FI417 Investment Analysis & Management

for SP 2013

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Vision Statement: Park University, a pioneering institution of higher learning since 1875, will provide leadership in quality, innovative education for a diversity of learners who will excel in their professional and personal service to the global community.


FI 417 Investment Analysis & Management


SP 2013 HO


Kao, Robert


Assistant Professor of Finance


Ph.D. – Texas A&M University
M.S. - University of Nebraska - Lincoln

Office Location

MacKay 27C

Office Hours

Monday - Thursday 12:00 - 2:00 PM or by appointment

Daytime Phone



Class Days


Class Time

10:00 - 10:50 AM


FI 360

Credit Hours



Fundamentals of Investments, 6th Edition by Bradford D. Jordan and Thomas W. Miller, McGraw-Hill Publisher Co., 2012

ISBN-9780073530710 MHID-0073530719

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

eCompanion Course Web Site: lecture notes, paper guideline, reading resources, and other class-related materials.

McAfee Memorial Library - Online information, links, electronic databases and the Online catalog. Contact the library for further assistance via email or at 800-270-4347.
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Course Description:
FI417 Investment Analysis and Management: A study of investment alternatives, selection criteria, and portfolio management. Emphasis is placed on economic, financial, and market factors which affect the values of alternative investments, while studying risk management associated with investment management. Prerequisite: FI360 or permission of the instructor. 3:0:3

Educational Philosophy:


  • Establish a classroom where ideas can be shared, students can be challenged in areas of topic learning and real knowledge can be applied.
  • Create an interactive environment which is based on lectures, readings, quizzes, dialogues, examinations, assignments, websites, and topic-related writings.
  • Motivate the class with available on-campus seminars and/or hands-on experiences that would support student learning.

Learning Outcomes:
  Core Learning Outcomes

  1. Perform research on securities.
  2. Define the theoretical and practical application of investing in portfolios.
  3. Define the workings of investment funds and securities markets.
  4. Explain the relationship between current events and investments.

  Instructor Learning Outcomes
  1. Analyze the return on an investment by different methods.
  2. Calculate expected returns and variances for investment portfolios.
  3. Demonstrate the efficient frontier and the importance of asset allocation.
  4. Explain the security market line and the capital asset pricing model.
  5. Apply various security valuation methods.
Core Assessment:

Class Assessment:
Class assessment will be based on the student’s performance on three in-class tests, homework assignments, and portfolio investment report based on Stock-Trak simulation. Your overall score in the course will be determined mechanically as the weighted average of the five component scores.


Your grade will be determined solely by the components listed above. All tests and final exam are in-class and closed book format. Exams cover material from lectures, assigned readings, and homework assignments. Exams will strive to test comprehension and not merely memorization skills.

Test 1 (covering module 1):           20%

Test 2 (covering module 2):           20%

Final Exam (comprehensive):          25%

Homework Assignments:                10%

Portfolio Investment Report:          25%

Total                                        100%

At the end of the course, your accumulated points will be converted to grades based on the following scale:

90% - 100%    = A

80% - 89%      = B

70% - 79%      = C

60% - 69%      = D

Below 60%       = F

All final exams will be comprehensive and will be closed book and closed notes.  If calculators are allowed, they will not be multi-functional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.  Electronic Computers will not be allowed on final exams unless an exception is made by the Dean.

The course grade for students will be based on the overall average of homework and tests taken during the course in accordance with the weighting of the various requirements as stated in the syllabus.

All final exams in all School of Business courses will be comprehensive and will be closed book and closed notes. They will constitute 30% of the total course grade and will not be a take-home exam. They will be completed during the test week in the period designated by the registrar or by the Proctor in the case online courses. If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth. Electronic Computers will not be allowed on final exams unless an exception is made by the Dean of the School of Business.

Late Submission of Course Materials:
Late submission of material will not be accepted without prior arrangements being made with the instructor. No late assignments will be accepted after the regular semester ends.

Classroom Rules of Conduct:
Use of cell phones, pagers, iPOD, or other electronic device is strictly prohibited from class.  Should a student be expecting some sort of emergency phone call (IE baby, child, parent illness), it is the student's responsibility to leave the class to take a call.  With exception to the above listed examples, all phones should be turned off prior to class beginning.

Course Topic/Dates/Assignments:



Chapter, Subject, and Exam


Module 1

Chapter 1: Investment Background, Risk and Return Characteristics

Q&P: 1, 3, 6, 9, 14, 16, 19


Chapter 2: Financial Instruments, Margin and Short Sell Constraints

Q&P: 2, 3, 7, 9, 12, 15, 22, 24


Chapter 3: Overview of Security Types

Q&P: 1, 3, 5, 6, 7, 11, 13, 16, 20


Chapter 4: Mutual Funds and Other Investment Companies

Q&P: 2, 3, 5, 8, 10, 11, 12, 16, 19


Test 1 (Chapters 1-4)


Module 2

Chapter 11: Diversification and Risk Asset Allocation

Q&P: 3, 6, 7, 9, 10, 11, 12, 14


Chapter 12: Return, Risk, and the Security Market Line

Q&P: 1-9


Chapter 7: Stock Price Behavior and Market Efficiency

Q&P: 1-5


Chapter 5&6: Equity Valuation

Ch. 5 (Q&P: 1, 3-8); Ch. 6 (Q&P: 1, 3, 5, 6, 8, 10, 12)


Test 2 (Chapters: 5, 6, 7, 11, 12)


Module 3

Chapter 9&10: Interest Rates, Bond Prices and Yields

Ch. 9 (Q&P: 2, 4, 5, 7, 9); Ch.10 (Q&P: 1, 2, 5, 7, 9)


Chapter 14: Futures Contracts

Q&P: 1, 2, 3, 6, 8, 9


Chapter 16: Options Valuation

Q&P: 1, 4, 6, 9, 11

Final Exam

Comprehensive Problems

Monday, May 6, 10:15-12:15

*The instructor reserves the right to adjust the course schedule and takes into consideration of the class progress and unforeseen circumstances.

Academic Honesty:
Academic integrity is the foundation of the academic community. Because each student has the primary responsibility for being academically honest, students are advised to read and understand all sections of this policy relating to standards of conduct and academic life. Park University students and faculty members are encouraged to take advantage of the University resources available for learning about academic honesty ( or Park University 2011-2012 Undergraduate Catalog Page 95-96

Plagiarism involves the use of quotations without quotation marks, the use of quotations without indication of the source, the use of another's idea without acknowledging the source, the submission of a paper, laboratory report, project, or class assignment (any portion of such) prepared by another person, or incorrect paraphrasing. from Park University 2011-2012 Undergraduate Catalog Page 95

Attendance Policy:
Instructors are required to maintain attendance records and to report absences via the online attendance reporting system.

  1. The instructor may excuse absences for valid reasons, but missed work must be made up within the semester/term of enrollment.
  2. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  3. In the event of two consecutive weeks of unexcused absences in a semester/term of enrollment, the student will be administratively withdrawn, resulting in a grade of "F".
  4. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  5. Students receiving Military Tuition Assistance or Veterans Administration educational benefits must not exceed three unexcused absences in the semester/term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student.
  6. Report of a "F" grade (attendance or academic) resulting from excessive absence for those students who are receiving financial assistance from agencies not mentioned in item 5 above will be reported to the appropriate agency.

Park University 2011-2012 Undergraduate Catalog Page 98

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: .

Additional Information:



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Last Updated:12/30/2012 12:56:03 AM