FIN 627 Investment Management
Course Catalog Description
Introduction
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 |
Instructors
| Professor | Office | |
|---|---|---|
|
Emmanuel D. Hatzakis
|
ehatzaki@stevens.edu |
More Information
Course Outcomes
By the end of this course, the students will be able to:
- Create the discipline and analytical processes that underscore the objective of building investor wealth.
- Comprehend how both fundamental securities analysis and market behavior impact the short- and long-term value of securities
- Achieve a critical understanding of the most widely used theories and practices in in investment analysis and management today
- Construct and manage equity portfolios based on selected objectives and styles
Course Resources
Textbook
- 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
Grading Policies
| Weights | ||
| 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 |