West Virginia University

College of Business and Economics

FIN 410 Security Analysis and Portfolio Management
Fall 2005

Class meetings: TR, 2:30-3:45 p.m., 347 B&E

Instructor: Alex Kurov

Office: 219 B&E

Office phone: (304) 293-7892

E-mail: alkurov@mail.wvu.edu

Office hours: TR, 10:00-11:15 a.m., or by appointment.

Course Description: This course serves as your second course in investment analysis and builds on the concepts learned in previous finance courses. The goal of the course is to provide a firm grounding in modern investment theory and good understanding of practical applications of the theory. We will look at risk-return efficiency analysis and factor models used in portfolio management, asset pricing theories, issues related to fixed income portfolio management, and hedging strategies using derivative securities. Additional topics, such as market efficiency, program trading and market microstructure, may be included. Knowledge of basic algebra and familiarity with Excel is assumed. Knowledge of basic calculus is useful.

Materials:

Required text: “Modern Investment Theory,” 5^th Edition by Robert Haugen.

Recommended additional reading: “The Intelligent Asset Allocator” by William Bernstein.

The Wall Street Journal or other financial newspapers are also highly recommended.

WebCT Vista: I will use WebCT Vista (http://vista.wvu.edu) throughout the course to post announcements, classroom handouts and other class materials.

Grading: Your grade for the course will be determined as follows:

No make-up exams will be given except in extraordinary circumstances (suitable documentation will be required). You must contact me in advance if you are unable to be in class when an exam is scheduled.

Your final grade will be determined using the following scale: A: 90-100; B: 80-89; C: 70-79; D: 60-69; F: below 60. I may curve the grades at the end of the semester if I find it necessary.

Reading the Textbook: The textbook is the main source of information for the course. I will make regular assignments from the text. The layout of course requires that you complete the reading assignments prior to class. Your goal in reading must be true understanding of the material, not memorization. I expect you to come to class prepared for active participation.

Homework Assignments: Suggested homework assignments will be posted on WebCT and should be completed, but do not need to be turned in. Working on these assignments will help you prepare for exams. I encourage you to work as many additional problems from the book as possible.

Project: In this project you will apply the material from Chapters 4 (Combining Securities into Portfolios), 5 (Efficient Set), 6 (Factor Models) and 8 (CAPM). You may work individually or in a group of two. Detailed instructions will be provided. The tentative due date is October 22.

Academic Dishonesty: Academic dishonesty in any form will not be tolerated.

Course Outline

The four midterm exams are tentatively scheduled for September 8, September 29, October 27, and November 17. The midterm exam dates will be confirmed at least a week in advance of the exam. The final exam is scheduled for 8:00 p.m. on December 16.

back to home page