BABSON COLLEGE

FIN 4530

Spring 2008

INVESTMENTS

  1. Word Version of Syllabus and Course Schedule

  2. Course Schedule

  3. Course Description

  4. Required Texts

  5. Highly RECOMMENDED Reading 

  6. Prerequisites  

  7. Course Work and Grades

Course Description
 

This course is designed for students interested in investment or portfolio management. Students explore the simultaneous management of multiple securities, using statistical and other mathematical tools. Topics covered include: risk and return, allocation of risky assets, setting portfolio objectives and strategy, portfolio optimization, risk crafting, and portfolio performance evaluation. Through investment tools, projects, and readings, students will explore investment and portfolio theory and practice. Prerequisites: IME2 or MCE and any 3000 level Finance course.

 

Required Texts

Essentials of Investments (7th Edition), by Zvi Bodie, Alex Kane, and Alan Marcus, McGraw-Hill/Irwin, copyright 2008.  (Earlier editions are probably also OK, but I will be using this one.)

 

The Wall Street Journal    Required reading EVERY DAY.  (I am not kidding about this!)

 

You are expected to keep up with the readings at ALL times! 

 

 


 

HIGHLY RECOMMENDED Reading

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition (Paperback), by Burton G. Malkiel, W. W. Norton; 9 edition (December 24, 2007).

 

This is like the BIBLE of Wall Street.  You will be asked if you read it on interviews!!!!

 



Prerequisites

All of the normal Finance Department Prerequisites apply.  See your Class Dean for more details.

 

 

Course Work and Grades

 

Finance is not an easy subject, and this is not an easy class.  You will need to think, study, practice the problems at the end of the chapters, and be prepared for class to do well in this course.  On the other hand, if you are willing to put in some time and effort, you should find the class quite rewarding.

 

There will be a midterm and two projects, and probably a number of small assignments.  The projects may be submitted to Turnitin or something equivalent.  In addition, there will also be homework for you to do on your own.  Thus, no one score will determine your overall grade in the class.  All class members are expected to participate actively in the class.

 

The initial calculation for the course grade will use the weights below, although outstanding good (or bad) class participation may, at my option, be recognized by an increase (decrease) of a half grade or more, at my sole discretion.  I also retain the complete right to change these weights at any time, or add a final if it seems necessary:

 

            Assignments, Participation, Initiative, Professionalism, and Improvement (A-PIPI)             20%

Project 1                  (Investment Portfolio)                                                                    20%

Project 2                  (Value Security)                                                                             20%

Midterm                                                                                                                       40%

 

All work and exams are cumulative.  If an emergency or illness should force you to miss an examination or assignment/homework deadline, you must contact me before the test is given or the assignment is due.

 

Any student who is entitled to an academic accommodation based on the impact of a documented disAbility should contact me privately during office hours to discuss his or her specific needs.  Please also contact the coordinator of disAbility services, at 781-239-4075 or in Hollister Hall to coordinate reasonable accommodations.

 

 

NOTE:  Dr. Goldstein reserves the right to change any aspect at any time, including, but not limited to, assignments, grading methods or relative grading weights, assignment or exam dates, or the course schedule.