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2020/2021  BA-BHAAI1066U  Principles of Investment Finance

English Title
Principles of Investment Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 120
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Michael Nugent - Department of Accounting (AA)
For academic questions related to the course, please contact instructor Michael Nugent at mn.acc@cbs.dk or michael.nugent@stonybrook.edu
Main academic disciplines
  • Finance
Teaching methods
  • Online teaching
Last updated on 21/01/2021

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Explain and employ the terms and tools used by investment professionals
  • Differentiate between the various financial instruments available to investors
  • Demonstrate understanding of fundamental finance concepts such as Portfolio Theory, Capital Asset Pricing Model, Efficient Markets Hypothesis
  • Distinguish Behavioral Finance from Standard Finance and assess their respective usefulness and limitations
  • Evaluate the performance of a portfolio using risk-adjusted return measures
  • Develop the ability to solve quantitative problems related to: risk and return, security valuation, portfolio optimization and hedging.
Course prerequisites
None
Examination
Principles of Investment Finance:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
4 hour home assignment. No requirement for maximum number of pages.
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4-hour home assignment in the period of 26–30 July 2021
Retake exam: 4-hour home assignment in the period of 20 – 24 September 2021
3rd attempt (2nd retake) exam: 72-hour home assignment – 22 – 25 November 2021 – for all ISUP courses
simultaneously

Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Make-up exam/re-exam
Same examination form as the ordinary exam
Retake exam: 4 hour home assignment, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content, structure and pedagogical approach

The goal of this course is to introduce the student to the world of investments.  Principles of Investment Finance will strive to help students develop an understanding of individual investment decision-making, by introducing topics and techniques used by both personal investors and money managers. The course focuses on both individual securities and portfolios, teaching students to consider the risk and return of different types of investments and how to use this knowledge to achieve financial goals. There will be a focus on stock and bond investing. The course will cover the mechanics of buying and selling securities, efficient market theory, portfolios, diversification, stock valuation, and international investing. 

 

Preliminary assignment: Start thinking about stock market investing. 
Read chapter 1 of our textbook Fundamentals of Investments by Smart and Zutter. Then log on to finance.yahoo.com. Search for a) Apple Computers and b) Carlsberg A/S. Click on Profile to read about their businesses. Go to Key Statistics: How many shares are outstanding? What is their total market cap? Financials: What were their profits last year? What is their P/E ratio? What were the average price target forecasts? Do you think they look like good buys at present levels? Why or why not? How do their sustainability performances affect your decision? Come to class (first session) to talk about these issues. 

 

Class 1. The Investment Environment

Class 2. Securities Markets and Transactions

Class 3. Investment Information and Securities Transactions

Class 4. Return and Risk

Class 5. Modern Portfolio Concepts

Class 6. Common Stocks

(Feedback Activity: Course review and Q&A 

Class 7. Analyzing Common Stocks

Class 8. Stock Valuation

Class 9. Market Efficiency and Behavioral Finance

Class 10. Mutual Funds and Exchange-Traded Funds

Class 11. Fixed Income and Bond Investing

 

Description of the teaching methods
This year all courses are taught digitally over the Internet. Instructors will apply direct/live teaching through a link (like Skype, Team, Zoom). In some courses, pre-recorded material will also be used.
Feedback during the teaching period
Comprehensive review of chapters, FAQs and frequently made mistakes. Including a session on how to best prepare for the final exam.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

 

Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams

 

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams in March 2020.

 

Expected literature

Mandatory readings:

 

Fundamentals of Investing, Global Edition, 14 edition 

Authors: Gitman, Smart, Zutter & Joehnk

Publisher: Pearson 

ISBN-10 : 1292316977

ISBN-13 : 978-1292316970

 

 


 

Last updated on 21/01/2021