2015-1 Tuesday/Thursday 12:30/2:20 WMC3260
Instructor: Derek Yee Office: WMC 4369
Phone: 876-5337 (only for emergency) Office hours: following lecture
Email: course related emails use CANVAS Week
Topics
chpt
Practice Questions
Ungraded
1
Jan 6/8
Investment environment
Markets and instruments
1
2
2-2, 2-6, 2-7, 2-11, 2-13
2
Jan 13/15
Trading on securities
3
3-2, 3-17, 3-23
3
Jan 20/22
Bond Prices and Yields
Term Structure of Interest rates
12
13
12-6, 12-13, 12-33
13-24, 13-15,13-29(a)
4
Jan 27/29
Managing Bond Portfolios
In class quiz (week 1-3 inclusive)
14
14-4, 14-24, 14-14, 14-18
5
Feb 3/5
Security analysis
16
16-8, 16-26, 16-16, 16-31
Reading Week
6
Feb 17/19
Return & risk
Risk aversions & Capital Allocation
4
5
4-17, 4-18, 4-19, 4-20
5-1a&b, 5-7, 5-8
7
Feb 24/26
Optimal Risky Portfolios
Midterm (weeks 1-6 inclusive)
6
6-4, 6-5, 6-6, 6-7,
6-8, 6-9 6-10, 6-11
8
March 3/5
Capital asset pricing model
7
7-1, 7-4, 7-10,
7-11, 7-19, 7-21, 7-22
9
March 10/12
Index models & APT
Project due
8
8-1, 8-20, 8-23, 8-30
10
March 17/19
Market efficiency
Empirical Evidence Returns
9
11
9-3, 9-5, 9-25, 9-9
11
March 24/26
Active Management & Performance
In class quiz (week 7-10 inclusive)
21
21-8, 21-9, 21-33
21-34, 21-38, 21-15
12
March 31/Apr 2
Buffer
April 18
Final Exam
A. Grading
Activity
Option
A
Option
B
In Class Quiz
10 %
10 %
Individual Project
5
5
Mid-term
35
20
Final examination
50
65
Total
100 %
100 %
B. SFU Policy
Faculty of Business Administration’s policy that these grading norms be applied to the final grade
Grade
A
B
C
D,F,N
% of students to receive grade
22%
44%
28%
6%
If a student’s grade on the final examination is lower than 2 standard deviations below the median, the instructor reserves the right to award an overall grade of F. For example if the median grade on the final exam was 65% and the standard deviation on the exam was 12, then any student who received a grade lower than 41% could receive a F as the letter grade for the overall course.
Students are expected to adhere to SFU’s policies on ethical behaviour
C. Lecture
“Investments” 8th Can ed; Bodie, Kane, Marcus, Perrakis, and Ryan
ISBN 978-0-07-133887-5
7th Canadian ed is adequate but you will have to map, chapters & questions to the new edition Students are responsible for: all material presented in the lecture and lecture notes all the assigned Chapters from the textbook supplemental readings placed on course website
D. Practice questions
The purpose of the practice questions is to encourage students to individually attempt to answer questions. The more questions you attempt, the more likely you will be able to master the concepts introduced in the course.
Solutions to the assignments will be reviewed during the lecture
E. QUIZ
Two (2) in class quizzes will be scheduled over the thirteen weeks of the course. Each quiz will last a maximum of 60 minutes. The questions will be approximately of the same level of difficulty as the assignments.
F. Individual Project
Using an excel spreadsheet that has been provided, each student will determine the efficient frontier and