INVESTMENTS FINK 590(FACE to FACE)
6:00 PM – 9:00 PM: Tuesday FH313
Instructor Info:
Name: Dr. Kevin Lee; Assistant Professor of Finance
Office: Founder’s Hall, 323Q
Phone: 254.519.5772
Email: kevin.lee@tamuct.edu
Office Hours: 4:00 PM – 6:00 PM Tuesday and by appointment
Course Materials:
Textbook: Essentials of Investments 9th edition by Bodie, Kane, and Marcus – McGraw Hill
Publishers
You will also need a financial calculator. I prefer that you have the TI BAII Professional (highly
recommended) or the BAII Plus financial calculator. This is because I can show you examples in
class using these calculators. If you prefer to use an hp business calculator or a graphics
calculator that has financial functions, that is fine but do not expect me to tutor you on how to
use your own calculator.
Course Overview and description:
The development of investment policy; the character of investment risk; a comparison of
investment media; description and analysis of security markets and their operations. Prerequisite:
FINK 301 or equivalent.
Course Objective (SLO):
Upon completion of this course, students should understand the following:
a. The major elements of investments.
b. The relevance of portfolio theory
c. The basics of various debt security markets.
d. The mechanics of security analysis
e. The nuts and bolts of derivative markets
f. The key components of active investment management.
Course Competencies and Assessments (based on SLOs above)
Upon completion of this course, students should be able to do the following:
a. Read real-world financial statements and draw conclusions about a firm's financial
health.
b. Construct and interpret important financial metrics.
c. Describe the major steps in the construction of an investment portfolio.
d. Distinguish among the major assets that trade in money and capital markets.
e. Describe the role of investment bankers in primary issues.
f. Analyze mutual funds and other investment companies.
g. Characterize the risk and return features of different types of investments.
h. Construct efficient portfolios.
i. Construct and use the Security Market Line.
j. Cite evidence that supports and contradicts the efficient market hypothesis
k. Demonstrate how the principles of behavioral finance can explain anomalies in stock
market returns.
l. Analyze the features of bonds.
m. Value a firm using several equity valuation methods.
n. Formulate options market strategies for hedging or speculative purposes.
o. Formulate futures market strategies for hedging or speculative purposes.
p. Compute risk-adjusted rates of return to evaluate investment performance.
Course Requirements:
Homework (700 points) – There will be end of chapter homework assignments throughout the
semester. There will also be tasks required of the students regarding current events and stock
tracking. All homework assignments combined will be worth 700 points. This includes
approximately 300 points from end of chapter homework and 400 points from other activities. I
will not accept late homework. Let me repeat. I WILL NOT ACCEPT LATE HOMEWORK!
(Unless there are some extenuating circumstances but that will be a case by case determination)
Exams (300 points) – You will have 2 exams in this class. Each exam is worth 150 points. All
exams will cover material from the chapters that were covered after the previous exam. This
means that the exams are not comprehensive…technically. However, since much of the material
builds on itself, you must understand earlier chapters to be able to show your understanding of
later chapters.
Grading:
900+
800 – 899.99
700 – 799.99
600 – 699.99
0 – 599.99
A
B
C
D
F
NOTE: Requests for Incomplete Grades: Incompletes will only be given in emergency or other
extreme circumstances. Any request for an incomplete grade in this course must be approved by
the professor prior to the last week of classes. Requests should be submitted in written form,
include a detailed explanation and documentation, and must include an address and/or telephone
number where you may be contacted throughout the following semester. There is a university
requirement that a substantial portion of the course work must have been completed by the
student prior to receiving and incomplete. Also, students will be required to enter into a contract
with the professor to finish the course within some set timeframe to be determined by the
professor. Students will no longer be able to get an IC after doing 5% of the class and then get an
extra semester to complete their work.
ACADEMIC SUPPORT, RESOURCES AND POLICIES
UNILERT is an emergency notification service that gives Texas A&M University-Central
Texas the ability to communicate health and safety emergency information quickly via email,
text message, and social media. All students are automatically enrolled in UNILERT through
their myCT email account. Connect at www.TAMUCT.edu/UNILERT to change where you
receive your alerts or to opt out. By staying enrolled in UNILERT, university officials can
quickly pass on safety-related information, regardless of your location.
Drop Policy
It is the student’s responsibility to be aware of University mandated drop deadlines should you
find yourself needing to drop this course. The deadlines are all available via the “TAMUCT
Academic Calendar” link from the Course web site left-hand menu. If you discover that you need
to drop this class, you must contact the Records Office and ask for the necessary
paperwork. Professors cannot drop students; this is always the responsibility of the student. The
record’s office will give a deadline for which the form must be returned, completed, and signed.
Once you return the signed form to the records office and wait 24 hours, you must go into Duck
Trax and confirm that you are no longer enrolled. If you are still enrolled, FOLLOW-UP with the
records office immediately. Should you miss the deadline or fail to follow the procedure, you
will receive an F in the course. Incompletes are not given except for documented medical or
family emergencies, with a significant portion of the course already completed.
Academic Integrity
Texas A&M University - Central Texas expects all students to maintain high standards of honor
in personal and scholarly conduct. Any deviation from this expectation may result in a minimum
of a failing grade for the assignment and potentially a failing grade for the course. All academic
dishonesty concerns will be reported to the university's Office of Student Conduct. Academic
dishonesty includes, but is not limited to, cheating on an examination or other academic work,
plagiarism and improper citation of sources, using another student's work, collusion, and the
abuse of resource materials. When in doubt on collaboration, citation, or any issue, please
contact me before taking a course of action. More information can be found at
http://www.tamuct.edu/departments/studentconduct/academicintegrity.php
Disability Support Services
If you have or believe you have a disability and wish to self-identify, you can do so by providing
documentation to the Disability Support Coordinator. Students are encouraged to seek
information about accommodations to help assure success in their courses. Please call (254) 5015831 or visit Founder's Hall 114, Suite 114. Additional information can be found at
http://www.tamuct.edu/departments/disabilitysupport/index.php
Tutoring
Tutoring is available to all TAMUCT students, both on-campus and online. Subjects tutored
include Accounting, Finance, Statistics, Mathematics, and Writing. Tutors are available at the
Tutoring Center in Warrior Hall, Room 111. Visit www.ct.tamus.edu/AcademicSupport and
click "Tutoring Support" for tutor schedules and contact info. If you have questions, need to
schedule a tutoring session, or if you're interested in becoming a tutor, contact Academic Support
Programs at 254-501-5830 or by emailing tutoring@ct.tamus.edu.
Chat live with a tutor 24/7 for almost any subject on your computer! Tutor.com is an online
tutoring platform that enables TAMUCT students to log-in and receive FREE online tutoring and
writing support. This tool provides tutoring in Mathematics, Writing, Career Writing, Chemistry,
Physics, Biology, Spanish, Calculus, and Statistics. To access Tutor.com, log into your
Blackboard account and click "Online Tutoring."
The University Writing Center
The University Writing Center at Texas A&M University-Central Texas is a free workspace
open to all TAMUCT students. The UWC is located in 416 Warrior Hall. The center is open
11am-6pm Monday-Thursday during the spring semester. Students may work independently in
the UWC by checking out a laptop that runs Microsoft Office suite and connects to WIFI, or by
consulting our resources on writing, including all of the relevant style guides. Students may also
arrange a one-on-one session with a trained and experienced writing tutor. Tutorials can be
arranged by visiting the UWC. Tutors are prepared to help writers of all levels and abilities at
any stage of the writing process. Sessions typically last between 20-30 minutes. While tutors will
not write, edit, or grade papers, they will help students develop more effective invention and
revision strategies.
University Library
The University Library provides many services in support of research across campus and at a
distance. We offer over 200 electronic databases containing approximately 250,000 eBooks and
82,000 journals, in addition to the 72,000 items in our print collection, which can be mailed to
students who live more than 50 miles from campus. Research guides for each subject taught at
TAMUCT are available through our website to help students navigate these resources. Oncampus, the library offers technology including cameras, laptops, microphones, webcams, and
digital sound recorders.
Research assistance from a librarian is also available twenty-four hours a day through our online
chat service, and at the reference desk when the library is open. Research sessions can be
scheduled for more comprehensive assistance, and may take place on Skype or in-person at the
library. Assistance may cover many topics, including how to find articles in peer-reviewed
journals, how to cite resources, and how to piece together research for written assignments.
Our 27,000-square-foot facility on the TAMUCT main campus includes student lounges, private
study rooms, group work spaces, computer labs, family areas suitable for all ages, and many
other features. Services such as interlibrary loan, TexShare, binding, and laminating are
available. The library frequently offers workshops, tours, readings, and other events. For more
information, please visit our homepage: http://www.tamuct.edu/departments/library/index.php
Course Calendar: This calendar is tentative and may change throughout the semester at the
discretion of the professor.
Date
1/19 T
Topic
Investments: Background
Ch.
1
1/26 T
Asset Classes and Financial Instruments/
Security Markets
2/3
2/2
Mutual Funds/Risk and Return
4/5
2/9 T
2/16 T
2/23 T
Picking Stocks Event #1
Exam 1
Efficient Diversification
6
3/1
3/8
3/15
3/22
3/29
4/5
4/12
4/19
4/26
5/3
5/10
Capital Asset Pricing
Behavioral Finance
SPRING BREAK
Bond Pricing
Bond Portfolios
Macroeconomic and Industrial Analysis
Equity Valuation
Picking Stocks Event #2
Exam 2
Picking Stocks Event #3
Closing Bell
T
T
T
T
T
T
T
T
T
T
T
T
7
9
10
11
12
13
Assignment Due
1-6, 11
(Do not have to turn in)
1-11 Do not turn in,
12, 15, 19,20, 24, 29 /
1-11 Do not turn in,
12-15, 17, 20, 21
1-10 Do not turn in,
11, 13, 14, 18, 19, 22-24/
1-8, 11-14, 16, 18, 19
1-4 Do not turn in,
5-12, 19-21
3, 4, 6, 9, 11, 21-23