UNCW
Department
of Economics & Finance
MBA
536: Investment Management
Spring 2006
Professor Dr. William S.
Compton E-mail: comptonw@uncw.edu
220-A
Cameron Hall Office
phone: (910) 962-3468
Office Hours M,W,F 12:00-1:00pm; TTh 10:00pm-1:00pm, and by appointment.
Class Meetings Section Hours Days
Location
01
Text: Custom Published Textbook for
MBA 536 Spring 2006.
Calculator A financial calculator, and the ability to use it, is required for this course. The TI BA II+ is recommended and should be brought to class every day. Time Value of Money exercises, including a list explaining BAII+ keys, are available online.
Course Notes MBA 536
Investments Management Lecture Notes and Supplements
(Available online and through Kathy Erickson: Please review first chapter notes before we
meet on Monday, March 13th).
Description: This unit focuses on three key areas of
investments: The Financial System, Security Valuation,
and Portfolio
Management.
The Financial System includes security markets,
security types, security trading, historical performance, indexes, and mutual
funds.
Security Valuation includes time value of
money, discounted cash-flow, financial ratios, benchmarks, the EMH, and the
CAPM.
Portfolio Management includes risk and
return, modern portfolio theory (diversification), and asset allocation.
Objectives: Upon completion of the course, you
should:
1. Be
familiar with the financial markets and major types of securities (i.e. asset
classes).
2. Understand the basics concepts
underlying stock and bond valuation.
3. Be
familiar with some derivative assets (options & futures).
4. Understand
the historical relationship between the risk-return trade-off and the major
asset classes.
5. Be familiar with modern
portfolio theory (MPT) and the mathematics of diversification.
6. Be
familiar with the efficient market argument and market anomalies.
7. Be
familiar with mutual funds and their performance evaluation.
Grading: Assignments
Midterm
Exam ...............................… 100
points
Final Exam
....................................… 100
points
Homework…………………..………..… 1-10 points per homework
End of Semester Group
Report.......... 60 points
End of Semester Individual
Report...... 40 points
Exams: Exams will consist of multiple-choice questions/problems, and 2-3 long problems/essays. Exam reviews are available on the web. You may bring one 4x6 index card with anything on it (except purloined answers!) to each exam. Hand held calculators will be required during exams, but they cannot be shared. Exam material will come from lectures, assigned readings, and homework. Solutions to end of chapter problems can be found on the web at Textbook Solutions.
Make-up If
you must miss an exam, and know this in advance, please let me know and we can
schedule a make-up. Otherwise, be sure
you can document an excused absence so you can make-up the exam and receive
full credit.
Homework Graded
homework assignments are also posted. I will evaluate the homework
primarily on effort and appearance.
Note: I expect graduate students to present all material in the best possible
light. If it looks bad and shows half-hearted
effort, I grade harshly. Please note that I will be looking for your best
effort on the homework. Photocopies of
homework will not be accepted. Please adhere to the following rules
a) If homework is more
than one page, staple it in the upper left hand corner.
b) Late homework is not accepted. If a problem is anticipated, turn it in
early.
The
printer was down is not an excuse.
(I
will make allowances for the most extreme cases.)
c) Homework should be typed.
If
done in pencil or pen, there should not be any scratch outs (use liquid
paper).
Attendance Use your better judgment. I will not review class material
for those who miss it in class. Students are responsible for keeping up in
class and staying current in their assignments.
I encourage you to have a friend in class that can update you on what
you missed (e.g., change in assignment, exam date, etc.) should you find it
necessary to miss a class.