FIN 627 Investment Management

Course Catalog Description


This is an introductory course to the theory and practice of investment management. It covers the building blocks and fundamental theoretical and practical aspects of managing investments as well as applications that put the former to use by practitioners in the industry. Students will be exposed to some of the information, tools and analysis available to investment management professionals today, and will have the opportunity to work with thematic portfolios of equities.

Prerequisites: FIN 623

Campus Fall Spring Summer
On Campus X X
Web Campus X X


Professor Email Office
Emmanuel D. Hatzakis

More Information

Course Outcomes

By the end of this course, the students will be able to:

  1. Create the discipline and analytical processes that underscore the objective of building investor wealth.
  2. Comprehend how both fundamental securities analysis and market behavior impact the short- and long-term value of securities
  3. Achieve a critical understanding of the most widely used theories and practices in in investment analysis and management today
  4. Construct and manage equity portfolios based on selected objectives and styles

Course Resources


  • Investments, by Bodie, Kane and Marcus, 11th Edition, McGraw-Hill, ISBN: 978-1-259- 27717-7. Available at the Stevens Bookstore and other booksellers - BKM
  • Required Reading: Goldman Sachs – Portfolio Strategy Research: Anatomy of our US Portfolio Strategy Thematic and Sector Baskets, 05-Feb-2020. Available for personal use on Canvas – GS 1


Grading Policies

1 Homeworks and Quizzes 20%
2 Class attendance 10%
3 Class participation 10%
4 Final Exam 35%
5 Final Group Project 25%

Lecture Outline

Topic Readings Assignments
Week 1 Investment Environment, Asset Classes and Financial Instruments, How Securities are Traded, Macroeconomic and Industry Analysis—review Equity Valuation Models and Financial Statement Analysis (covered in 623) Introduction to Equity Baskets – Group Project BKM Ch. 1,2, 3, 17, 18, 19 GS 1 Read on your own 1,2,3,17
Week 2 Mutual Funds and Other Investment Companies, Risk, Return, and the Historical Record BKM Ch. 4,5 Homework
Week 3 Capital Allocation between Risky Assets and the Risk-Free Asset, Optimal Risky Portfolios BKM Ch. 6, 7 Homework
Week 4 Index Models BKM Ch. 8 Homework
Week 5 The Capital Asset Pricing Model BKM Ch 9 Homework
Week 6 Arbitrage Pricing Theory and Multifactor Models of Risk and Return, The Efficient Market Hypothesis BKM Ch. 10, 11 Homework
Week 7 Behavioral Finance and Technical Analysis, Empirical Evidence on Security Returns BKM Ch. 12, 13 Homework
Week 8 Fixed Income Investing: Bond prices and yields, Term Structure of Interest Rates, Managing Bond Portfolios BKM Ch. 14, 15, 16 Homework
Week 9 Options Markets and Valuation BKM Ch 20, 21 Homework
Week 10 Futures, Swaps and Risk Management BKM Ch. 22, 23 Homework
Week 11 Portfolio Performance Evaluation, International Diversification BKM Ch. 24, 25 Homework
Week 12 Hedge Funds, Active Portfolio Management, Investment Policy and the CFA Institute Framework BKM Ch. 26, 27, 28 Final Project Due
Week 13 Project Presentation
Week 14 Final Exam