Investments full course outline

Course Syllabus

Course Name and Number: FNCE 301 - Investments

Course credits: 3

Method of Delivery: Online

Online Course Start Date: September 29, 2014

Course End Date: December 12, 2014

Name of Instructor: Larry Earnhart, Ph.D.

Instructor Contact Information: Use UCW Email Dropbox

1.0 Course Description:

This course explores the many types of investments, and their respective risks, historic yields, and regulation: stocks, bond, option, annuities, insurance, foreign exchange, precious metals, real estate, and other investment avenues are considered. Students will review the major alternative approaches for selecting specific investment instruments and identify the advantages and disadvantages of domestic vs. international markets.

1.5 Course Prerequisite(s): None

2.0 Learning Goals:

To achieve a basic understanding of the financial services industry and its products.

3.0 Learning Outcomes:

At the end of this course the learner will be able to:

1. Identify how the financial system meets the needs of participants markets 2. Distinguish between the different instruments of the Capital Market: Fixed Income,

Equity, Stock Indexes, and Derivative Securities 3. Illustrate how securities are issued - Primary vs. Secondary Security Sales, Public Offerings, 4. Private Placements, International Market Structures, Margin Trading, Short Sales 5. Specify the key differences between Open-End and Closed-End Funds 6. Compare different investment policies. 7. Make portfolio selections - basic understanding of covariance, and correlation coefficients 8. Explain the Capital Asset Pricing Model (CAPM) 9. Discuss bond characteristics, bond pricing, default risk and rating, 10. Illustrate the basic concepts of Fundamental Analysis: Models of Equity Valuation,

Earnings, Growth and Price-Earnings Ratios, and fundamental of technical analysis 11. Understand the Options and Derivative market: American vs. European Options, Puts,

Calls, Futures and Forward contracts. 12. Discuss the importance of international investing: Diversification Benefits,

International Investment Choices, Risks in International Investing

Syllabus FNCE 301 Page 1

4.1 Required Course Materials, Resources, Textbook(s): • Investments, 8th Canadian ed. Bodie,Kane, Marcus, Perrakis, Ryan. McGraw-Hill, ISBN:

978007138875 OlC/Website URl: http://www.mcgrawhill.ca/college/bodie/

• Stock Market Game Simulator: • http://www.howthemarketworks.com/stock-market-game/join-a-contest.php • Register on the site and sign up for the private contest UCW FNCE301 game • Use password: UCWFNCE301

• Financial Calculator (HP10BII)

o You must have this calculator or one like this for the class (or download a simulator - see below). I can only assist students who use this calculator and cannot help those using other calculators

o -OR Follow this link to download a free HP10BII simulator for your desktop: http://www.educalc.net/2336211.page

5.1 Recommended Course Materials, Resources, Textbooks:

• Publication Manual of the American Psychological Association, APA, 6th edition

• Globe and Mail

• Financial Times.

• See Appendix for a small selection of web resources

6.0 Course Schedule:

Week Topic Learning

Course Activities

1

Part 1 Introduction

Ch. 1,2,3

Top Three principles: 1) Provide a general overview of

the investment environment 2) What the financial markets and instruments

are 3) How securities are traded

Start Stock Trading Game

Forum Questions 1, 2, 3

Review Multiple Choice Quiz Review Probs. Ch. 1-3

2

Part 2 Portfolio Theory

Ch. 4,5,6

Top Three principles: 1) What risk is 2) Risk tolerance and risk aversion 3) Optimization of the risky portfolio

Present Game Results to Class Forum Questions 4, 5, 6

Review Multiple Choice Quiz

Review Probs. Ch. 4 – 6

3

Part 3 Equilibrium

Capital Markets

Ch. 7,8

Top Three principles: 1) The Capital Asset Pricing Model

(CAPM) 2) The Markowitz Model 3) Arbitrage Pricing Theory

Present Game Results to Class 1st Problem Set Due Ch. 1 – 6

Forum Questions 7, 8

Review Multiple Choice Quiz Review Probs. Ch. 7 – 8

4

Ch. 9,10, 11

Top Three principles: 1) Random walks and the efficient

market 2) Technical analysis vs. behaviour

analysis 3) The Index model

Present Game Results to Class Forum Questions 9, 10, 11

Review Multiple Choice Quiz

Review Probs. Ch. 9 – 11

5

Part 4 Fixed- Income Securities

Ch. 12

Top Three principles: 1) What are the types of bonds 2) Bond prices 3) Bond yields

Present Game Results to Class Forum Question 12

Review Multiple Choice Quiz

Review Prob. Ch. 12

6

Ch. 13, 14 Top Three principles: 1) Bond yield curve 2) Interest rate risk 3) Active and passive bond management

Present Game Results to Class 2nd Problem Set Due Ch. 9 – 12

Forum Questions 13, 14

Review Multiple Choice Quiz Review Probs. Ch. 13 – 14

Syllabus FNCE 301 Page 2

7

Part 5 Equities Ch. 15,16

Top Three principles: 1) Analysis of securities – how to value 2) Corporate vs. economic analysis 3) Application of financial statements to stock

analysis

Present Game Results to Class Forum Questions 15, 16

Review Multiple Choice Quiz

Review Probs. Ch. 15 – 16

8

Part 6 Derivative Assets

Ch. 17,18

Top Three principles: 1) Understanding the difference between the

call and put contract 2) Use of option strategies 3) Option valuation – Black-Scholes

Present Game Results to Class

Forum Questions 17, 18 3rd Problem Set Due Ch. 13 – 16

Review Multiple Choice Quiz

Review Probs. Ch. 17 - 18

9

Ch. 19 Part 6 Active

Portfolio Management

Ch. 20

Top Three principles: 1) Futures, forwards & swaps 2) Understanding actively managing the

portfolio 3) Understanding timing the market

Present Game Results to Class Forum Questions 19, 20

Case Study Due

Review Multiple Choice Quiz Review Probs. Ch. 19 - 20

10

Chapters 21,22

Top Three principles: 1) Understanding international benchmark

indexes 2) Understanding hedging 3) Understanding mutual funds

Present Game Results to Class Forum Questions 21, 22

Review Multiple Choice Quiz

Review Probs. Ch. 21 - 22

11

Ch, 23

Last Week of Class

Top Three principles: 1) Understanding international diversification 2) Understanding risk 3) Understanding Home Bias

Forum Question 23

Final Presentation of Game Results to Class Due Wed.

4th Problem Set Due Friday

Ch. 17 – 23

Final Stock Game written report Due Sunday

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7.0 Required Assignments or Activities, Distribution of Marks and Due Dates:

Assignment

Description

Percent of Total Course Grade

Due Date

Initial

Register for the Stock Market Game Contest

None

Week 1

Stock Market Game

Contest

Prepare a portfolio of Stocks and Bond Mutual Funds starting in week 1. (no stock mutual funds)

Each week you will present your portfolio results to the class via forum.

The goal is to achieve the highest return possible

Guidelines for the Stock Market Game Report: At the end of this course you will upload a report to Turnitin.com between 8 - 10 pages long not including cover page, table of contents, introduction or references. In addition a final presentation to the class is also expected.

Section 1- The initial portfolio- Please address the rationale why you have selected the portfolio. Indicate your investment objectives, a rationale on your individual selection and your individual role in this project.- Maximum 2 pages

Section 2 - Make notes of each change and write about the reasons you made the change (if applicable). If you didn't make any change, provide supporting reasons on the why.- Maximum 3 pages

Section 3 - Final portfolio. Write a brief description of each stock or bond fund and the reasons for your selection. Maximum 3 pages.

Present the reasons why you made any changes in your portfolio during the course. The instructor is looking for a professional presentation. In your report you must use concepts and information from the course material for full marks.

35 Total

5

For weekly results posts

20

for written report

10 For presentation

and class discussion

Weekly Reports

Final Report Due Week

11

Forums

There will be approx.1 forum question per chapter – You must post an answer plus at least one additional comment or question – (and saying “great post” doesn’t count)

33

Weekly

Problems Problem sets – 4 sets of problems to work out individually and hand in.

20 Approximately

every 3 weeks

Case Study The Case Study is to be uploaded to Turnitin via MyUCW and must be written in APA Style. Select a publicly-traded Canadian corporation, research it and write up a report that:

• Gives a short history of the company and why you chose it

• Gives the current financial status of the company • Discusses analyst reports on the company • Discusses the latest financial reports (profit & loss,

balance sheet, cashflow) • Explains relevant financial ratios • Gives a good rationale for whether or not it is a good

buy based on the concepts from the book The report should be about 5-8 double-spaced pages of content

12

Week 9

Syllabus FNCE 301 Page 4

8.0 Assessment Rubrics: ALL WRITTEN WORK MUST BE WRITTEN USING APA FORMAT (UNLESS OTHERWISE STATED) INCLUDING COVER SHEET, HEADER, TABLE OF CONTENTS, ABSTRACT, INTRODUCTION, CONCLUSION AND REFERENCES. ALL WRITTEN ASSIGNMENTS WILL BE ANALYZED VIA TURNITIN USING ONLINE LINKS ON THE MYUCW WEBSITE.

GRADING RUBRIC: PAPERS WILL BE GRADED AT 30% FOR PROPER USE OF APA FORMAT 70% FOR ANSWERING THE QUESTIONS APPROPRIATELY.

The instructor wants to see course content in any assignment. If no course content is used the

instructor will fail the paper.

9.0 Grade Point and Letter Grades:

DESCRIPTOR UNDERGRADUATE GRADUATE Exceptional: Normally achieved by a small minority of students who have consistently exceeded performance expectations in all evaluation criteria.

90 -100% A+ (4.33) 95-100% A+ (4.33)

Outstanding: Demonstrates a comprehensive knowledge and understanding of the subject matter and achievement of learning outcomes at the highest levels of performance in all evaluation criteria

85-89% A (4.00) 90-94% A+ (4.33)

Excellent: Demonstrates a comprehensive knowledge and understanding of subject matter and achievement of learning outcomes at high levels of performance in almost all of the evaluation criteria.

80-84 A- (3.67) 85-89% A (4.00)

Very good: Demonstrates a comprehensive knowledge and understanding of the subject matter and achievement of learning outcomes at well above average levels of performance in most of the course evaluation criteria.

76-79% B+ (3.33) 80-84% A- (3.67)

Good: Demonstrates substantial knowledge and understanding of the subject matter and achievement of learning outcomes at average to above average performance levels in most of the course evaluation criteria

72 -75% B (3.00)

68-71% B- (2.75)

76-79% B+ (3.33)

72-75% B (3.00)

Satisfactory: Demonstrates sufficient knowledge and understanding of the subject matter and achievement of learning outcomes at average levels of performance in most of the course evaluation criteria.

64-67% C+ (2.33)

60-63 % C (2.00) 68-71 B- (2.75)

Pass: Demonstrates acceptable knowledge and understanding of the subject matter and achievement of learning outcomes at low to average level of performance in many of the course evaluation criteria.

55-59 % C- (1.67) 60-67% C (2.00)

Marginal Pass: Barely acceptable knowledge and understanding of the subject matter with considerable areas of weakness in many of the course evaluation criteria.

50-54% D (1.00) 50-59% D (1.00)

Fail: Unacceptable performance in most or all of the course evaluation criteria 0-49% F (0) 0-49 F (0)

Syllabus FNCE 301 Page 5

10.0 Class Participation / Expectations: Students are expected to attend every class. If you must be absent, please contact the instructor as soon as possible. For international students within Canada, or Canadians on student loans, the university must report any absences over 8 hours in a semester (all classes combined) to the appropriate authority. This may result in the revoking of a student’s study permit or student loan status. Students for whom this doesn’t apply, still run the risk of grade penalties to their participation mark.

11.0 Late Assignments: Late Assignments will be penalized at a rate of 10% per day.

12.0 APA Guidelines: UCW follows the Publication Manual of the American Psychological Association (APA). All assignments must be submitted with the correct APA formatting and all sources cited according APA standards. The UCW Library provides resources and reference materials for students and faculty to utilize in order that their work meets APA standards.

13.0 Copyright Policy: University Canada West abides by all copyright legislation, regulations, and agreements. All copying must be in accordance with these. Please refer to the Access Copyright Repertoire Lookup Tool and/or consult the UCW Library."

14.0 Privacy Policy: University Canada West is committed to using personal information collected in accordance with applicable provincial and federal privacy legislation. Use of the information collected during this course will be used solely for purposes consistent with academic and support services of a post-secondary educational institution. This statement is consistent with UCW's Information Privacy & Security Policy.

15.0 Turnitin Policy: This course requires you to submit some material in electronic form. When this requirement is in place, it will be noted in the course outline, the assignment, or both. The electronic material will be submitted to a service to which UCW subscribes, called Turnitin. This is a service that checks textual material for originality. Turnitin.com is used increasingly in North American universities. For additional information please visit: https://turnitin.com/static/resources/documentation/turnitin/sales/Turnitin_FAQ_Questions_and_Ans wers.pdf 16.0 Plagiarism and Academic Misconduct: Please ensure that you read the section on Academic Misconduct in the University Canada West Calendar located in MyUCW. To find the calendar, click on ‘Library Resources’ then ‘Forms and Calendar.’

Plagiarism: includes, but is not limited to: • Submission of another person’s work as original; • Inadequate attribution given to an author or creator whose work is incorporated in the student's

work; and • Paraphrase or use of material verbatim from a source without sufficient acknowledgement.

Falsifying Materials: includes, but is not limited to: • Fraudulently manipulating laboratory processes, electronic data, or research data in order to achieve

desired results; • Submitting work prepared by someone else (e.g., commercially prepared essays) as one's own; • Citing a source from which material was not obtained; and • Submitting false records, information or data, in writing or orally.

Cheating : includes, but is not limited to: • Submitting the same work for different courses without prior permission from the faculty member; • Copying another person’s answers or other work;

Syllabus FNCE 301 Page 6

• Sharing information or answers when doing take-home assignments, tests, and examinations except where the instructor has authorized collaborative work;

• Having any unauthorized materials or equipment in an examination or test; • Submitting an assignment completed (or partially completed) by someone else; • Falsifying or making up data or bibliographic information; • Impersonating a candidate in an examination or test, or being assigned the results of such

impersonation; • Reproducing, sharing or otherwise making unauthorized copies of UCW materials in any format; • Using technological means such as cell phones, data storage units and other electronic devices

without prior permission from the faculty; and • Assisting others or attempt to help others to engage in any conduct described above or any other

activities prohibited by UCW. Penalties for Academic Misconduct Penalties for academic misconduct include, but are not limited to: • At the course level:

o Written reprimand for retention in the student file (no transcript entry) o Repetition of the assignment or completion of a different, but similar, assignment (no transcript

entry) o Failing grade for the assignment (no transcript entry) o Failing grade for the course (recorded on transcript)

• At the program level: o Disciplinary probation for a defined period with written documentation retained in the student’s

file (transcript notation for period of probation) • At the University level:

o Suspension (permanent transcript entry) o Expulsion (permanent transcript entry) o Rescission of degrees granted (permanent transcript entry)

16.1 Instructor Biography:

Dr. Larry Earnhart - Larry has worked in the chemical production industry in the U.S. for small to large- sized chemical manufacturing companies first as a Laboratory Manager then as Operations Manager in various production units. He has also been Safety Manager, Environmental Manager, Quality Manager and Project Manager, among other things. After leaving the U.S. for Victoria, BC he has owned a restaurant and has been a financial advisor licensed to sell stocks, bonds, mutual funds and insurance and has owned a small franchise business. Currently he is a business consultant.

Syllabus FNCE 301 Page 7

Appendix Web Resources

• Sedar - http://www.sedar.com/homepage_en.htm - Allows search of publicly traded companies and

financial profiles of TSX listed firms. • Globe Investor - http://www.theglobeandmail.com/globe-investor/ - Research Canadian and foreign

equities and receive up-to date market information. • Bay Street.ca - http://www.baystreet.ca/ - Need some help picking your stocks? See what the

experts recommend at this site. • The Investment FAQ - http://invest-faq.com/ U.S. site providing a refresher on the stock market and

personal finance.

• TSX http://www.tmx.com/ Canadian stock market site

• Canadian Business News http://www.canadianbusiness.com/ Vast source of news on Canadian & global markets, stocks and other investor info.

Retirement Planners • CBC News Article About Retirement Calculators

http://www.cbc.ca/news/business/taxseason/story/2009/12/29/f-taxseason- calculators.html

• Globe Investor http://www.globeinvestor.com/resources/personalfinance/rrsp/retirement_calc/CARetirementPlan.ht ml

• Royal Bank http://www.rbcroyalbank.com/investing/investment-advice/retirement- calculators-tools.html

•

Socially Responsible Investing

• Guide To Socially Responsible Investing from RIA

• Meritas Funds

• Year 2007 Directory for Social and Ethical Investors, Consumers, and Businesses http://www.goodmoney.com/directry.htm

Other Sites

• Financial Pipeline - dedicated to providing financial knowledge and education to anyone and everyone with even a passing interest in Finance http://www.finpipe.com/

• Yahoo Canada Finance Site - http://ca.finance.yahoo.com/ • MSN Canada Finance Site - http://money.ca.msn.com/ • Globe Investor - http://www.theglobeandmail.com/globe-investor/ • Investor Education Fund - http://www.getsmarteraboutmoney.ca/en/about-

ief/Pages/default.aspx#.Ur8uFfRDuSo • Corporate Governance Site - http://corpgov.net/

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