INDEPENDENT UNIVERSITY, BANGLADESH

School of Business
BBA Program Course Outline

Semester Course Code Course Title Section

Spring 2020 FIN 460 Investment Management 02

Instructor : Dr. Sarwar Uddin Ahmed Class Time: MW 15:20 P.M – 16:50 P.M
Office : 2008 Class Room: BC 2012
Phone : Ext. 2122 Office Hours: Before class or by appointment
Email : [email protected] Blackboard Address: cmos.iub.edu.bd/sb/login/index.php

COURSE DESCRIPTION:
This course emphasizes on the theory and practice of investment decisions facing financial managers and
individual investors. Distinctive topics include securities markets, valuation of stocks and bonds, efficient
market theory, asset pricing, security analysis and emerging markets. Sometime will be devoted for
understanding the relation of investment management to other business management functions.

PREREQUISITE: Successful completion of FIN 302 Business Finance

COURSE OBJECTIVES:
1. The main objective of this course is to acquaint students with financial concepts and tools needed to
manage investment in the most efficient manner.
2. More specific objective includes, improving the analyzing and communicating skill of the students
required for informed investment decision making.

TEXT BOOK:
 Charles P. Jones “Investments: Principles and Concepts” 12 th Edition

RECOMMENDED REFERENCE TEXT:

 Academic Research Papers on Blackboard

COURSE PLAN:
Sessions Date Topic Learning Outcomes Readings
Overview of Introduction to Investment Course Outline
Session -1 20/01/20 Investment Explanation of Course Outline Chapter-1
An Overall Perspective on Investing,
Some Definitions,
A Perspective on Investing in Financial Assets,
Session -2 22/01/20 Overview of The Importance of Studying Investments, Charles P. Jones
Investment Chapter-1
The Personal Aspects, Investments as a Profession
Understanding the Investment Decision Process,
The Basis of Investment Decisions: Return and Risk
Organizing Financial Assets,
Direct Investing,
Session -3 27/01/20 Investment Nonmarketable Financial Assets, Charles P. Jones
Alternatives Money Market Securities, Chapter-2
Fixed-Income Securities,
Bonds
Session -4 29/01/20 Investment Asset-Backed Securities, Charles P. Jones
Alternatives Equity Securities, Chapter-2
Preferred Stock,
Common Stock,
Derivative Securities,
Options,
Futures Contracts,
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 Sessions Date Topic Learning Outcomes Readings
Quiz 1: Chapter 1 and 2
The Importance of Financial Markets,
Securities The Primary Markets,
Session -5 03/02/20 Markets Initial Public Offerings (IPOs), Charles P. Jones
Chapter-4
The Investment Banker,
Private Placements
The Secondary Markets, Chapter-4
Securities The New York Stock Exchange, Case: Dhaka Stock
Session-6 05/02/20 Markets Dhaka Stock Exchange, Exchange
Over-the-Counter Stocks, Ahmed et. al 2012
Stock Market Indexes
Case: Dhaka Stock
Session-7 10/02/20 Case Presentation Exchange
Ahmed et. al 2012
Dealing with Uncertainty,
Using Probabilities,
Portfolio
Session -8 12/02/20 Theory Probability Distributions, Charles P. Jones
Calculating Expected Return for a Security, Chapter-7
Calculating Risk for a Security,
Introduction to Modern Portfolio Theory (MPT)
Portfolio Return and Risk,
Portfolio Expected Return,
Portfolio Risk,
Risk Reduction¿ The Insurance Principle,
Diversification,
Portfolio The Components of Portfolio Risk,
Session -9 17/02/20 Theory Relating the Correlation Coefficient and the Charles P. Jones
Chapter-7
Covariance,
Calculating Portfolio Risk,
The Two-Security Case
The n-Security Case,
Simplifying the Markowitz Calculations
Quiz 2: Chapter 4 and 7
Session -10 19/02/20 Review Class
Midterm
Session -11 24/02/20 CHAPTERS 1 2 4 and 7
Exam
Building a Portfolio Using Markowitz Principles,
Identifying Optimal Risk-Return Combinations,
Portfolio
Session -12 26/02/20 Selection Some Important Conclusions About the Markowitz Charles P. Jones
Model, Chapter-8
Alternative Methods of Obtaining the Efficient
Frontier
The Single-Index Model,
Multi-Index Models,
Portfolio Return and Risk Combinations,
Session -13 02/03/20 Selection The Impact of Diversification on Risk, Charles P. Jones
Chapter-8
Systematic and Nonsystematic Risk, 219
How Many Securities are Enough to Diversify
Properly?
Capital Market Theory,
Capital Market Theory Assumptions,
Introduction of the Risk-Free Asset,
Risk-Free Borrowing and Lending,
The Equilibrium Return-Risk Trade-off,
Asset Pricing The Capital Market Line,
Session -14 04/03/20 Models The Security Market Line, Charles P. Jones
Chapter-9
Beta,
The CAPM’s Expected Return, Beta Relationship,
Over-and-Undervalued Securities,
Arbitrage Pricing Theory,
Using APT in Investment Decisions,
Some Conclusions about Asset Pricing
2
 Sessions Date Topic Learning Outcomes Readings
The CAPM’s Expected Return, Beta Relationship,
Over-and-Undervalued Securities,
Asset Pricing Arbitrage Pricing Theory,
Session -15 09/03/20 Models Using APT in Investment Decisions, Charles P. Jones
Chapter-9
Some Conclusions about Asset Pricing,
Relevant Problem Solving
Quiz 3: Chapter 8 and 9
Discounted Cash Flow Techniques,
Common The Dividend Discount Model,
Session -16 11/03/20 Stock What about Capital Gains? Charles P. Jones
Valuation Other Discounted Cash Flow Approaches, Chapter-10
Intrinsic Value and Market Price

Relative Valuation Techniques,

Common The P/E Ratio or Earnings Multiplier Approach,
Session -17 16/03/20 Stock Price/Book Value, Charles P. Jones
Valuation Price/Sales Ratio (PRS), Chapter-10
Economic Value Added,
Which Approach to Use?
What Is Technical Analysis?
Technical Stock Price and Volume Techniques, Charles P. Jones
Analysis Chapter-16
The Dow Theory,
Session -18 18/03/20 Charts of Price Patterns,
Moving Averages,
Quiz 3
Relative Strength,
Technical Indicators,
Technical Breadth Indicators,
Session -19 19/03/20 Analysis Sentiment Indicators, Charles P. Jones
Chapter-16
Some Conclusions about Technical Analysis,
Quiz 4: Chapter 10 and 16
Relevant Problem Solving
A Framework for Evaluating and Assessing Portfolio
Evaluation of Performance,
Session -20 23/03/20 Investment Three Questions to Answer in Measuring Portfolio Charles P. Jones
Performance Performance, Chapter-22
Return Calculations,
Risk Considerations
Evaluation of Performance Benchmarks,
Session -21 The Sharpe Performance Measure,
25/03/20 Investment Charles P. Jones
Performance The Treynor Performance Measure, Chapter-22
Jensen’s Differential Return Measure,
An Overview on Performance Evaluation
Session -22 30/03/20 Review Class Final Syllabus
Session -23 01/04/20 Assignment Presentation
Session-24 06/04/20 Assignment Presentation
Session -25 08/04/20 Final Exam Chapter 8, 9, 10, 16,22

COURSE EVALUATION:
Type of Evaluation Nos. Weight
Class Attendance and Participation ~ 05%
Quiz 4 10%
Case/Assignments/ Homework/ 2 15%
Midterm Exam 1 30%
Final Exam 1 40%
Total 100%
PEDAGOGY:
Teaching pedagogy will include lectures, video clips, problem solving, case study, presentation, etc.
3
GRADING POLICY:
The following scheme will be applied in assigning final grade for the course.

Grade Percentage Grade Percentage

A 90 and above C 60 to less than 65
A- 85 to less than 90 C- 55 to less than 60
B+ 80 to less than 85 D+ 50 to less than 55
B 75 to less than 80 D 45 to less than 50
B- 70 to less than 75 F Less than 45
C+ 65 to less than 70

UNFAIR MEANS DURING EXAM:

Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart
electronic devices with them during any exam. Students are advised to keep everything in the front of the
class room before the exam starts. Please note that, just carrying any smart electronic devices (even if the
device is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover,
during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever
is written/ whether used or not) will be considered as “cheating”. Any sorts of “cheating” will result in “F”
grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener,
ruler, highlighter and calculator in a clear plastic bag.

INCOMPLETE (‘I’) GRADE:

Awarding of Incomplete or ‘I’ grades should be strongly discouraged. Consult Green Book for details.

WITHDRAWAL (‘W’):
A ‘W’ grade means withdrawal. A student may decide to withdraw from a course by the deadline.

OTHER IMPORTANT INSTRUCTIONS:

 Course content may vary slightly. These variations will be announced in advance.
 No makeup examinations (quiz, midterm, final) will be taken.
 There will be four (4) quizzes. Two (2) before midterm and two (2) after midterm. An average of
all quizzes will be counted if the student misses any quiz.
 Assignment/Project have to be submitted on due date. Failing to submit on time will be penalized.
 Students are requested to switch off their cell phones inside the classroom.
 Students are not allowed to leave the classroom during the class without permission.
 Remember, class attendance is very important. You need to inform the course instructor for any
foreseeable absences and submit a written application if you miss more than three consecutive
classes.

BLACKBOARD:
 In addition to class teaching, course outline, lecture PowerPoint, announcements and other
information are placed on the blackboard page. Students are advised to check the course blackboard
page and download the required materials from MY SB: Log on to MY SB >
http://oldcmos.iub.edu.bd/sb/

Good Luck