CITY COLLEGE OF SAN FRANCISCO
Finance 138 - PRINCIPLES OF INVESTMENT
3 Units, Section 001, CRN 70307
Fall 2013
Tuesday/Thursday 11:00am – 12:30pm, August 15th – December 10th
No class September 17th and November 28th
Room: Cloud 201
Instructor: Mr. Mario Yrun
Background:
BA, Pomona College, Economics, 1982
MBA, University of Chicago, Finance/Statistics, 1988
Financial Derivatives Structuring/Marketing 1988-2000
Citicorp, Credit Lyonnais, Salomon Smith Barney
Consultant/Product Manager, Knowmadic Inc. 2000 – 2003
Consultant/Marketer, Phelan Capital LLC 2006 - 2007
Instructor, City College of San Francisco 2001 – present
Golden Gate University, 2003 - 2004
Email:
myrun@ccsf.edu
Website:
go to: fog.ccsf.edu/myrun, then click FIN 138 for course page
Office hours: Cloud 220, Wednesdays and Mondays 9am – 10am, or by
appointment
Mailbox:
C106
Textbook:
“Fundamentals of Investing”, 11th Ed., by L.J. Gitman & M.D.
Joehnk, Addison-Wesley
The following policies and deadlines apply equally to all students, including international
students:
Student Attendance Requirement:
Students are expected to attend all sessions.
Students who miss more than 5 sessions will
be subject to withdrawal by the instructor.
Student Preparation for Class:
Read text chapter before class lecture. Be
prepared to discuss week’s economic data
and market response: read handout “The
Expectations Game” or read “Your
Assignment for Every Class Meeting” from
course page on website and prepare from
www.bloomberg.com and
http://biz.yahoo.com/c/e.html
Examinations:
Midterm: Thurs Oct 24th
Final: Thurs Dec 19th, 10:30am – 12:30pm
No make-up exams are given.
Grading System:
Project 40%, Final 25%, Midterm 20%
Class Participation 15%: 90–100 = A, 80–
89 = B, 70–79 = C, 60–69 = D and <60 = F
Important Dates:
August 27, 2013: Last day to withdrawal,
drop or reduce course load in order to obtain
enrollment fee and 100% nonresident and
foreign student tuition fee refund
August 30, 2013: Last day to add credit
classes online
September 5, 2013: Last day to drop credit
classes with no “W” on transcript, Last day
to drop classes to qualify for 50%
nonresident tuition fee refund;
September 12, 2013: Last day to request
credit/no-credit grading option
November 14, 2013: Last day for studentinstructor initiated withdrawal. Instructor
must assign grade or incomplete after this
date.
It is your responsibility to withdraw from the class by November 14th if you should chose
not to continue for any reason. To receive an incomplete grade you must submit a
request in writing to the instructor on or before December 10th with your reason and you
must receive written approval for the incomplete.
Reasonable accommodation of disabled students is required by law under the Americans
with Disabilities Act. Any disabled student who would like disability related
accommodations (special arrangements of any sort) must register with DSPS (Disabled
Students Programs and Services) and receive an official document from DSPS that
outlines reasonable accommodations determined by the DSPS counselor. The document
from DSPS should be shown to the instructor. If you do not have this document or you
have yet to register with DSPS, please call a counselor at (415) 452-5481. DSPS is
located in room 323 of the Rosenberg Library.
FIN 138 CLASS SCHEDULE
Fall 2013
Th 8/15:
T 8/20:
Th 8/22:
T 8/27:
Th 8/29:
T 9/3:
Th 9/5
T 9/10:
Th 9/12:
T 9/17:
Th 9/19:
T 9/24:
Th 9/26:
T 10/1:
Th 10/3:
T 10/8:
Th 10/10:
T 10/15:
Th 10/17:
T 10/22:
Th 10/24:
T 10/29:
Th 10/31:
T 11/5:
Th 11/7:
T 11/12:
Th 11/14:
T 11/19:
Th 11/21:
T 11/26:
Th 11/28:
T 12/3:
Th 12/5:
T 12/10:
Course Introduction and Chapter 1
Chapter 1: Investment Environment & Economic Calendar Online Lab
Economic Analysis and Documentary - Warren Buffet Talks Business
Chapter 1: Investment Environment
Chapter 2: Markets and Transactions
Chapter 2: Markets and Transactions
Economic Analysis and Documentary: The Motley Fool
Chapter 3: Investment Information and Security Transactions
Chapter 4: Risk and Return
no class
Economic Analysis and Video: Frontline – Inside the Meltdown
Chapter 4: Risk and Return
Chapter 5: Modern Portfolio Theory
Chapter 5: Modern Portfolio Theory
Chapter 6: Common Stock
Chapter 6: Common Stock
Economic Analysis and Documentary: Frontline – Breaking the Bank
Chapter 7: Analyzing Common Stocks
Chapter 7: Analyzing Common Stocks
Chapters 1-7 Q&A, Midterm Exam Review
Midterm Exam
Chapter 8: Stock Valuation
Chapter 8: Stock Valuation
Economic Analysis and Documentary: Frontline – Mind over Money
Chapter 9: Technical Analysis, Market Efficiency and Behavioral Finance
The Federal Reserve
Chapter 10: Fixed-Income Securities
Chapter 11: Bond Valuation and PBS video “Credit and Credibility”
Chapter 11: Bond Valuation
Chapter 14: Options
no class
Chapter 14: Options
Chapter 14: *Web Ch 17: Taxes and Tax-Advantaged Securiti Options
Chapter 12: Mutual Funds and Course Review
Th 12/19:
10:30am – 12:30pm: Final Exam / Portfolio Projects Due
No projects accepted after December 19th
* Read Web Chapter 17: go to http://www.pearsonhighered.com/gitman/#fundamentals
 fundamentals of investing 11e companion website  student resources  ch 17 Tax
Advantaged Investments
Finance 138
PORTFOLIO PROJECT
Hard copies due at final examination Thursday December 19th, no e-copies accepted
You have $100,000 to invest (+ or - $10,000). Assume that you have a cash account
with a brokerage firm. Develop an investment portfolio. The following requirements
and restrictions apply:
A.
Your investment goals must be clearly stated at the outset, including time
line/investment objective. State/explain your tolerance level towards risk.
B.
Explain rational for asset allocation percentages, industry choices and
company choices with respect to your investment goals, time horizon, risk
preferences, and fundamental analysis. Include target portfolio beta.
C.
At least 60% should be invested in common stocks. At least 15 different
stocks should be analyzed and included in stock allocation.
D.
No direct investment in any mutual funds, except money market mutual
funds as part of cash/cash equivalent.
E.
No real estate or tangible investments should be included.
For each security/investment you have chosen, provide a 3-year history of the company,
where applicable, including but not limited to the following:
1.
Net Income
2.
Earnings per share
3.
Price/Earnings ratio
4.
Dividend, if any, and dividend yield
5.
Highs and lows for stock price last 52 weeks
6.
Stockholder’s Equity and Total Market Capitalization
Provide and discuss actual security and actual portfolio betas, as well as rough expected
correlations between securities chosen. “A” projects will include appropriate company
financial ratio comparisons to other industry leaders and industry averages as part of
selection rationale. For each security you have selected, give an assessment of the
industry to which it belongs, including past history, present conditions, and future
potential. Such assessment should not be longer than 250 words. Do the same for the
company. MUST BE STUDENTS OWN ANALYSIS – COPY OF ONLINE
VERBAGE PROHIBITED.