- 1.5 credits
- Prerequisite: F520
The conceptual and analytical frameworks for investing in equity securities are presented in this course. Coverage includes coverage equity valuation and investment strategies for individuals and institutions. We examine the investment philosophies used by successful institutional investors. The course requires that students develop an investment philosophy and present it to the class.
- Overview of security markets: Market structure, organized exchanges, electronic markets, national market system, and mechanics of investing
- Market indexes: returns and risks over the long run, construction of Russell 3000; valuation of the market ;
- Institutional investing: hedge funds, mutual funds, and pension funds:
- Stock valuation: Fundamental analysis; determinants of valuation; valuation models; forecasting: Top Down - Bottom Up; and application to firms.
- Portfolio management: Portfolio objectives, risk determination, factor models (Fama French and Barra)
- Investing strategies: Growth, value, momentum and others
- Style Management; measuring and communicating the investment style of the fund
- Portfolio performance: Measuring investment returns, performance models, and performance attributes
- International investing: Foreign markets, international investment strategies, and risky foreign investing
- Stocks for the Long Run, by Jeremy J. Siegel, Richard D. Irwin, 1994.
- Investments, Bodie, Kane & Marcus.
- Selected readings from the Financial Analysts Journal, the Journal of Portfolio Management, Institutional Investor and other trade publications.
Course grade will be determined by three deliverables: a stock valuation, an exam and a final presentation.