FINC 381
Investment Analysis

1. Catalog Entry

FINC 381. Investment Analysis
Three hours lecture (3).

Prerequisite: FINC 331

This course focuses on the theory and practice of investments, covering the topic areas of capital market structure, valuation, security analysis and portfolio management.  The course is designed to develop a theoretical framework for investing and to provide the student with practice in applying the framework to typical investment decision making.

1. Detailed Description of Content of Course

• Structure and Trading of Financial Assets
  • Treasury and Federal Agency Securities
  • Corporate Securities
  • Municipal Securities
• Portfolio Theory and Management
  • Risk and Return
  • Portfolio Optimization
• Asset Pricing
  • Capital Asset Pricing Model
  • Dividend Discount Model
  • Other Asset Pricing Techniques
• Stock Options
  • Fundamentals of stock options
  • Advanced option strategies and considerations

1. Detailed Description of Conduct of Course

This course is a combination of lecture, case presentation, and discussion.

1. Goals and Objectives of the Course

Upon successful completion of the course, students will be able to:

• identify various investment instruments offered in the financial markets.
• identify various financial markets.
• describe strategies with long-, short-, and leveraged (margin)- investing
• measure the risk/expected return of individual securities as well as a portfolio.
• construct an optimal portfolio given a set of financial assets.
• differentiate between technical and fundamental analyses in predicting the future performance of assets.
• apply fundamental analysis in predicting the future performance of assets.
• recognize and implement option strategies for leveraged return and investment hedging applications.

1. Assessment Measures

Graded assignments may include in-class tests, a final examination, the assignment and presentation of problem exercises, papers, and class preparation and participation.

1. Other Course Information