fin303 stock and investment analysis (external) 201001.docVIP

Macao University of Science and Technology Faculty of Management and Administration Bachelor of Business Administration Academic Year 2010/2011 – 1st Semester Course Code: FIN303 Course Title: Investment Class: D1, D2, D3, D4 Instructor: Song, Yu Tam, Kwo Ping COURSE DESCRIPTION The course aims to provide students with a thorough foundation in securities analysis and portfolio management. After some introductory coverage, we will study value analyses for common stocks and a variety of financial instruments. Furthermore, we will study risk, portfolio theory, CAPM, the efficient market hypothesis, and performance measurement. Specific topics include: *1: The investment Environment *2: Asset class and financial instruments *3: How securities are traded *4: Mutual funds and other investment companies *5: Learning about return and risk from the historical record *6: Risk aversion and capital allocation to risky assets *7: Optimal risky portfolios *8: Index models *9: The capital asset pricing model (CAPM) *10: Arbitrage price theory and multifactor models of risk and return *11: The efficient market hypothesis *12: Behavioral finance and technical Analysis *13: Empirical evidence on security returns Objectives Upon completion of the course, you should: 1. Be familiar with the basic types of securities (asset classes) used for investing. 2. Understand the importance of diversification in making portfolio decisions. 3. Understand the relationship between expected return and risk. 4. Understand the fundamentals of stock and bond valuation. 5. Understand the factors that influence rates of return (real vs. nominal). Textbook Textbook: Bodie, Kane and Marcus, Investments, 8th Edition, McGraw-Hill International Edition, 2009. ISBN: 978-007-127828-7 REFERENCES The Wall Street Journal (required), Business Week, Economist Fortune, Barrons Weekly A Random Walk Down Wall Street Burton G. Malkiel, W.W. Norton Company Portfolio Selection Harry M