Economics
350-01
Dr. Nozar Hashemzadeh
Investment
Economics
Office: Davis 147
Fall Semester
2005
Phone: 831-5888
"Money is like a sixth sense without
which you cannot make a complete
use of the other five." W. Somerset Maugham
Prerequisites: Official: Econ 105, a cumulative GPA of 2.0, Junior or Senior standing. Recommended: Econ 106, Stat 205, Finance 331, Econ 330.
Economics 350-01 Dr. Nozar Hashemzadeh
Investment Economics Office: Davis 147
Fall Semester 2005 Phone: 831-5888
Office Hours: 9:00-9:30 TTh Course Time: 9:30-10:45/TTh
11:00-12:00 TTh Course Room: Whitt 228
and by appointment
"Money is like a sixth sense without which you cannot make a complete
use of the other five." W. Somerset Maugham
Prerequisites: Official: Econ 105, a cumulative GPA of 2.0, Junior or Senior standing. Recommended: Econ 106, Stat 205, Finc 331, Econ 330.
Course Objective: This course is designed to provide students with a basic understanding of saving and investment environment in the economy, investment analysis, the relationship between the state of the economy and fluctuations in bond prices, stocks, capital assets, and commodity and financial futures.
Required Text: Investments, by Frank Reilly and Edgar Norton, 7th Edition, Thomson Southwestern Publisher.
Investment Game: Details will be given by the instructor. Participation in the investment game is REQUIRED.
Reading: The following is a suggested reading schedule for the chapters from Reilly and Norton.
Course Contents:
Part I. Introduction
1. The Investment Setting
Part II. Investment Environment
2. Return and Risk Basics
3. Selecting Investments in a Global Market
4. Mutual Funds and other Managed Investments
5. Investment Policy Statements and Asset Allocation Decisions
6. Organization and Functioning of Securities Markets
7. Security-Market Indexes
Part III. Managing Risk
8. An Introduction to Portfolio Management
9. An Introduction to Asset Pricing Models
10. Efficient Capital Markets
Part IV: Valuation: Review and Applications
11. An Introduction to Valuation
12. Analysis of Fixed Income Securities
Part V: Equity Securities: Valuation and
Management
13. Economic and Industry Analysis
14. Analysis of Financial Statements
15. Company Analysis and Stock Valuation
16. Technical Analysis
Part VI. Derivative Securities
17. An Introduction to Derivative Instruments
18. Derivatives: Analysis and Valuation
Part VII: Portfolio Management Applications
19. Equity Portfolio Management
20. Fixed Income Portfolio Management
21. Evaluation of Portfolio Management
Recommended: A subscription to the Wall Street Journal or Barron's.
Grades: Final course grade will be computed using the following scheme:
First Hourly Exam 90 points
Second Hourly Exam 90 points
Final Hourly Exam 90 points
Investment Game & Related Activities 30 points
Final grade includes credit for quizzes, homework, class participation, and investment game. Some further observation on grades and exams: All work is due at the beginning of the class period for the date assigned. No assignment will be accepted once that assignment has been discussed in class. All makeup quizzes and exams will be given only if prior arrangements are made reasonably in advance and then only in unusual circumstances.
The final exam for this class is scheduled for Thursday, December 15th at 8:00 AM.
Attendance:
Attendance in class is expected and is an important part of your training. Classes are an integral part of the course and failure to attend the class can be expected to limit what you get out of the course. Frequently, we will have to address issues and questions that may not be covered in your textbook. Questions relating to these issues may show up on your exams!
Students with complete class attendance will be given the opportunity to drop their lowest test grade. This provision applies to the first two exams BUT not the final.
Leaving the classroom while a lecture is in progress is considered disruptive behavior and is totally unacceptable. If you have to leave early for any reason, please discuss it with me before class.
All cell phones must be turned off while the class is in progress.
Honor Code:
"I do hereby resolve to uphold the Honor Code of Radford University by refraining from lying, from stealing or unauthorized possession of property, and from violating the Standards of Student Academic Integrity."
Students are expected to become familiar with the Honor Code and the Standards of Student Conduct. For more information about the Honor Code and the Standards of Student Conduct please refer to the 2005-2006 copy of the Standards of Student Conduct available in the University Planner, in the Dean of Students Office, and/or online at: http://www.radford.edu/~dos-web/studentconduct.htm.[1]
Additional Notes:
Students wishing to withdraw from the course may do so by November 11th.
Students are strongly urged to make use all available investment resources to do their homework and the investment game assignments. In addition, it is mandatory that all reports be typed using available facilities including Microsoft Excel or Microsoft Word.
The syllabus may be changed at the discretion of the instructor as needed.
University Calendar – Fall 2005:
Classes Begin (8 a.m.) August 22 (M)
Last Day to Add/Drop (Undergraduate Students) August 28 (Sun)
Last Day to Change P/F or Audit Options September 5 (M)
Labor Day - Classes in Session September 5 (M)
Last Day for Undergraduates to Apply For Spring Graduation September 9 (F)
Mid-Semester Grades Die by 10:00 AM October 12 (W)
Founders Convocation & Homecoming Weekend October 7 (F)
Registration for Spring Semester Begins October 25 (T)
Family Weekend October 14 (F) - 16 (S)
Last Day to Withdraw with Grade of "W" November 11 (F)
Thanksgiving Break begins after Classes on Saturday November 19 (S) - 27 (Su)
Classes End December 9 (F)
Final Examinations December 12 (M) - 16 (F)
December Commencement December 17 (S)