SYLLABUS INVESTMENTS-SPRING 2015...1 SYLLABUS INVESTMENTS-SPRING 2015 . Welcome to Spring Semester...

Investments –Online (2015) 20-‐Jan – 17-‐May

Dr. G. D’Anne Weise

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SYLLABUS INVESTMENTS-SPRING 2015

Welcome to Spring Semester 2015! Faculty Online classes have often been criticized for the lack of face-to-face communication and human connection. However, today’s technology allows us to keep in close contact while learning at a distance. I look forward to getting to know you and you getting to know me!

Finance 3520, Investments, is my favorite topic because the material addresses a necessity, even if not an interest, for everyone. You may be thinking “… investments are not a necessity for me because I have no money…” nothing could be further from the truth. The key to successful investing is time; young people have a distinct advantage over the old by this measure.

This semester is structured to allow you the opportunity to construct a portfolio and to learn how to trade stock through a broker. To this end, you will open a brokerage account at StockTraks, an educational online broker, and conduct trading for your . portfolios Instructor Bio

One of the most difficult questions for me to answer is: “Where are you from?” I never know what to say! I was born in Las Vegas, NV, but moved to Barstow, CA at age 3 and then to Scottsdale, AZ at 4. At age 7 my family moved to London, England where we lived until I was age 15. While in London, we took advantage of my father’s generous employer (Standard Oil of California) and travelled the world: Egypt, Israel, India, Eastern and Western Europe etc.… After 8 years and 64 countries my family moved to San Francisco, CA, followed by a move to a small southern town in Alabama. After moving away from home I lived in Seattle, WA, Fort Collins, CO, Tuscaloosa, AL, Innsbruck, Austria and New Orleans, LA.

At Colorado State University I completed a BS in Business degree (1981) and an MBA degree with an emphasis in Finance, 1984. I then transferred to the University of New Orleans and entered an exchange program at the University of Innsbruck, Austria. Subsequently, I completed a MS in Quantitative Economics, 1985, and a Ph.D. in Finance, 1987. I was the third woman globally to earn a Ph.D. in Finance.

My research interests have varied over the years but remains primarily focused on the pricing and use of derivative securities. You can view a sample of my research by clicking the Faculty Information tab located on the left-hand side of our class screen.

Age: 55 yrs. UMSL: 27 yrs. Two adult children ages 19 and 25. Three cats: Jupiter, Constellation and Cosmic

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Professor: G. D’Anne Weise Four Ways To Contact Me:

1. E-Mail: [email protected] 2. Cell Phone: 314-607-5949 3. Text Message: 314-607-5949 4. BlackBoard Instant Messaging



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I. COURSE REQUIREMENTS A. Required

1. Read daily with focus on the Credit Markets, Heard on Wall Street Journal (WSJ). the Street, Stock Reports, and Company Reports sections. This daily exercise will provide a depth of information of analyzing your securities. Click the link to sign up for student rates ($1/wk for 15 weeks): wsj.com/Spring15.

2. is located in the ‘Syllabus Folder’ àSyllabus Contract: Exercise #1. Answer all questions then submit. A 100% is required in order to remain in this class. You are allowed multiple attempts and are encouraged to ask questions to clarify points of confusion.

3. Financial Management (FIN3500) and an overall GPA of 2.0 or better. Prerequisites:

4. When this course is offered on campus, students are in class 2.5 Time Requirements: hours/week, along with the travel time involved and homework. The online version is no different in terms of expectations for your time and involvement. This is an active online course that requires up to 9-10 hours a week, on activities related to this course.

5. As a student in an online course, you are expected to have Technology Requirements: access to the Internet every day. If you have computing problems, it is your responsibility to address these, or come to campus to use the student computing labs. Problems with your computer or other technology issues are not accepted as an excuse for any delays in meeting expectations and deadlines for the course. The minimum technology requirements for the class are listed in item #2 in the Syllabus Folder on mygateway.

6. E-Mail Requirements: There are two non-negotiable e-mail requirements: (i) In the subject line include the following information: Be Specific. FIN3520-

In place of ‘Assignment Name’ identify the exercise, Assignment Name-Problems #X-#Y.report or lecture name to which you will be referring. In place of the ‘X’ and ‘Y’ put the number of the question for which you are having problems if relevant. Students who do not provide the necessary information will receive the following e-mail response: "See the Syllabus, page 2, and/or go to item #11 of the Syllabus Folder, for the required identifying information. Re-send your e-mail after changing the subject line." There is no agreed upon time frame for a response when a student’s name, course number or Assignment information is not identified as required,

(ii) . If you desire a response to your e-mail, you write in either a Be Polite MUSTfriendly tone or a professional tone. I will respond in-kind within 24 hours. A response to your e-mail will normally be sent within 24hrs of receipt except when a student writes in a tone that the professor interprets as rude or disrespectful. In such a case, the student will receive the following reply: "Go to the Syllabus Folder, read the Nettiquite statement and read the ‘E-mail Communication’ (item #11 in the Syllabus Folder). Please re-word your e-mail using polite, respectful and diplomatic language, then re-send." A



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persistently disrespectful student will be sent the following message: “This is the 3rd (or whatever) e-mail I have received that is rude/disrespectful/undiplomatic. Consistent with our Contract, I ask that you drop the class. I have sent your e-mails to the Chairman and the Dean along with a request for you to be allowed to drop with an excused grade. This is our final communication. Any other questions should be directed to the Chairman of the Department of Finance.”

7. StockTraks Registration: Trading is a large part of what we will do this semester. StockTrak is an educational, real-time trading platform that allows students to trade stocks, ETFs and bonds. Register on 31-Jan and have fun exploring the platform. The link to StockTraks is in the Syllabus Folder, item #9. Your cost for the simulation is , payable to StockTraks $26.95online with a credit card.

8. Meeting An in-person meeting may be scheduled only after all Requirements: remote communication possibilities have been exhausted. The remote communication possibilities at your disposal are: e-mail, Instant Messaging (IM), text, phone and Skype. If all these fail to resolve the issue and if I feel that I can still help you, then we will schedule an in-person meeting.

9. Other Requirements→ Active use of UMSL e-mail → Solid background in basic quantitative skills including algebra and statistics → Compliance with Netiquette statement (Syllabus Folder)

B. Recommended Introductory Investments texts cover the same basic material. Given the high cost of textbooks, you are not required to purchase a specific book or any book to do well in this course. Consider the following in making your text decision: All Learning Competencies are covered by lecture topics and related problem assignments. If you decide you need a textbook, go online to (or any other discount textbook web site) and find an www.chegg.com inexpensive Investments text. Topics that are confusing to you can be found in the textbook index.



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II. LEARNING GOALS, OBJECTIVES AND PHILOSOPHY Course Description: FINANCE 3520 Investments. Prerequisites: FINANCE 3500 and a 2.0 campus GPA. The Financial analysis of exchange and OTC traded debt and equity instruments. Techniques of such analysis are presented in context with economic and management circumstances within the company, industry, and economy. This course requires each student to independently engage in trading stocks and bonds in order to develop his or her analytic and interpretive skills. The course will cover how to: (i) select stocks and bonds, (ii) determine the amount to invest in each security, (iii) calculate and interpret measures of risk and return and (iv) measure and interpret systematic and unsystematic risk.

A. Learning Goals In Financial Management (FIN 3500) and Financial Accounting (ACCT 2400, 3401 or 3402) classes, students study ratio analysis, stock valuation, bond valuation and portfolio theory. In Investments, the financial analysis tools previously studied are expanded and applied in a practical framework. Over the last two decades, the field of finance has become increasingly technical and specialized. Employers recruiting for financial positions not only require candidates to have an undergraduate or graduate degree in finance, but they also want new employees to exhibit skills and experience beyond those typically found in a traditional academic environment. As a result, professional licensing or certification has become one of the most widely recognized means of demonstrating core competency. This course is designed to prepare you for a portion of the Investments segment of the Chartered Financial Analyst (CFA) exams (www.cfainstitute.org). This course alone is not sufficient preparation for the exam.

B. Learning Competencies

UNIT 1: At the end of Unit 1, students should be able to identify the basic criteria used for selecting stocks and bonds. Students will apply both Technical Analysis and Fundamental Analysis to the selection of stocks. UNIT 2: At the end of Unit 2, students should be able to determine the impact of borrowing on the stock position. This includes determining margin call prices and deposit amounts. In addition, students should be able to distinguish between a risky position, a riskier position and a risk-free position. UNIT 3: At the end of Unit 3, students should be able to calculate and interpret the risk and return on individual stocks and bonds. UNIT 4: At the end of Unit 4, students should be able to calculate and interpret the risk and return on a portfolio. Portfolio risk is evaluated in the context of unsystematic, unsystematic and total volatility.



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C. Teaching Philosophy One of the main reasons I decided to pursue a career in academia was to have the opportunity to work with future generations of investment research analysts and educators. I view teaching as central to all of my scholarly activities and it is my hope that my students will join me in learning the value of questioning what may appear obvious. My objectives as a university professor are as follows:

(a) to foster critical thinking skills; (b) to facilitate the acquisition of lifelong learning skills; (c) to help students develop analytical portfolio management skills; and (d) to prepare students to function as competent research analysts.

My overall teaching philosophy is based on two principles:

(a) active student learning strongly influences students’ ability to address the Learning Competencies; and

(b) student learning is strongly influenced by the assessment procedures employed. To this end, the StockTraks portfolios are assigned as a way for students to practice each new skill set in a real-world setting.

III. CLASS POLICIES

1. PARTICIPATION: is REQUIRED in order to pass the course and is measured in two ways: (i) class Discussion Forums, and, (ii) graded video responses to lecture questions. Your success in this course will heavily depend on your ability to communicate, engage and participate in all course activities. Successful completion of this course requires that a student keep up with all assignments, coursework and discussions. Timely participation in online discussions is a very important part of this course and participation in these discussions, and other activities as assigned, is not optional. You are expected to prepare and post to discussions in a timely manner consistent with the requirements contained within the course syllabus and discussion rubric. The requirements set forth in the Syllabus Folder meet the accreditation requirements for student engagement in online courses. Failure to engage or participate with the class will be counted as a zero.

2. Students are responsible for all material covered in the pre-requisite PRE-REQUISITES:classes.

3. LATE WORK POLICY: Given the structure and flexibility of the due dates, late work is NOT accepted for any reason. Instead, students are encouraged to schedule due dates early in the month. If for any reason something unexpected occurs, you will then have provided yourself with enough of a time cushion to manage your assignments. Each semester students encounter technical problems resulting in the loss of their work. Be sure to back up all your work since technology issues are not an acceptable reason for late submissions. Students are not rewarded for poor planning by providing extra time.



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4. is EXTRA CREDIT: offered to individual students but may be offered to the class NEVER

as a whole. Offering extra credit opportunities to one student while excluding other students, creates an atmosphere of inequality and discriminates against students who do not request such opportunities. Any student requesting individual extra credit or extra consideration of any kind, by any definition, will receive a denial of the request.

5. (as opposed to 99%) implies in-person meetings are strongly A 100% ONLINE CLASS: discouraged in favor of remote communication. Normal communication can be handled through . However, students with time-sensitive requests should e-mailuse or for a more expedient reply. texting BlackBoard’s Instant Messaging Alternatively, if you need to talk, have complex problems to solve or difficult to write questions, then it is best to use the to speak with me directly. Finally, phoneif you feel you need face time, then we can use If all remote Skype.communication methods fail, then, , an in-person meeting will be and only thenconsidered.

6. ACADEMIC INTEGRITY: You are responsible for knowing and applying the University’s policies concerning student conduct as stated in the University Code of Conduct. Copy the link below into your browser and read the policies.

http://www.umsl.edu/~studentplanner/Policies%20and%20Procedures/conductcode.html

7. The Unit Discussion Forums are schedule for the first day of the Set Due Dates:assigned month, however, all other assignments are due at the end of each month. Keep in mind: (i) Although the due dates are at the end of each Unit, the work needs to be

spread throughout each month in order complete the assignments on time. (ii) Submit your work for grading as soon as it is completed. (iii) End of Unit final due dates provide each student with the flexibility to turn in

assignments according to their own schedule. This flexibility will only work if students make a schedule and stick to it. To this end, a Suggested Schedule has been posted in the Syllabus Folder. You are encouraged to modify the suggested completion dates to meet your needs.

(iv) Once your work has been submitted for credit it is final. You may not resubmit your work with corrections at a later date, even if it is before the final due date.



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IV. GRADE MANAGEMENT

A. Grade Scale

B. My Gateway Grade Book All points earned in the course will be posted to the My Gateway Grade Book. Students are

encouraged to check the grade book to confirm that points earned are properly posted. In order to facilitate proper postings, students are required to: i) put your name on each page of your submission; ii) put the name of the assignment on the first page; and, iii) put the course # on the first page (FIN3520). A 10% penalty will be applied to submission missing the required identifiers.

C. Grading Feedback Timetable (subject to change) The professor’s ‘Needs Grading’ folder will be checked at least once per week, normally a Monday.

and graded Lectures will be graded within 3 days of the Monday check date. Exercises StockTraks will be graded within 5 days of the submission dates. Reports will be graded by the 3rd Discussions

of each Unit month. This timetable is an approximation that does not incorporate the number of papers to be graded. When there are few submissions, the turn around time will be shorter but when there are many the turn around time could be longer. Solutions to graded assignments will be posted on the 1st of each month, solutions to Practice Sets are available immediately. Solutions to graded assignments will be posted after all assignments have been received or on the 1st of each month, solutions to Practice Sets are available immediately. If a student’s name, course number or Assignment information is not identified as required, there is no agreed upon timetable for feedback to the student.

D. COBA Conflict Resolution Procedure In the event you have a problem with your grade or any other aspect of your class experience, you should follow the steps below in the order presented:

Step#1: . State, as specifically as possible, the nature of the Contact the Professorproblem and discuss a resolution. This normally solves 99% of any problems. However, if it does not, you can go to the next step. Step#2: State the nature of the Contact the Chairperson of the Finance Department.problem and provide information relating to why the conflict has not yet been resolved. If the Chairman is unable to help you, then go to the last step.

FINAL GRADES WILL BE ASSIGNED USING THE FOLLOWING SCALE

93.0000%-‐100.0000% (+)* A 77.0000%-‐79.9999% C+ 90.0000%-‐92.9999% A-‐ 73.0000%-‐76.9999% C 70.0000%-‐72.9999% C-‐ 87.0000%-‐89.9999% B 83.0000%-‐86.9999% B 67.0000%-‐69.9999% D+ 80.0000%-‐82.9999% B-‐ 63.0000%-‐66.9999% D 60.0000%-‐82.9999% D-‐ Below 60.0000% F



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Step#3: . State the nature of the problem and tell the Dean Contact the Dean of the COBAyou have met with the professor and the Chairman. Tell him why neither the professor nor Chairman has helped you solve the conflict.

Note: If you have read and understood the syllabus but you do not like many of the rules, guidelines, schedule or work load, contact me to make sure your concerns are well founded. After discussing your concerns if you are still dissatisfied, it is best to drop the class now so that you can sign up for another class without losing time or money.

V. GRADE COMPOSITION (840 TOTAL POINTS)

A. LECTURES (25.5%) This course uses Voicethread, an online voice/video discussion tool for lectures and interactions. To create your Voicethread account (or link your current account to this course), click the link on the left in the Course Menu. This connection will be remembered on your computer, but if you use a different computer, you may need to re-click the link. If you are not able to view or access Voicethreads, update your Flash plugin at the following link: http://get.adobe.com/flashplayer. To listen to a lecture simply click the appropriate link provided in each Unit. The lecture will begin automatically without further action. Lecture questions are embedded in each presentation and take one of three forms: 1. Lecture question problem sets. 2. Practice Questions, 3. Video Response required questions and There are 11 lectures this semester color-coded green on mygateway. Each lecture contains embedded questions for you to answer and submit for credit. In addition, many of the lecture questions are for practice ( ) rather than credit to allow you the opportunity to reflect on the PQsmaterial before completing an exercise. The table below provides the lecture titles, due dates and point value of each lecture.

Lecture Titles, Points and Due Dates

Date

1. Lec#1: Introduction to Investments. 28-‐Feb

2. Lec#2: Capital Markets (Review from FIN 3500). 28-‐Feb

3. Lec#3: Selection Criteria. 28-‐Feb

4. Lec#4: Technical vs Fundamental Analysis. 28-‐Feb

5. Lec#5: Index Selection Analysis. 28-‐Feb

6. Lec#6: Risk and Riskier 31-‐Mar

7. Lec#7: Risk-‐Free Security Analysis. 31-‐Mar

8. Lec#8: Returns Analysis-‐Individual Securities. 30-‐Apr

9. Lec#9 Risk Analysis-‐Individual Securities. 30-‐Apr

10. Lec#10: Problems with Beta. 30-‐Apr

11. Lec#11: Portfolio Theory. 15-‐May

Any supplementary material should be submitted with the follow file name:



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1. Lecture Comprehension Sets (10%)

There are 4 lectures that have a set of questions presented in the ‘test’ tool format. Even so, they are not tests so you can feel free to work with other students and use lecture notes. The questions will first appear as a text comment embedded in the lecture. Those questions that are difficult to grade insight the VT, have been placed in the documents below.

Lecture Comprehension (10%) 85 1. Lec#2 Questions: Capital Markets 28-‐Feb 20

2. Lec#3 Questions: Selection Criteria 28-‐Feb 20

3. Lec#4 Questions: Technical vs Fundamental Analysis 28-‐Feb 20

4. Lec#7 Questions: Risk-‐Free Security Analysis 31-‐Mar 25

2. Practice Questions (PQ) (0%) There are , each with no point value. The practice questions are 7 Practice Questions (PQ)designed to provide you a risk-free way to consider the material. PQs have no point value and are not submitted to me. You will find the PQs in my text comments on the VT lecture along with the solution. It is best if you avoid looking at the solution until after you answer the question on your own. Upon completion you can use the solutions to ‘grade’ your work and level of understanding.

Practice Questions Date 0pts 1. PQ#1: Selection Justification 28-‐Feb 0 2. PQ#2: Market Index Analysis 28-‐Feb 0 3. PQ#3: Margin Analysis 28-‐Feb 0 4. PQ#4: Risk-‐Free Security Analysis 31-‐Mar 0 5. PQ#5: Return Analysis 31-‐Mar 0 6. PQ#6: Measuring Risk 30-‐Apr 0 7. PQ#7: Problems with Beta 30-‐Apr 0

3. Video Response Questions (15.5%)

To respond to a lecture question, click the ‘+’ button in the middle of the lecture screen. After you click the plus sign you will see: ‘ABC’ for text comments, a microphone icon for audio-only comments and a video recorder icon for an audio and visual responses. The lectures sometimes require you to submit a Video Response (VR) answer the questions. Your responses on to lectures, regardless VTof format, are visible to me as well as the rest of the class. Therefore, students who add value to the solutions earn higher scores than students who repeat the thoughts of other students.



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Video Response Lecture Questions (15.5%) 130pts 1. VR#1 and VR#2 in Lec#1: Introduction to Investments 28-‐Feb 10 2. VR#3 in Lec#2: Capital Markets 28-‐Feb 10 4. VR#4 in Lec#3: Selection Criteria. 28-‐Feb 10 7. VR#5 in Lec#4: Technical vs Fundamental Analysis. 28-‐Feb 10 9. VR#6 in Lec#5: Index Selection Analysis. 28-‐Feb 10 5. VR#7 in Lec#7: Risk-‐Free Security Analysis. 31-‐Mar 10 3. VR#8 in Lec#8:Returns Analysis-‐Individual Securities. 30-‐Apr 10 6. VR#9 and VR#10 in Lec#9 Risk Analysis-‐Individual Securities. 30-‐Apr 15 8. VR#11-‐VR#13 in Lec#10: Problems with Beta. 30-‐Apr 30 9. VR#14 in Lec#11: Portfolio Theory 15-‐May 15

B. DISCUSSIONS (16.5%) There are 5 graded Discussion Forums, color coded purple, and 1 ungraded Forum titled “Students

” The “ ” discussion board is not monitored and it is not graded. Students are Only. Students Onlyencouraged to use the student forum to discuss lectures, exercises and StockTraks assignments.

Graded Discussions (16.5%) Date 140pts Students Only Forum NA 0 1. D#1-‐Truth or Lie? 5:30pm until 6:45pm 23-‐Jan 10 2. D#2: What is the best and the Worst…? 5:30pm until 6:45pm 25-‐Jan 10 3. D#3: Market Efficiency 5:30pm until 6:45pm 1-‐Mar 40 4. D#4: Let's Play Devil's Advocate! 5:30pm until 6:45pm 1-‐Apr 40 5. D#5: Psychology and Investing. 5:30pm until 6:45pm 1-‐May 40

The effectiveness of Discussion assignments relies on students interacting with one another to

foster learning. Learning need not be painful; it can, in fact, be fun! The Discussion topics relate to various issues in the derivative markets. The topics are intentionally not directly related to the course material and are somewhat controversial. Your grade depends on the number of posts and the quality of those posts. Specifically,

(i) Postings should be a minimum of one sentence and a maximum of one paragraph. (ii) Responses should be well written with proper punctuation, spelling and grammar. (iii) Credit will not be assigned to students who use one-word answers. (iv) Participate fully by keeping the discussion alive i.e. ask questions, challenge other

students bring up tangential issues etc.… (v) Encourage further discussion by building on current threads. (vi) Provide real-time dialog by being present during the scheduled 5:50pm-6:15pm time

periods. (vii) Use proper “Netiquette.”

In order to foster real-time dialog, all of the Discussion Forums are scheduled from 5:30pm- 6:45pm on the indicated dates. Some of you are very likely to have problems with this time frame given the structure of this course. As soon as you become aware that you have a time conflict with



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a scheduled Discussion, go to the Discussion Forum. State the name of the Students OnlyDiscussion you need to reschedule and post other times that work better for you. Other students who have conflicts will do likewise and you can arrange a different time or day. Note: It is the student’s responsibility to arrange more convenient discussion times not the professor’s. Failure to take appropriate steps will result in a zero grade for the discussion.

C. EXERCISES (36%) There are 8 graded exercise assignments spread throughout the semester; each with a

different point value and color-coded blue. The exercises have been constructed using Black Board’s ‘Test’ assessment. The ‘Test’ tool is used only as a delivery/submission/grading medium not because the exercises are quizzes or exams. You are allowed to use any resources at your disposal to answer the questions. When you are ready to complete the exercise, click the link and click the Begin button. All supplemental Excel files, where required, must be named (fill in the appropriate number for X):

<EX#X(FIN3520).FirstnameLastname.xlsx> Graded Exercises (36%) Date 302pts

1. EX#1: Syllabus Contract 22-‐Jan 10

2. EX#2: Wall Street Video Quiz 31-‐Jan 20

3. EX#3: Market Index Analysis 28-‐Feb 40

4. EX#4: Margined Trades 31-‐Mar 40

5. EX#5: Decimal Test 1-‐Apr 20

6. EX#6: Measuring Returns on Stocks/Bonds 30-‐Apr 55

7. EX#7: Measuring Risk on Single Securities 30-‐Apr 60

8. EX#8: Portfolio Risk 15-‐May 55

D. STOCKTRAKS (22%) Full Disclosure: This is the first semester that has been used in any of my classes. StockTraksTherefore, my insight into the applicability is limited. After exploring the site for a while, it looks like it will be fun. But if you have problems let me know and be patient as I find a solution! I hope you enjoy the experience!!

There are The StockTraks reports are intended 3 StockTraks Reports due this semester.to provide students with a protected environment to: learn how to trade in a ‘real-world’ setting and apply the lessons of the given Unit. The student’s environment has been constructed so that students do NOT suffer the consequences of bad choices; after all this is a learning experience not a contest. Students are: (i) provided with a hypothetical $100,000 that removes the consequence of losing real money when bad choices are made; (ii) not penalized for losing money and/or constructing inferior portfolios as long as the mistakes are addressed in the report. In other words, a student who made all the wrong choices can still earn an A by following both the guidelines and the spirit of the reports.



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Stock Traks Reports (22%) Date 185pts 1. StockTraks#1: Practicing Selection 28-‐Feb 55

2. StockTraks#2: Risky and Risk-‐Free Security Analysis 31-‐Mar 65

3. StockTraks#3: Portfolio Analysis 15-‐May 65

Create an account at StockTraks, an educational trading platform and online brokerage firm, by clicking the link here or in the Syllabus Folder, and following the instructions. If you are asked for our class code, type in: UMSL-Fin3520-SP15. You will be asked for $26.95 payable to StockTrak with a credit card. The StockTraks package provides you with $100,000 to invest in stocks, bonds and ETFs this semester, using StockTraks. You are required to trade a variety of stocks, bonds and ETFs this semester. Your grade is not based on whether you have selected a winning portfolio but on how well you apply the class lessons to your trading activity. Success is when a student who picked a lousy portfolio at the beginning of the semester can articulate the errors made by the end of the semester. Managing this portfolio will allow you to learn different types of orders, transactions fees and the how-to’s of investing.

How to begin? First, register an account with StockTraks, Inc. by the end of January and explore their website. Go to the Research tab and watch a few trading videos and other documents of interest. During the month of January read, explore and absorb information on various companies. Make a list of stocks, bonds or exchange traded funds (ETFs) that you would like to trade. Note: ETFs are ready-made portfolios that trade like individual stocks.

StockTraks trading provides you a safe, private way to learn the basics at your own pace. You will learn: how to place different types of orders, the impact of transactions fees and the types of analysis most frequently use. You may allocate your funds as you see fit i.e. you may place as little or as much as you deem appropriate in each securities. However, since this is a derivatives class, the majority of your focus should be on stocks, ETFs and bonds. Specifically,

1. On Feb. 1st establish Portfolio#1: by going to StockTraks and The Trading Portfolio,implementing your trades. All securities traded this semester, with the three exceptions identified in 2, are part of your Trading Portfolio. 2. On Feb. 10th, establish Portfolio#2: , by establishing: i) a long The Buy-N-Hold Portfoliomargined position in a stock, ii) a short position in a stock and iii) a long position in a bond. 2. On Apr. 7th, liquidate Portfolio#1 and Portfolio#2. Positions are now closed. 3. You may allocate your funds as you see fit i.e. you may place as little (as long as it is not zero) or as much as you deem appropriate in each required security. 4. All other securities purchased are part of your Trading Portfolio. You may invest in any stock, bond or ETF. 5. You are required to trade at least 1 time per week.

Margin Requirements IM MM 1. Long Margin 56% 48% 2. Short Margin 61% 53%



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6. You must make a minimum of 30 total trades this semester but no more than 200. 7. You are required to have a good mix of long and short holdings. 8. You are required to place at least three types of orders: Market order, limit order and another of your choice. 9. There are no specific page-length requirements but brevity is appreciated. 10. To watch trading videos login to your StockTrak account, at the top Trading Videos: click the ‘Research’ tab and scroll all the way down to the trading videos. 11. All documents should be named:

<StockTraks#X(FIN3520).FirstName,LastName>

Abbreviation Key VR#X = Video Response required, where X = 1 through 14. PQ#X = Practice Question, where X = 1 through 7. EX#X = Exercise, where X = 1 through 8. D#X = Discussion, where X =1 through 5.

(subject to change)VI. COURSE SCHEDULE

Syllabus Folder (6%) Due Dates Points

Titles Specifics 20-‐Jan-‐31-‐Jan 50 Students Only Discussion Forum Link None

1. Syllabus (SY3520 (SP15) 20-‐Jan 2. Suggested Syllabus Schedule N/A 3. Get Your Computer Ready! 20-‐Jan 4. Wall Street Journal Subscription 20-‐Jan 5. EX#1: Syllabus Contract 23-‐Jan 10 6. D#1: Truth or Lie 5:30-‐6:45pm 23-‐Jan 10 7. D#2: Investment Advice? 5:30-‐6:45pm 25-‐Jan 10

8. Wall Street: The Great Game 31-‐Jan 9. EX#2: Wall Street Questions 31-‐Jan 20 10. StockTraks Registration 31-‐Jan 11. Netiquette Statement 31-‐Jan 12. E-‐Mail Communication 31-‐Jan



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(cont.) COURSE SCHEDULE

Titles Specifics Date Date Points Unit#1: Selection (24%) Specifics 1-‐Feb-‐28-‐Feb 205

1. Lec#1: Introduction to Investments VR#1-‐VR#2 28-‐Feb 10 2. Lec#2: Capital Markets VR#3 28-‐Feb 10 3. Lec#2 Comprehension. 28-‐Feb 20 4. Lec#3: Selection Criteria VR#4 28-‐Feb 10 5. Lec#3 Comprehension 28-‐Feb 20 6. PS#1: Selection Justification 28-‐Feb 0 7. Lec#4: Technical vs Fundamental Analysis VR#5 28-‐Feb 10 8. Lec#4 Comprehension 28-‐Feb 20 9. Lec#5: Index Selection Analysis VR#6 28-‐Feb 10 10. PS#2: Index Selection 28-‐Feb 0 11. EX#3: Index Analysis 28-‐Feb 40 12. StockTraks#1 28-‐Feb 55

Unit#2: Risk, Riskier and Risk Free (21%) 1-‐Mar to 31-‐Mar 180 1. D#3: Market Efficiency 5:30-‐6:45pm 1-‐Mar 40

2. Lec#6: Risk and Riskier 31-‐Mar 0 3. PS#3: Margin Analysis 31-‐Mar 0 4. EX#4: Margined Trades 31-‐Mar 40 5. Lec#7: Risk-‐Free Security Analysis VR#7 31-‐Mar 10 6. Lec#7 Comprehension 31-‐Mar 25 7. PS#4: Risk-‐Free Security Analysis 31-‐Mar 0 8. StockTraks#2 31-‐Mar 65

SPRING BREAK 21-‐Mar through 29-‐Mar Unit#3: Single Security Analysis (27%) 1-‐Apr to 30-‐Apr 230

1. D#4: Let's Play Devil's Advocate! 5:30-‐6:45pm 1-‐Apr 40

2. EX#5: Decimal Test 30-‐Apr 20 3. Lec#8: Returns Analysis-‐Individual Securities VR#8 30-‐Apr 10 4. PS#5: Return Analysis 30-‐Apr 0 5. EX#6: Measuring Returns on Stocks/Bonds 30-‐Apr 55 6. Lec#9 Risk Analysis-‐Individual Securities VR9-‐VR#10 30-‐Apr 15 7. PS#6: Measuring Risk 30-‐Apr 0 8. Lec#10: Problems with Beta VR#11-‐VR#13 30-‐Apr 30 9. EX#7: Measuring Risk on Single Securities 30-‐Apr 60

Unit#4: Portfolio Analysis (21%) 1-‐May to 15-‐May 175 1. D#5: Psychology and Investing 5:30-‐6:45pm 1-‐May 40

2. Lec#11: Portfolio Theory VR#14 15-‐May 15 3. PS#7: Portfolio Analysis 15-‐May 0 4. EX#8: Portfolio Risk 15-‐May 55 5. StockTraks#3 15-‐May 65

Total Class Pts 840



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VII. Help Resources Folder The Help Resources folder is located on the left side of your screen under the course menu. This file currently contains available to you to aid the learning 30 resources process (see below). Students come to this course with various backgrounds and levels of understanding, the Help material provides information to equalizes students’ mastery. The color-coding below matches that of the Class Schedule. When you have questions about an assignment or a lecture or maybe you are just lost and confused. What to do? Click the Help Resources folder and check the titles to see if there are links that will help you. If not, contact the professor and state the name of the assignment and your question. Response Time: E-mails will be answered within 24 hours. If you need a faster response, you may text or call.

Help Resources Folder 1. Market Efficiency 2. How to Make a Million Dollars! 3. Worst Investment Advice 4. The Art of Short Selling 5. Stock Picking Strategies using Fundamental Analysis 6. Technical vs Fundamental Analysis 7. Ratio Formulas 8. How Risky is that stock? 9. Beginners Guide to the Stock Market 10. How to Select a Stock. 11. Stock and Stock Index Quotations. 12. Major Stock Market Indexes You Should Know 13. Stock Index Weighting Methods 14. The Risk-Reward Trade Off. 15. The Basics of Margin Trading 16. The Dangers of Trading Stock on Margin 17. Cash Equivalents (i.e. T-bills, CDs etc…) 18. Asset Allocation 19. Innovation and Regulation of Financial Markets 20. Pros and Cons of Market Regulation 21. Calculating Risk and Reward 22. Regression? Help!! 23. Bond duration and convexity. 24. Bond quiz. 25. How to Read T-bond Quotes? 26. Where Can I Find Bond Prices? 27. Bond Basics-A Review 28. Psychological Pitfalls. 29. Portfolio Theory for Dummies. 30. Portfolio Quick Facts



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VIII. Honor Students There are two finance honor societies at UMSL. They are:

1. Financial Management Association-National Honor Society FMA-NHS) The FMA-NHS is a global organization founded in the 1960s, to provide Professors and practitioners a way to share ideas. Later, the FMA added finance students (in a limited way) to the active and growing organization. The FMA sets objective standards for students to qualify for admission. The UMSL Chapter of the FMA-NHS was founded in 1988. Students with a 3.5 GPA or above, may be eligible for admission to both honor societies. For more information click the FMA-NHS link and contact me if you have any questions.

2. UMSL-Finance Honor Society (UMSL-FHS) In 2002, the UMSL-Finance Honor Society was established as a way to serve the needs of students who cannot (or do not want to) pay the FMA-NHS admission fee (the fee is $35/year). The UMSL-FHS has the exact same requirements as the FMA but with no fee. There are other differences between the two Societies as follows:

Differences i. The FMA provides a subscription to the FMA publication. ii. The FMA costs $35.00/year; the UMSL-FHS costs $0.0. iii. The FMA provides a Careers in Finance booklet. iv. The FMA provides an honor pin and an honor certificate. v. The FMA provides a student website for information on jobs. vi. The FMA provides national and international exposure. The UMSL-FHS

provides local exposure. vii. The highest GPA student from either Society is given the honor to wear the

FMA-NHS sash at graduation. Similarities

i. The UMSL-FHS and the FMA-NHS both provide an honor certificate. ii. Both have the same GPA and course work requirements. iii. Both look very good on your resume.

If you believe you qualify, go to the course menu and click the Finance Honors folder tab on the Course Menu. Two of the documents listed are applications for the NHS and FHS. Download the appropriate document, fill-in the requested information and submit to me for approval.

SYLLABUS INVESTMENTS-SPRING 2015...1 SYLLABUS INVESTMENTS-SPRING 2015 . Welcome to Spring Semester...

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