Dr. G. D’Anne Weise FINANCE 3582-SYLLABUS … · FINANCE 3582-SYLLABUS INTERNATIONAL...

International Investments-Online (2015) 20-Jan – 15-May

Dr. G. D’Anne Weise

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FINANCE 3582-SYLLABUS INTERNATIONAL INVESTMENTS-SPRING 2015

Welcome to Spring Semester 2015! On-line classes have often been criticized for the lack of face-to-face communication and human connection. However, today’s technology allows us to keep in close contact while learning at a distance. I look forward to getting to know you and you getting to know me!

Finance 3582, International Investments, is one of my favorite topics because the material opens the imagination of investors. Imagine being able to access markets 1000’s of miles away! Imagine being able to profit from exchange rate differentials or emerging market opportunities! I like to try to image a way to convince the University to pay for travel expenses to monitor my investments! (Not a recommended strategy; has not worked well).

This semester is structured to allow you the opportunity to construct a foreign portfolio and to learn how to trade stock through a broker. To this end, you will open a brokerage account at

, an educational online broker, and conduct trading. StockTraks

Instructor Bio One of the most difficult questions for me to answer is: “Where are you from?” I never

know what to say! I was born in Las Vegas, NV, but moved to Barstow, CA at age 3 and then to Scottsdale, AZ at age 4. At age 7 my family moved to London, England where we lived until I was age 15. While in London, we took advantage of my father’s generous employer (Standard Oil of California) and travelled the world: Egypt, Israel, India, Eastern and Western Europe etc.… After 8 years and 64 countries my family moved to San Francisco, CA, followed by a move to a small southern town in Alabama. At 17 I moved away from my family and ‘settled’1 in Tacoma, WA. Three months later I moved to Seattle, WA, and within three years moved to: Fort Collins, CO, Tuscaloosa, AL, Innsbruck, Austria and New Orleans, LA.

At Colorado State University I completed a BS in Business degree (1981) and an MBA degree with an emphasis in Finance, 1984. I then transferred to the University of New Orleans and entered an exchange program at the University of Innsbruck, Austria. Subsequently, I completed a MS in Quantitative Economics, 1985, and a Ph.D. in Finance, 1987. I was the third woman globally to earn a Ph.D. in Finance.

My research interests have varied over the years but remains primarily focused on the pricing and use of derivative securities. You can view a sample of my research by clicking the Faculty Information tab located on the left-hand side of our class screen on mygateway.

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Professor: G. D’Anne Weise Four Ways To Contact Me:

1. E-Mail: [email protected] 2. Cell Phone: 314-607-5949 3. Text Message: 314-607-5949 4. BlackBoard Instant Messaging



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I. COURSE REQUIREMENTS

A. Required . Read daily with focus on the Credit Markets and 1.Wall Street Journal (WSJ)

International News sections. Look for articles related to our Discussion Forum topics and to obtain information for your FX-TRAKS reports. This daily exercise will provide a depth of understanding of the global markets beyond that of a textbook. Click the link to sign up for student rates ($1/wk. for 15 weeks) : wsj.com/Spring15.

2. is located in the ‘Syllabus Folder’. Answer all questions then Syllabus Contract: submit. All students must earn 100% to remain in the course. You are allowed multiple attempts and are encouraged to ask questions to clarify points of confusion.

3. Financial Management (FIN3500) and an overall GPA of 2.0 or better. Prerequisites:

4. When this course is offered on campus, students are in class 2.5 Time Requirements: hours/week, along with the travel time involved and homework. The online version is no different in terms of expectations for your time and involvement. This is an active online course that requires up to 9-10 hours a week, on activities related to this course.

5. As a student in an online course, you are expected to have Technology Requirements: access to the Internet every day. If you have computing problems, it is your responsibility to address these, or come to campus to use the student computing labs. Problems with your computer or other technology issues are not accepted as an excuse for any delays in meeting expectations and deadlines for the course. Go to the Technology link in the Syllabus folder on mygateway to view the requirements and the necessary links.

6. E-Mail Requirements: There are two non-negotiable e-mail requirements:

(i) In the subject line include the following information: Be Specific. FIN3582-Assignment In place of ‘Assignment Name’ identify the exercise, report or lecture Name-Problems #X-#Y.

name to which you will be referring. In place of the ‘X’ and ‘Y’ put the number of the question for which you are having problems if relevant. Students who do not provide the necessary information will receive the following e-mail response: "Your e-mail does not contain the required assignment identification. See the Syllabus, page 2, and/or go to item #9 of the Syllabus Folder, for the required identifying information. Re-send your e-mail after changing the subject line." There is no agreed upon time frame for a response when a student’s name, course number or Assignment information is not identified as required,

(ii) . If you desire a response to your e-mail, you write in either a friendly tone or Be Polite MUSTa professional tone. I will respond in-kind within 24 hours. A response to your e-mail will normally be sent within 24hrs of receipt except when a student writes in a tone that the professor interprets as rude or disrespectful. In such a case, the student will receive the following reply: "Your e-mail is _______ (rude, disrespectful etc…) and is therefore unacceptable. Go to the



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Syllabus Folder, read the Nettiquite statement and read the ‘E-mail Communication’ (item #9 in the Syllabus Folder). Please re-word your e-mail using polite, respectful and diplomatic language, then re-send." A persistently disrespectful student will be sent the following message: “This is the ________ (3rd, 4th etc.) e-mail I have received that is rude/disrespectful/undiplomatic. Consistent with our Contract, I ask that you drop the class. I have sent your e-mails to the Chairman and the Dean along with a request for you to be allowed to drop with an excused grade. This is our final communication. Any other questions should be directed to the Chairman of the Department of Finance.”

7. StockTraks Registration: Trading is a large part of what we will do this semester. StockTrak is an educational, real-time trading platform that allows students to trade stocks, bonds, options, futures, ETFs etc...Our focus will be on trading foreign securities on foreign exchanges. Register on 31-Jan and have fun exploring the platform. The link to StockTraks is in the Syllabus Folder, item #9. Your cost for the simulation is , payable to StockTraks online with a $26.95credit card.

8. Other Requirements Active use of UMSL e-mail Solid background in basic quantitative skills including algebra and statistics Compliance with Netiquette statement

B. Recommended There are many international finance textbooks but I know of only one International Investments text. You are not required to purchase the text because chapter readings are available in the form of Reading Lectures taken directly from the textbook. Consider the following in making your text decision: All Learning Competencies are covered by lecture topics and related exercises. If you decide you need a textbook, go online to www.chegg.com, www.AbeBooks.com or www.bookrenter.com and find an inexpensive copy of: Solnik, Bruno. International Investments. (Prentice-Hall, 2011). The year of the text is not important since Professor Solnik keeps the same basic information in each edition.



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II. LEARNING GOALS, OBJECTIVES AND PHILOSOPHY Course Description: FINANCE 3582 International Investments (3); also INTBUS 3582. Prerequisite: FINANCE 3500. This course explores the concepts of investing and hedging in international markets. Topics include equity and bond markets, global risk management, portfolio diversification, currency risk, asset pricing, and alternative portfolio strategies. Techniques for using derivatives are discussed in the context of hedging exchange rate risk. Reading foreign exchange quotes and understanding the functioning of global markets is central to the course. A prior course in investments is recommended but not required.

A. Learning Goals In Financial Management (FIN 3500) and Financial Accounting (ACCT 2400, 3401 or 3402) classes, students study ratio analysis, stock valuation, bond valuation and portfolio theory. In International Investments, the financial analysis tools previously studied are expanded and applied in a global framework. Over the last two decades, the field of finance has become increasingly technical and specialized. Employers recruiting for financial positions not only require candidates to have an undergraduate or graduate degree in finance, but they also want new employees to exhibit skills and experience beyond those typically found in a traditional academic environment. As a result, professional licensing or certification has become one of the most widely recognized means of demonstrating core competency. This course is designed to prepare you for a portion of the Global Investments segment of the Chartered Financial Analyst (CFA) exams (www.cfainstitute.org).

B. Learning Competencies students should be able to determine and calculate FX rates, cross-AT THE END OF UNIT#1

rates and currency returns in a variety of investment circumstances. This is by far the most important goal because moving forward is difficult without an understanding of the FX rate.

students should be able to identify a solid foreign stock and preform a AT THE END OF UNIT#2risk/return analysis.

students should be able to calculate and interpret the risk and return on AT THE END OF UNIT#3individual foreign bonds. The U.S. T-bond is used as an example and then expanded to foreign bond issues.

students should be able to calculate and interpret the risk and return on AT THE END OF UNIT#4a portfolio that includes at least one foreign security (stock or bond). Portfolio risk is evaluated in the context of unsystematic, unsystematic and total volatility as it relates to the global economy.



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C. Teaching Philosophy One of the main reasons I decided to pursue a career in academia was to have the opportunity to work with future generations of global investment research analysts and educators. I view teaching as central to all of my scholarly activities and it is my hope that my students will join me in learning the value of questioning what may appear obvious. My objectives as a university professor are as follows:

(a) to foster critical thinking skills; (b) to facilitate the acquisition of lifelong learning skills; (c) to help students develop analytical portfolio management skills; and (d) to prepare students to function as competent research analysts.

My overall teaching philosophy is based on two principles:

(a) Active student learning strongly influences students’ ability to address the Learning Competencies; and

(b) Student learning is strongly influenced by the assessment procedures employed. To this end, the StockTraks portfolios are assigned as a way for students to practice each new skill set in a real-world setting



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III. CLASS POLICIES

1. PARTICIPATION: is REQUIRED in order to pass the course and is measured in two ways: (i) Class Discussion Forums, and, (ii) Graded video responses to lecture questions.

Your success in this course will heavily depend on your ability to communicate, engage and participate in all course activities. Successful completion of this course requires that a student keep up with all assignments, coursework and discussions. Timely participation in online discussions is a very important part of this course and participation in these discussions, and other activities as assigned, is not optional. You are expected to prepare and post to discussions in a timely manner consistent with the requirements contained within the course Syllabus. The requirements set forth in this syllabus meet the accreditation requirements for student engagement in online courses. Failure to engage or participate with the class will be counted as a zero.

Students are responsible for all material covered in pre-requisite classes. 2. PRE-REQUISITES:3. LATE WORK POLICY: Given the structure and flexibility of the due dates, late work is not accepted for any reason. Instead, students are encouraged to schedule due dates early in the month. If for any reason something unexpected occurs, you will then have provided yourself with enough of a time cushion to manage your assignments. Each semester students encounter technical problems resulting in the loss of their work. Be sure to back up all your work since technology issues are not an acceptable reason for late submissions. Students are not rewarded for poor planning by providing extra time.

is 4. EXTRA CREDIT: offered to individual students but may be offered to the class as a NEVERwhole. Offering extra credit opportunities to one student while excluding other students creates an atmosphere of inequality and discriminates against students who do not request such opportunities. Any student requesting individual extra credit or extra consideration of any kind, by any definition, will receive a denial of the request. 5. ACADEMIC INTEGRITY: You are responsible for knowing and applying the University’s policies concerning student conduct as stated in the University Code of Conduct. Copy the link below into your browser and read the policies.

http://www.umsl.edu/~studentplanner/Policies%20and%20Procedures/conductcode.html The Unit Discussion Forums are schedule for the 20th day of the assigned 6. Set Due Dates:

month. All other assignments are due at the end of each month. Keep in mind: (i) Although the due dates are at the end of each Unit, the work needs to be

spread throughout each month in order complete the assignments on time. (ii) Submit your work for grading as soon as it is completed. (iii) End of Unit final due dates provide each student with the flexibility to turn in

assignments according to their own schedule. This flexibility will only work if students make a schedule and stick to it. To this end, a Suggested Schedule has been posted in the Syllabus folder. You are encouraged to modify the suggested completion dates to meet your needs.

Once your work has been submitted for credit (iv) it is final. You may not resubmit your work with corrections at a later date, even if it is before the final due date.



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IV. GRADE MANAGEMENT

A. Grade Scale

B. My Gateway Grade Book All points earned in the course will be posted to the My Gateway Grade Book. Students are encouraged to check the grade book to confirm that points earned are properly posted. In order to facilitate proper postings, students are required to: i) put your name on each page of your submission; ii) put the name of the assignment on the first page; and, iii) put the course # on the first page ( ). A 10% penalty will be applied to submission missing the required FIN3582identifiers. C. Grading Feedback Timetable (subject to change) The professor’s ‘Needs Grading’ folder will be checked at least once per week, normally a Monday. Exercises and will be graded within 3 days of the relevant Monday that grades are Lectureschecked. will be graded within 2-days of the assignment due date. Discussions FX-TRAKS Reports will be graded within 5 days of the submission dates. This timetable is an approximation that does not incorporate the number of papers to be graded. When there are few submissions, the turn around time will be less but when there are many the turn around time could be longer. Solutions to graded assignments will be posted after all assignments have been received or on the 1st of each month following the due dates. If a student’s name, course number or Assignment information is not identified as required, there is no agreed upon timetable for feedback to the student. D. COBA Conflict Resolution Procedure In the event you have a problem with your grade or any other aspect of your class experience, you should immediately: Step#1: . State, as specifically as possible, the nature of the problem and Contact the Professordiscuss a resolution with the Professor. This normally solves 99% of any problems. However, if it does not, you can go to the next step. Step#2: of the Department. State the nature of the problem and provide Contact the Chairpersoninformation relating to why the conflict has not been resolved. If this still does not resolve the problem you can go to the next step. Step#3: of the COBA. State the nature of the problem and why the conflict Contact the Dean remains unresolved. Note: If you have read and understood the syllabus but you do not like many of the rules and guidelines, contact me to make sure your understanding is correct. After discussing your points of concern if you are still dissatisfied, it is most likely best to drop the class now so that you can sign up for another class without losing time or money. Continuing in any class with a structure and/or guidelines that are not palatable, binds you to a contract (i.e. the Syllabus) with which you do not agree.

FINAL GRADES WILL BE ASSIGNED USING THE FOLLOWING SCALE

93.0000%-‐100.0000% (+)* A 77.0000%-‐79.9999% C+ 90.0000%-‐92.9999% A-‐ 73.0000%-‐76.9999% C 70.0000%-‐72.9999% C-‐ 87.0000%-‐89.9999% B 83.0000%-‐86.9999% B 67.0000%-‐69.9999% D+ 80.0000%-‐82.9999% B-‐ 63.0000%-‐66.9999% D 60.0000%-‐82.9999% D-‐ Below 60.0000% F



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V. GRADE COMPOSITION (1000pts TOTAL)

A. LECTURES (23.5%) This course uses Voicethread ( ), an online voice/video discussion tool for lectures and VTinteractions. To create your Voicethread account (or link your current account to this course), click the link on the left in the Course Menu. This connection will be remembered on your computer, but if you use a different computer, you may need to re-click the link. If you are not able to view or access Voicethreads, update your Flash plugin at the following link: http://get.adobe.com/flashplayer. To listen to a lecture simply click the appropriate link provided in mygateway. The lecture will begin automatically without further action. Lecture questions are embedded in each presentation and take one of two forms: Practice Questions, video response required questions and lecture question problem sets. There are 11 lectures this semester color-coded peach on mygateway. Each lecture contains two types of embedded questions for you to answer: 1) Practice Questions (PQ) and 2) Video Response questions (VR). The PQs have no point value but provide you with an opportunity to prepare for the exercise and VR questions. The table below provides the lecture titles, due dates and point value of each lecture.

Lecture Titles1. Lec#1: Intro to FX Rates 28-‐Feb 2. Lec#2: Bretton Woods 28-‐Feb 3. Lec#4: Return Analysis 31-‐Mar 3. Lec#5: Risk Analysis 31-‐Mar 4. Lec#6: Problems with Beta 31-‐Mar 5. Lec#7: Global Equity Mkts. 31-‐Mar 6. Lec#8: Bond Analysis. 30-‐Apr 7. Lec#9: Global Bond Mkts. 30-‐Apr 8. Lec#10: Portfolio Analysis 15-‐May 9. Lec#11: Portfolio Analysis 15-‐May

1. Embedded Practice Questions Embedded Practice Questions (0%) 0

1. PQ#1-‐PQ#2 -‐-‐> Lec#1: Intro to FX Rates 28-‐Feb 0 2. PQ#3-‐PQ#4 -‐-‐> Lec#4: Return Analysis 31-‐Mar 0 3. PQ#5-‐PQ#8 -‐-‐> Lec#5: Risk Analysis 31-‐Mar 0 4. PQ#9 –PQ#10-‐-‐> Lec#6: Problems with Beta 31-‐Mar 0 5. PQ#11-‐-‐> Lec#7: Global Equity Mkts. 31-‐Mar 0 6. PQ#12-‐PQ#18 -‐-‐> Lec#8: Bond Analysis. 30-‐Apr 0 7. PQ#19-‐PQ#20-‐-‐> Lec#9: Global Bond Mkts. 30-‐Apr 0 8. PQ#21-‐PQ#23-‐-‐> Lec#10: Portfolio Analysis 15-‐May 0

The practice questions ( ) are designed to provide you a risk-free way to consider the PQmaterial. PQs have no point value and are not submitted to me. You will find the PQs in my



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text comments on the VT lecture along with the solution. It is best if you avoid looking at the solution until after you answer the question on your own. Upon completion you can use the solutions to ‘grade’ your work and level of understanding.

2. Embedded Video Response Questions Video Response Lecture Questions (23.5%) 235

1. VR#1-‐VR#2 -‐-‐> Lec#1: Intro to FX Rates 28-‐Feb 15

2. VR#3-‐VR#5 -‐-‐> Lec#2: Bretton Woods 28-‐Feb 20

3. VR#6-‐VR#7 -‐-‐> Lec#4: Return Analysis 31-‐Mar 15

3. VR#8-‐VR#10 -‐-‐> Lec#5: Risk Analysis 31-‐Mar 20

4. VR#11-‐VR#13 -‐-‐> Lec#6: Problems with Beta 31-‐Mar 30

5. VR#14-‐VR#16 -‐-‐> Lec#7: Global Equity Mkts. 31-‐Mar 30

6. VR#17-‐VR#19 -‐-‐> Lec#8: Bond Analysis. 30-‐Apr 30

7. VR#20-‐VR#22 -‐-‐> Lec#9: Global Bond Mkts. 30-‐Apr 30

8. VR#23-‐VR#24 -‐-‐> Lec#10: Portfolio Analysis 15-‐May 20

9. VR#25-‐VR#27 -‐-‐> Lec#11: Portfolio Analysis 15-‐May 25

All lecture questions, with the exception of the PQs, require a video response. To respond to a

lecture question, click the ‘+’ button in the middle of the lecture screen. After you click the plus sign you will see: ‘ABC’ for text comments, a microphone icon for audio-only comments and a video recorder icon for an audio and visual responses. The lecture questions require you to submit a Video Response (VR) answer the questions. Your responses on to lectures, regardless of format, are VTvisible to me as well as the rest of the class. Therefore, students who add value to the solutions earn higher scores than students who repeat the thoughts of other students.

B. DISCUSSIONS (12.5%) There are 5 graded Discussion Forums, color coded purple, and 1 ungraded Forum titled “ ” The “ ” discussion board is not monitored and it is not Students Only. Students Onlygraded. Students are encouraged to use the student forum to discuss lectures, FX-TRAKS reports and exercises.

Discussion Forums (12.5%) 125pts 1. D#1-‐Truth or Lie? 5:30pm until 6:45pm 23-‐Jan 10

2. D#2-‐Where have you been? 5:30pm until 6:45pm 28-‐Jan 10

3. D#3: Will the Euro Survive? 5:30pm until 6:45pm 20-‐Feb 35

4. D#4: China's Yuan-‐The Next Global Currency? 5:30pm until 6:45pm 20-‐Mar 35

5. D#5: Sanctions Against Russia? 5:30pm until 6:45pm 20-‐Apr 35



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The effectiveness of assignments relies on students interacting with one Discussionanother to foster learning. Learning need not be painful; it can, in fact, be fun! The Discussion topics relate to various issues in the global markets. The topics are intentionally not directly related to the course material and are somewhat controversial. Your grade depends on the number of posts and the quality of those posts. Specifically, (i) Postings should be a minimum of one sentence and a maximum of one paragraph. (ii) Responses should be well written with proper punctuation, spelling and grammar. (iii) Credit will not be assigned to students who use one-word answers. (iv) Participate fully by keeping the discussion alive i.e. ask questions, challenge other

students bring up tangential issues etc.… (v) Encourage further discussion by building on current threads. (vi) Provide real-time dialog by being present during the scheduled 5:50pm-6:15pm time

periods. (vii) Use proper “Netiquette.”

In order to foster real-time dialog, all of the Discussion Forums are scheduled from 5:30pm- 6:45pm on the indicated dates. Some of you are very likely to have problems with this time frame given the structure of this course. As soon as you become aware that you have a time conflict with a scheduled Discussion, go to the Discussion Forum. State the Students Onlyname of the Discussion you need to reschedule and post other times that work better for you. Other students who have conflicts will do likewise and you can arrange a different time. Note: It is the student’s responsibility to arrange more convenient discussion times not the professor’s. Failure to take appropriate steps will result in a zero grade for the discussion

C. EXERCISES (47.5%)

There are 11 graded exercise assignments spread throughout the semester each with a different point value and color-coded blue. The exercises have been constructed using Black Board’s ‘Test’ assessment. The ‘Test’ tool is used only as a delivery/submission/grading medium not because the exercises are quizzes or exams. You are free to use any resources at your disposal to answer the questions.

Exercises (47.5%) 475 1. Syllabus Contract 27-‐Jan 10 2. EX#1-‐Cross Rates 28-‐Feb 20 3. EX#2-‐Discount/Premium 28-‐Feb 30 4. EX#3: FX Applications 28-‐Feb 50 5. EX#4: FS Return Analysis 31-‐Mar 45 6. EX#5: FS Risk Analysis 31-‐Mar 70 7. EX#6: Bond Return Analysis 30-‐Apr 55 8. EX#7: Measuring Bond Risk 30-‐Apr 40 9. EX#8: Portfolio Analysis 15-‐May 60 10. EX#9: Components of Returns 15-‐May 35 11. EX#10: Portfolio Risk 15-‐May 60



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D. FX-TRAKS REPORTS (16.5%) Full Disclosure: This is the first semester that StockTraks has been used in any of my classes. Therefore, my insight into the applicability is limited. After exploring the site for a while, it looks like it will be fun. But if you have problems let me know and be patient as I find a solution! I hope it is fun!!

There are 3 short FX-TRAKS Reports due this semester The FX-TRAKS reports are .intended to provide students with a protected environment to: learn how to trade foreign securities (FS) in a ‘real-world’ setting and apply the lessons of the given Unit. The student’s environment has been constructed so that students do NOT suffer the consequences of bad choices; after all this is a learning experience not a contest. Students are: (i) provided with a hypothetical $100,000 that removes the consequence of losing real money when bad choices are made; (ii) not penalized for losing money and/or constructing inferior portfolios as long as the mistakes are addressed in the report. In other words, a student who made all the wrong choices can still earn an A by following both the guidelines and the spirit of the reports.

FX-‐Traks Reports (16.5%) Date 165pts 1. FX-‐TRAKS#1: Practicing Selection 28-‐Feb 50

2. FX-‐TRAKS#2: Foreign Security Analysis 31-‐Mar 55

3. FX-‐TRAKS#3: Portfolio Analysis 30-‐Apr 60

Create an account at StockTracks an educational trading platform and online brokerage ,firm, by clicking the link here or in the Syllabus Folder, and following the instructions. If you are asked for our class code, type in: UMSL-Fin3582-SP15. You will be asked for $26.95 payable to StockTrak with a credit card. The StockTracks package provides you with $100,000 to invest in foreign stocks, bonds and currency trading on exchanges around the globe. You are required to trade a variety of stocks, bonds and currency this semester. Your grade is not based on whether you have selected a winning portfolio but on how well you apply the class lessons to your trading activity. Success is when a student who picked a lousy portfolio at the beginning of the semester can articulate the errors made by the end of the semester. Managing this portfolio will allow you to learn different types of orders, transactions fees and the how-to’s of foreign investing.

How to begin? First, register an account with by the end of January and StockTracks

explore their website. Go to the StockTraks Research tab and watch a few trading videos and other documents of interest. During the month of January read, explore and absorb information on various companies. Make a list of stocks, bonds and/or currency that you would like to trade.

The FX-TRAKS reports provide you with a safe, private way to learn the basics at your own

pace. You will learn: how to place different types of orders, the impact of transactions fees and the types of analysis most frequently use. You may allocate your funds as you see fit i.e. you may place as little or as much as you deem appropriate in each securities. However, since this is a derivatives class, the majority of your focus should be on options and futures. Specifically,



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1. On Feb. 1st establish FX-Traks Portfolio#1: by going to The Trading Portfolio,StockTraks and implementing your trades. All securities traded this semester, with the three exceptions, identified in 2, are part of your Trading Portfolio. 2. On Feb. 10th, establish FX-Traks Portfolio#2: , by The Buy-N-Hold Portfolioestablishing: i) a long margined position in a FS, ii) a short position in a FS iii) a long position in a bond and (iv) a position in a currency.

3. On Apr. 7th, liquidate Portfolio#1 and Portfolio#2. Positions are now closed. 4. You may allocate your funds as you see fit i.e. you may place as little (as long as it is not zero) or as much as you deem appropriate in each required security. 5. All other securities purchased are part of your Trading Portfolio. You may invest in any stock, bond and currency. 6. You are required to trade at least 1 time per week. 7. You must make a minimum of 30 total trades this semester but no more than 200. 8. You are required to have a good mix of long and short holdings. 9. You are required to place at least three types of orders: Market order, limit order and another of your choice. 10. There are no specific page-length requirements but brevity is appreciated. 11. To watch trading videos login to your StockTrak account, at the top Trading Videos: click the ‘Research’ tab and scroll all the way down to the trading videos. 12. All documents should be named: <FX-TRAKS#X(FIN3582).FirstName,LastName>

Important: StockTraks allows trading on a variety of foreign exchanges. You are required to trade mostly foreign stock, trading on a foreign exchange. The word ‘stock’ is used to include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). The bond can be domestic or foreign but it must be a coupon-paying bond. Finally, the foreign currency (FX) decision is embedded in your FS decision. This means you can satisfy the minimum requirements by trading a FS without a separate currency transaction. However, you may also trade currency as a separate investment.

Margin Requirements IM MM 1. Long Margin 56% 48% 2. Short Margin 61% 53%



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VI. CLASS SCHEDULE IMPORTANT NOTE: All assignments are due at the end of each Unit with two EXCEPTIONS: (i) the Discussions, which have a specific date/time, and (ii) the Syllabus folder assignments. Check your calendar today for any possible conflicts.

PQ = Practice Question; VR = video response required; EX= Exercise; Lec = Lecture.

Syllabus Folder (3%) Due Points Students Only Discussion Forum Link None N/A 1a. Syllabus (SY3582 (SP15)-‐Undergraduate 20-‐Jan N/A 1b. Syllabus (SY6581 (SP15)-‐Graduate 20-‐Jan N/A 2. Suggested Syllabus Schedule N/A N/A 3. Get Your Computer Ready! 20-‐Jan N/A 4. Wall Street Journal Subscription 20-‐Jan N/A 5. D#1: Truth or Lie. 5:30-‐6:45pm 23-‐Jan 10 6. Syllabus Contract 27-‐Jan 10 7. D#2: Investment Advice? 5:30-‐6:45pm 28-‐Jan 10 8. StockTraks Registration 31-‐Jan N/A 9. Netiquette Statement 31-‐Jan N/A 10. E-‐Mail Communication 31-‐Jan N/A

Unit#1: Foreign Exchange (FX) Rates (22%) 1-‐Feb to 28-‐Feb 220 1. D#3: Will the Euro Survive? 5:30pm-‐6:45pm 20-‐Feb 35

2. Lec#1: FX Rates. PQ#1-‐PQ#2. VR#1-‐VR#2 28-‐Feb 15 3. Lec#2: Bretton Woods. VR#3-‐VR#5 28-‐Feb 20

4. Lec#3: FX Applications 28-‐Feb 0 5. EX#1-‐Cross Rates 28-‐Feb 20

6. EX#2-‐Discount/Premium 28-‐Feb 30

7. EX#3: FX Applications 28-‐Feb 50 8. FOREX#1: Foreign Security (FS) selection 28-‐Feb 50

Unit#2: Foreign Security Analysis (30%) 300 1. D#4: China's Yuan-‐The Next Global Currency? 5:30pm-‐6:45pm 20-‐Mar 35

SPRING BREAK 21-‐Mar through 29-‐Mar 2. Lec#4: FS Return Analysis. PQ#3-‐PQ#4 and VR#6-‐VR#7 31-‐Mar 15

3. EX#4: FS Return Analysis 31-‐Mar 45

4. Lec#5: FS Risk Analysis . PQ#5-‐PQ#8. VR#8-‐VR#10 31-‐Mar 20 5. Lec#6: Problems with Beta. PQ#9-‐PQ#10. VR#11-‐VR#13 31-‐Mar 30

6. Lec#7: Global Equity Markets. PQ#11. VR#14-‐VR#16 31-‐Mar 30 7. EX#5: FS Risk Analysis 31-‐Mar 70

8. FOREX#2: Foreign Security Analysis 31-‐Mar 55



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CLASS SCHEDULE (cont.)

Unit#3: Bond Analysis (19%) 190 1. D#5: Sanctions Against Russia? 5:30pm-‐6:45pm 20-‐Apr 35 2. Lec#8: Bond Analysis. PQ#12-‐PQ#18. VR#17-‐VR#19 30-‐Apr 30

3. Lec#9: Global Bond Markets. PQ#19-‐PQ#20. VR#20-‐VR#22 30-‐Apr 30

4. EX#6: Bond Return Analysis 30-‐Apr 55 5. EX#7: Measuring Bond Risk 30-‐Apr 40

Unit#4: Portfolio Analysis (26%) 260 1. Lec#10: Portfolio Analysis. PQ#21-‐PQ#23. VR#23 -‐VR#24 15-‐May 20

2. EX#8: Portfolio Analysis 15-‐May 60

3. Lec#11: Components of Return. VR#25-‐VR#27 15-‐May 25 4. EX#9: Components of Portfolio Returns 15-‐May 35

5. EX#10: Portfolio Risk 15-‐May 60 6. FOREX#3: Portfolio Analysis 30-‐Apr 60



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VII. Help Resources Folder The Help Resources folder is located on the left side of your screen under the course menu. This file currently contains available to you to aid the learning process (see below). 15 resources Students come to this course with various backgrounds and levels of understanding; the Help material provides information to equalize students’ mastery. Other documents will be posted as the need arises as indicated by student requests or questions.

When you have questions about an assignment or a lecture or maybe you are just lost and confused.

check the Help Resources folder and read the posted titles to see if the What to do? First, information you need is available. Remember that new resources are posted to the Help folder on a regular basis. Even if there were no helpful titles last week does not mean there are none this week.

if no help is posted for your question, contact the professor and state the name of the Second,assignment and your question. Response Time: E-mails will be answered within 24 hours. If you need a faster response, you may text, call or IM.

Help Resources 1. Help with Online Learning 2. Where to find FX rates? (Video) 3. FX Abbreviations 4. Demonyms. 5. Links to World Stock Markets 6. Regression? Help!!! (Video) 7. How to Read Bond Prices (Video) 8. Bond Basics 9. Grading Criteria for Lectures 10. How to Trade a Foreign Stock 11. Comparing Regulation in 189 Countries 12. Global Bond Outlook (2014) 13. World Debt by Country (Forbes) 14. Grading Standards and Rubrics 15. Portfolio Quick Facts

The items in the Help Resources folder have no due date and no point value. During the semester students frequently find they need more information. I will add to the Help Resources folder throughout the semester as requested by students.



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VIII. Honor Students There are two finance honor societies at UMSL. They are:

1. Financial Management Association-National Honor Society FMA-NHS) The FMA-NHS is a global organization founded in the 1960s, to provide Professors and practitioners a way to share ideas. Later, the FMA added finance students (in a limited way) to the active and growing organization. The FMA sets objective standards for students to qualify for admission. The UMSL Chapter of the FMA-NHS was founded in 1988. Students with a 3.5 GPA or above may be eligible for admission to both honor societies. For more information click the FMA-NHS link and contact me if you have any questions.

2. UMSL-Finance Honor Society (UMSL-FHS) In 2002, the was established as a way to serve the UMSL-Finance Honor Society needs of students who cannot (or do not want to) pay the FMA-NHS admission fee. The UMSL-FHS has the exact same requirements as the FMA but with no fee. There are other differences between the two Societies as follows:

Differences i. The FMA provides a subscription to the FMA publication. ii. The FMA costs $35.00/year; the UMSL-FHS costs $0.0. iii. The FMA provides a Careers in Finance booklet. iv. The FMA provides an honor pin and an honor certificate. v. The FMA provides a student website for information on careers. vi. The FMA provides national and international exposure. The UMSL-FHS

provides local exposure. vii. The highest GPA student from either Society is given the honor to wear the

FMA-NHS sash at graduation. Similarities

i. The UMSL-FHS and the FMA-NHS both provide an honor certificate. ii. Both have the same GPA and course work requirements. iii. Both look very good on your resume.

If you believe you qualify, go to the course menu and click the Finance Honors folder tab on the Course Menu. Two of the documents listed are applications for the NHS and FHS. Download the appropriate document, fill-in the requested information and submit to me for approval.

Dr. G. D’Anne Weise FINANCE 3582-SYLLABUS … · FINANCE 3582-SYLLABUS INTERNATIONAL...

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