SUMMER 2000
SYLLABUS
T,TH 5:30-7:50 PM
ROOM 138 B
Instructor: J. Andrew Hansz, Ph.D.
Office: 619 Business Building
Office Hours: To be announced and by appointment.
Phone: (817) 272-5843
Email: hansz@exchange.uta.edu
Course Description:
Application of principles and techniques of investment management in solving investment problems of individuals and financial institutions. Considers apportionment of investment funds among alternatives, analysis of risk, valuation timing of security acquisitions. This course focuses on investment analysis and valuation of financial instruments, portfolio theory and management, and efficient market theory.
Prerequisites:
- FINA 5311, Business Financial Management. See graduate bulletin.
Course Format:
- Lectures and discussion
- Examinations: Two midterm exams and a comprehensive final exam.
- Unannounced quizzes
- Attendance and participation is encouraged. Attendance will be taken.
Required Textbooks:
- Investments, 4th Edition, Bodie, Kane, and Marcus, Irwin: 1999.
- Wall Street Journal is recommended.
Calculators and Spreadsheet:
A financial calculator (HP 10-B or equivalent) and a spreadsheet (Excel or equivalent) are required. The calculator must be able to calculate Internal Rate of Return (IRR) and Net Present Value (NPV). This means that the calculator must be able to deal with entry of uneven cash flows. Check the manual before you buy a calculator. You are responsible for learning the keystrokes and the intricacies of your personal calculator. You may NOT store mathematical formulas and/or text for use on exams (see ‘academic honesty’ section). It is also assumed that you have access to a spreadsheet and basic spreadsheet skills.
Grading:
| Percent | |
| Exam I | 25% |
| Exam II | 30% |
| Final Exam | 35% |
| Quizzes/Homework/Attendance | 10% |
| Total | 100% |
Generally, the grading scale used by the Instructor can be:
| 90 – 100% | A |
| 80 – 89% | B |
| 70 – 79% | C |
| 60 – 69% | D |
| Below 60% | F |
The instructor can apply a “curve” which could lower these ranges.
Make-up Examination Policy:
Due to the fast pace of the summer session, the exam make-up exam policy will be strictly enforced. A make-up exam will be given if the student has a reasonable, verifiable excuse. However, the make-up exam request must be made prior to the regularly scheduled exam. Students should not expect to take more than one make-up exam. The make-up exam must be completed before the end of the week in which the original exam was scheduled. The instructor reserves the rights to change the style, format, and content of a make-up examination . Once a student has taken an exam, a make-up exam cannot be given.
Unannounced quizzes, based on the problems at the end of each chapter, will be given randomly during the semester. No make-up quizzes will be given. The purpose of the quizzes is to encourage both attempting the problems at the end of the chapter and attendance.
Policy on Attendance:
Students are expected to attend each class and students are expected to come to each classwiththeir assignments completed.Students who must miss a class are responsible for obtaining all assignments, lecture notes, handouts, and announcements discussed in class from a classmate. You should get to know at least one student in class and the instructor will introduce you to at least one person at the first class session.
Policy on Handing in Assignments Late:
Homework assignments will be made during the semester. A penalty per class period will be assessed for all assignments turned in late. Absence from class is not a valid excuse for handing in homework assignments late.
Policy on Disruptive Classroom Behavior:
This course will be conducted in a professional manner. Unprofessional behavior of any form in the classroom will not be tolerated. Students can be withdrawn at the discretion of the instructor for unacceptable behavior. Additionally, a portion of the final grade is attributed to class attitude/contribution. This grade, made at the instructor discretion, is based on attendance and attitude during class.
Academic Honesty:
It is the philosophy of The University of Texas at Arlington that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form. All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures. Discipline may include suspension form the University. You are responsible to maintain the standards of Academic Honesty included in the current UTA catalog.
Bomb Threats:
Effective April 8, 1996, the College of business Administration has adopted a policy to deal with the classroom disruption caused by bomb threats in the building. (A) Section 22.07 of the Texas Criminal Law Statutes states that a Class A misdemeanor is punishable by (1) a fine not to exceed $4,000, (2) a jail term of not more than one year, OR (3) both such a fine and confinement. (B) If anyone is tempted to call in a bomb threat, be aware that UTA has the technology to trace phone calls. (C) Every effort will be made to avoid cancellation of presentation/tests caused by bomb threats to the Business Building. Unannounced alternate sites will be available for these classes. If a student who has a class with a scheduled test or presentation arrives and the building has been closed due to a bomb threat, the student should immediately check for the alternate site notice which will be posted on/near the main doors on the south side of the Business Building. If the bomb threat is received while class is in session, your instructor will ask you to leave the building and reconvene at another location. (D) Students who provide information leading to the successful prosecution of anyone making a bomb threat will receive one semester’s free parking in the Maverick Garage across from the Business Building. UTA’s Crime stoppers will provide a reward to anyone providing information leading to an arrest. To make an anonymous report, call 817-272-5245.
Withdrawing:
It is the student’s responsibility to complete the course or withdraw form the course in accordance with University regulations. Students are strongly encouraged to verify their grade status before dropping a course after the first withdrawal date. A student who drops a course after the first withdrawal date may receive a “P” in the course if the student is failing at the time the course is dropped.
Drop for Non-payment:
It is the policy of the University of Texas at Arlington that students who have not paid by the census date and are dropped for non-payment cannot, under any circumstances, receive a grade for the course. Therefore, a student dropped for non-payment whom continues to attend the course will not receive a grade for that course. Emergency loans are available to help students pay tuition and fees. Students can apply for emergency loans by going to the Emergency Tuition Loan Distribution Center at E.H. Hereford University Center (near the southwest entrance.).
Student Evaluation of Teaching:
The following appears in Administrative Memorandum No. 98-5 dated August 21, 1997, from the President for academic and administrative offices. “ Beginning in Fall 1997, teaching evaluations will be conducted in every class every semester for every instructor of record”.
Food/Drink in Classrooms:
College policy prohibits food and/or drink in classrooms and labs. Anyone bringing food and/or drink into a classroom or lab will be required to remove such items, as directed by the class instructor or lab instructor.
Important Dates:
| Classes Begin | May 30 |
| Late Registration | May 30-31 |
| Census Date | June 5 |
| Last Day to Drop with “W” if failing | June 26 (undergraduates only) |
| Fourth of July Holiday | July 4 |
| Mid Semester (graduate drop policy applies) | July 6 |
| Last date for undergrads to drop/withdraw | July 25 (undergraduates only) |
| Last Day of Classes | July 27 |
| Final Exam Dates | July 27 |
Tentative Topic Schedule:
This is a tentative schedule. Adjustments will be necessary during the progression of the semester. It is the student’s responsibility to be aware of any and all changes announced in-class.
| Topics | Chapters |
| Introduction to Investments and Financial Markets | 1, 2, 3, 4, A* |
| Portfolio Theory | 6, 7, 8 |
| Equilibrium in Capital Markets | 9, 10, 12, 13 |
| Fixed-Income Securities | 14, 15, 16 |
| Security Analysis | 18, Handouts |
| Options, Futures, and Other Derivatives | 20, (21, 22) |
| Applied Portfolio Management | 24 |
| ( ) pending on time constraints *Appendix A: Quantitative Review is highly recommended |
Examination Dates:
- Exam I: June 15, 2000
- Exam II: July 6, 2000
- Final Exam: July 27, 2000