MBA640 Investment Management

for F2P 2010

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Mission Statement: The mission of the School of Graduate and Professional Studies at Park University is to provide leadership and directions to Park University's graduate and professional programs to assure that they are specialized, scholarly, innovative, and designed to educate students to be creative, independent, and lifelong learners within the context of a global community.

Vision Statement: Park University's School of Graduate and Professional Studies will be an international leader in providing innovative graduate and professional educational opportunities to learners within a global society.


MBA 640 Investment Management


F2P 2010 MBD


Naseem Al Rahahleh


Assistant Professor of Finance


Ph.D. - University of New Orleans
M.S. - University of New Orleans

Office Location

Herr House, Room 7

Office Hours

Monday-Wednesday-Thursday 9:00 am – 12:00 noon OR by appointment

Daytime Phone

(816) 584-6376


Class Days


Class Time

5:30 - 9:50 PM


FI 360 (Formerly FI 640)

Credit Hours



Main Textbook (Required):
Fundamentals of Investments, 5th  Edition, Bradford D Jordan and Thomas W. Miller, McGrow-Hill, ISBN-13: 9780077283292.

Reference Textbook (Optional): Essentials of Investments, 8th Edition, Zvi Bodie, Alex Kane, and Alan J. Marcus, McGrow-Hill, ISBN-13: 9780077339180.

Textbooks can be purchased through the MBS bookstore

Additional Resources:

Wall Street Journal is recommended, since many articles appearing in Wall Street Journal are strongly related to the course materials.

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Course Description:
MBA 640 Investment Management: An analysis of various debt, equity, and derivative investment vehicles. Various theories of valuation of stocks, bonds, options, futures, real assets, and other securities will be applied to each individually and in the context of portfolio management. Prerequisite: FI 360 (Formerly FI 640)

Educational Philosophy:

  1. Create a positive learning environment by being clear and understandable, acknowledging the student interests and their diverse talents, providing prompt feedback.
  2. Try to teach the students the basics of learning. Critical thinking will not be achieved if the students are not getting the main idea of the subject. Ultimately, I target the quality of learning and not the quantity.
  3. Motivate my students to engage in class activities and into class discussion.

Learning Outcomes:
  Core Learning Outcomes

  1. Analyze an investment using a variety of techniques.
  2. Analyze the impact of taxes upon the investment decision.
  3. Explain the Capital Asset Pricing Model and the Arbitrage Pricing Theory.
  4. Identify the various types of securities available in the market.

  Instructor Learning Outcomes
  1. To familiarize the students with the fundamentals of investment analysis. Topics include investment environment, portfolio theory, asset pricing models, efficient markets, behavioral finance, stock analysis, bond analysis, and options and futures valuation.
  2. To give the students the opportunity to establish a profitable portfolio with a fictional initial balance.
  3. To enable the students to conduct research related to investment topics.
Core Assessment:

Class Assessment:


There will be two exams during the semester (Midterm and final). The final is comprehensive in nature and will take place as indicated on the class schedule. All exams will contain problem and essay-type questions (and possibly a few multiple-choice questions and short questions (True or False). Make-up exam can only be given before the actual exam. Unless there is a reason beyond your control, e.g. automobile accident, medical excuse, you are expected to take the exam with the rest of the class. However, if you absolutely cannot make it then you must let me know before the exam.

Homework Assignments:

I will assign homework for each subject. You are expected to work through these problems individually and turn them for grade.
Class Participation:

Your participation grade is based on the quality of your inputs into class discussions and your attendance. Your attendance is required. Students are expected to attend all classes regularly and punctually. Parking is often a hassle; allow enough time for it. Please enter the classroom with as little disruption as possible. Two late arrivals will count as one unexcused absence. My expectation is that you do not leave the classroom in the middle of a lecture. Please prepare yourself for this. Your class participation will count 5% of your course grade. Participation is important to understanding the course material, so I will be monitoring your participation throughout the course. 

Portfolio Management Project

The purpose of this exercise is to establish a profitable portfolio. At each step of your decision process, you need to justify your decisions. Your pool of possible candidates for your portfolio is not limited. However, the Company should not be a bank or a financial institution of any kind including insurance companies. The project should contain 10-15 typed pages as well as a presentation of main findings. You should answer all questions and show your work.


Midterm Exam: 30%
Final Exam: 35%
roject: 20% {Portfolio Management}
omework Assignments: 10%
Attendance and Participation: 5%

The following grading scale will be used in determining your final letter grade:
90 – 100          A 
80 – 89
0 – 79            C
0 – 69            D
elow 60          F

Late Submission of Course Materials:

Points will be deducted for late assignments. Late homework will be penalized at the rate of 10% per day, unless a plausible and documented excuse is presented. Assignments more than 2 days late will not be accepted.

Classroom Rules of Conduct:

Class disruptions will not be allowed. Students are expected to assist in maintaining a classroom environment that is conducive to learning. To assure that students have an opportunity to gain from the time spent in class; students are prohibited from using cell phones or beepers, reading newspaper, sleeping or engaging in any other form of distraction.

 If you do not understand the material, it is your responsibility to ask questions. Students are encouraged to ask questions during lecture and after lecture to receive clarification about the material we have just covered. You can also see me during my office hours.

Course Topic/Dates/Assignments:

Tentative Class Schedule:
ThisCourse Outlineis a general guideline. Deviation may be necessary. Students are responsible for all announcements made in class or posted on eCompanion Course site.



Week 1: Oct. 21, 2010

Introduction: Investment Setting and Overview of Security types. 

Ch. 1: A Brief History of Risk and Return
h. 3: Overview of Security Types
Ch. 5: The Stock Market  

Week 2: Oct. 28, 2010

Capital Asset Pricing Model (CAPM) and Multifactor Models

Market Efficiency

Ch. 12: Return, Risk, and the Security Market Line
h. 7: Stock Price Behavior and Market Efficiency

Week 3: Nov. 4 2,2010

Behavioral Finance, and Technical Analysis 

Ch. 8: Behavioral Finance and the Psychology of Investing 
Exam Review

Week 4: Nov. 11, 2010

Asset Allocation and Efficient Diversification

Ch. 11: Diversification and Risky Asset Allocation

Midterm Test 

Ch.1, 3, 5,7, 8, 12

Week 5: Nov.18, 2010

Asset Allocation and Efficient Diversification

Ch. 13: Performance Evaluation and Risk Management  

Case Study ”Filmore Enterprises: Fundamental Concepts”

Week 6: Nov. 25, 2010

Equity valuation and equity portfolio Management

Ch.6:Common Stock Valuation

Handout: Equity Portfolio Strategies.

Week 7: Dec. 02, 2010

Options, Options Valuation,


Ch. 15: Stock Options

Ch. 16: Option Valuation

Ch.14: Futures Contracts

Final Exam Review

Week 8: Dec 09, 2010


Final Exam: Comprehensive

Academic Honesty:
As a learning community, the University upholds the highest standards of academic integrity in all its academic activities, by faculty, staff, administrators and students. Academic integrity involves much more than respecting intellectual property rights. It lies at the heart of learning, creativity, and the core values of the University. Those who learn, teach, write, publish, present, or exhibit creative works are advised to familiarize themselves with the requirements of academic integrity and make every effort to avoid possible offenses against it, knowingly or unknowingly. Park University 2010-2011 Graduate Catalog Page 20


Plagiarism involves the appropriation of another person's ideas, interpretation, words (even a few), data, statements, illustration or creative work and their presentation as one's own. An offense against plagiarism constitutes a serious academic misconduct.  Although offenses against academic integrity can manifest themselves in various ways, the most common forms of offenses are plagiarism and cheating. Plagiarism goes beyond the copying of an entire article. It may include, but is not limited to: copying a section of an article or a chapter from a book, reproduction of an art work, illustration, cartoon, photograph and the like and passing them off as one's own. Copying from the Internet is no less serious an offense than copying from a book or printed article, even when the material is not copyrighted.

Plagiarism also includes borrowing ideas and phrases from, or paraphrasing, someone else's work, published or unpublished, without acknowledging and documenting the source. Acknowledging and documenting the source of an idea or phrase, at the point where it is utilized, is necessary even when the idea or phrase is taken from a speech or conversation with another person.

Park University 2010-2011 Graduate Catalog Page 20

Attendance Policy:

Instructors are required to maintain attendance records and report absences. Excused absences can be granted by the instructor, for medical reasons, school sponsored activities, and employment-related demands, including temporary duty. Students are responsible for any missed work. Absences for two successive weeks, without approved excuse, will be reported to the Director of the individual graduate program, or to the Executive Director for the Graduate School, for appropriate action. Students with such a record of absences, without an approved excuse, may be administratively withdrawn from the class and notified that an "F" will be recorded, unless the student initiates official withdrawal from the class(es).Park University 2010-2011 Graduate Catalog Page 24

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: .


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Last Updated:10/5/2010 10:08:36 PM