs. 1-2, 6 (pgs 373, 374)
Prepare for Test #2
Read Chapter 12; Pbs. 8, 15-16 (pgs 408 - 409)
Start reading “Hazardous to Your Wealth”
Valuation Project due at end of the week.
Read Chapter 17; Pbs. 1-2, 7 (pgs 646, 647)
Read Chapter 18; Pbs. 1-2, 5 (pg. 695)
Read Chapter 19; Question 14 (pg. 730);
Pbs. 1-3 (pgs 731 – 732)
“Hazardous to Your Wealth” Book Report due at the end of
the week.
Stock-Trak report due at end of the week.
Exact Day and Classroom TBA
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Goal Statement for Stock-Trak
Goal: What are you attempting to do with this money? How will you do it? What type of
risk are you willing to accept? (Make sure to include risk tolerance test from homework
assignment with this report).
Methodology to be used: How will you make your selections (i.e. what criteria will be
used? Will you use financial ratios, recommendations of analysts? Some evidence
must be provided to support your selections). How will you allocate your resources and
why? What will you do with your portfolio over the twelve weeks? (Note: Active
participation is required and will be monitored).
STOCK-TRAK
Outline for Final Written Report
(This report should be a minimum of 8 pages in length)
I.
X
X
II.
X
X
III.
X
X
IV.
X
X
V.
X
X
VI.
X
X
VII.
Objective (Time Frame): This simulation is set up for the 12 weeks of class. Did
you attempt to build you portfolio under this time horizon or did you choose to
use a longer time horizon.
Philosophy: How did you choose your stocks? Did you employ fundamental or
technical analysis? What financial ratios did you use?
Why? (evidence must be provided to support your decisions)
Methodology: What were the deciding factors that made you choose your
stocks? What were your rules for engagement and exit (i.e. Why did you choose
to buy or sell?)
Portfolio Structure: What did your portfolio consist of (i.e. identify specific
sectors, industries, etc)? What happened to your portfolio over the course of
twelve weeks? Be sure to give specific examples.
Outcomes: What did you achieve and how? (i.e. What are you most proud of,
least proud of and why? Were there other factors that contributed to success or
failure of your selection? Why did you sell when you did or buy when you
bought?)
Evaluation or Analysis of Outcomes: This section is to include a summary of
your strengths, weaknesses, what you learned. It also should contain detailed
spreadsheet(s) showing capital gains, return percentages and other measures
learned in the course.
Concluding Remarks: What did you like? What didn’t you like? Why? What
would you do differently if you could? Would you do anything the same?
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