FIN 583: INVESTMENT ANALYSIS

INSTRUCTOR: Riaz Hussain OFFICE: 431 Brennan Hall

OFFICE HOURS: 1:00 - 3:00 pm on Monday and Wednesday. Other office hours by appointment.

TELEPHONE: Office 941-7497, Secretary 941-4048, Home 347-8077, FAX 941-4825, Send an email

OBJECTIVES: After taking this course, the students will

1. Use Maple in financial analysis.

2. Know the kinds of investments available in the markets.

3. Evaluate different types of bonds, including Treasury securities.

4. Manage a bond portfolio using duration analysis.

5. Develop a framework for the valuation of equities.

6. Understand the basics of portfolio theory.

7. Know the valuation of options.

8. Analyze simple and complex option strategies.

9. Use options for portfolio protection.

10. Analyze real estate and other investment opportunities.

11. Do research to maintain a portfolio of equity investments.

PREREQUISITE: FIN 508

TEXTBOOK: Investment Analysis, by Riaz Hussain, University of Scranton, Scranton, PA 18510, 2001. The sale of this book supports a scholarship at the University.

PORTFOLIO MANAGEMENT: The students are required to maintain a simulated portfolio and report on it periodically. They should concentrate on one industry and focus on five to ten stocks. After doing thorough research and analysis, they should come up with buy, sell, or hold recommendations. Randomly selected students will present informal oral reports on their portfolios. They should write a final report detailing the activities for the entire semester, including a summary of transactions.

The students in this course should keep abreast of the financial markets by reading the Wall Street Journal, and other financial periodicals. They should be able to search anddownload data from the Internet.

EXAMINATIONS: There will be three class tests on September 25, October 23, and November 27, 2007. The final examination is on Tuesday, December 11, 2007.

WEIGHTS of various activities: Class tests (15% each), 45%, Oral reports, 5%, Final Examination, 40%, Final written report, 10%

GRADING POLICY: The final grade of the student will depend upon the percentage score averaged for the two tests, written and oral reports, rank in the class, and the instructor's subjective evaluation of the student's understanding of the material.

Tentative Schedule, 2009

Week

Date

Workbook Chapter

1

8/26

1. Investment Analysis

2

9/2

2. Bond Valuation

3

9/9

3. Treasury Securities and Yield Curve

4

9/16

4. Duration Analysis

5

9/23

First Test (15%)

4. Duration Analysis

6

9/30

5. Stock Valuation

7

10/7

6. Derivative Securities

8

10/14

7. Option Strategies: Simple

9

10/21

Second Test (15%)

7. Option Strategies: Simple

10

10/28

8. Option Strategies: Complex

11

11/4

8. Option Strategies: Complex

12

11/11

10. Alternate Investments

13

11/18

10. Alternate Investments

14

12/2

Third Test (15%)

15

12/9

Final Examination (40%)

Final portfolio report due (10%)
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