‘INVESTMENTS’Lahore School of Economics

Course: Investments (FNC 402)Class: BBA IVSection: A & K Term: Winter 2011Course Instructor: Ms. Maha IjazContact Information: maha_ejaz@hotmail.com

Course Objective

 The main objective of this course is to introduce basic Investmentconcepts to the students and to provide them with conceptualbackground as well as practical tools to undertake financial investmentdecisions.

 The determinants of investment decisions for investors are analyzed anddifferent assets such as money market accounts, bonds, and commonstocks are evaluated. Basics of derivatives such as Options and Futuresare also covered.

In addition students will get a primary exposure to tracking and makingsense of global as well as local financial markets information, throughmarket-data gathering and trend-analysis.

Teaching Strategy

 The teaching methodology includes lectures, discussion sessions,quizzes, assignments, and group presentations.

Emphasis will be placed on attendance, participation, and contribution inclass.

Core Reading List

1) C.P.Jones: Investments, Analysis & Management, 9th edition

NOTE: Book is available at Galaxy Book store.

 

2) CFA Level I, Fixed income, derivatives & alternativeinvestments

Group Project

Group of students will work on a Publicly listed company. They are expected toanalyze the stock of the company based on the common stock evaluationtechniques learned. They would also analyze the whole economy, specificindustry and stock market performance over the years. Based on this analysis& following the top down approach, group is expected to analyze the stock andrecommend a buy/ hold/ sell strategy for the stock.A Group presentation (15 min) on the equity portfolio with a topic focus and a12 page report (11/2 line space, 12 Font) will be required at the end of thesemester.

Checklist :a) Form your 3-4 student groupb) Choose a stock to analyzec) Write down brief analysis of economic situation of the country &

performance of stock market over the yearsd) Recommend a buy/hold/sell strategy for the stock selected

Assessment Criteria

Final exam: 35% (Cumulative)Mid-term exam: 25%Assignments: 10% (Article Discussions & Assignments)*Group Presentation: 10%Quizzes: 15%Class Participation: 5%

*Every group has 3-4 students.

SYLLABUS

I. Introduction to Financial Assets & Markets

II. Primary & Secondary Markets (Trading Mechanisms)

III. Risk & Return Considerations

IV. Fixed Income Securities: Bonds

V. Equities: Valuation

VI. Equities: Analysis

 

VII. Derivatives: Futures & Options Basics

COURSE: INVESTMENTS (FNC-402)

Course Outline

Lecture

Lecture Sessions Chapters

Session Details

1 Understanding Investments 1 Introduction, Lecture

2 Understanding Investments 1 Lecture,Discussion/ Assignment

3*1 Investment Alternatives 2 Lecture,Discussion/ Assignment

4 Investment Alternatives 2 Lecture,Discussion /Assignment

5 Indirect Investing 3 Lecture, DiscussionAssignment

6 Indirect Investing 3 Lecture, Quiz # 1

7 Securities Markets 4 Lecture, Discussion

8 How Securities Are Traded  5 Lecture, DiscussionAssignment

9 How Securities Are Traded  5 Lecture, DiscussionAssignment

10 Returns and Risks FromInvesting 

6 Lecture, DiscussionAssignment

11 Returns and Risks FromInvesting 

6 Lecture, Quiz # 2

12 Bond Yields And Prices  17 Lecture, DiscussionAssignment

13 Bond Yields And Prices  17 Lecture, discussion/Revision

14 MID-TERM EXAM(all chapters covered)

15 Bonds: Analysis and Strategy 18 Lecture, DiscussionAssignment

16 Bonds: Analysis and Strategy 18 Lecture, DiscussionAssignment

17 Derivatives: FRA CFA Lecture, DiscussionAssignment

18 Derivatives: FRA CFA Lecture, Quiz # 3

 

19 Derivatives: Interest rateswaps

CFA Lecture, DiscussionAssignment

20 Derivatives: Interest rateswaps

CFA Lecture, Discussion

21 Derivatives: Interest rateswaps

CFA Lecture, DiscussionAssignment

22 Derivatives: options CFA Lecture, DiscussionAssignment

23* Derivatives- Options CFA Lecture, DiscussionAssignment

24 Derivatives- Futures Basics CFA Lecture, discussionQUIZ – 4 (Retake quiz)

25* Derivatives- Futures Basics  CFA Discussion, Make-upsession

26 PresentationsGroups 1-6

Executive Summary &Report DUE

27* PresentationsGroups 7-11

28 FINAL EXAM(cumulative)