College of Business and Economics

West Virginia University

FIN 527 Alternative Investments
Spring 2011
CRN: 17229
Monday, Wednesday, 6:00-7:15 p.m., 244 B&E

Course Description: Alternative asset markets are an interesting and increasingly important segment of financial markets. This course examines how alternative asset markets operate, how alternative assets are valued, and how they can be used to improve performance of investment portfolios. The structure of the course generally follows the alternative asset portion of the CFA curriculum.

Course Objectives and Learning Outcomes: Upon successful completion of this course, the student will:

• Understand the history, the current state of development and key characteristics of alternative asset markets.
• Be comfortable with structures and operating principles of different categories of financial intermediaries facilitating investor access to alternative assets.
• Be able to apply valuation techniques to investments in private equity, hedge funds, commodities, and real estate.
• Be able to evaluate performance of alternative investment vehicles.
• Understand how to use alternative assets in investment portfolios.

Prerequisites: FIN 526 Portfolio Management. I will assume that students are comfortable with Excel.

Required Text: Alternative Asset Valuation, CFA Program Curriculum, CFA Institute, Level II, 2011.

Students should review the required reading material prior to class. I expect you to come to class prepared for active participation.

Recommended Text: Mark Anson, The Handbook of Alternative Assets, 2^nd Edition, Wiley, 2006.

WVU eCampus: I will use WVU eCampus (https://ecampus.wvu.edu/) throughout the course to post announcements, classroom handouts and other class materials.

Course Activities:

• Analytical Projects: The projects will involve analysis of alternative asset returns and of the contribution of alternative assets to risk and expected return of investment portfolios. The tentative due dates are shown on the course schedule. No projects will be accepted after the due date. You may work individually or in a group of two. Detailed instructions will be provided.
• Case Study Presentations: Teams consisting of four students each will present case studies in February and March. A short paper analyzing the case study will also be required.

Regularly Scheduled Exams: There will be two midterm exams during the semester, tentatively scheduled for February 9 and April 6. The midterm exam dates will be confirmed at least a week in advance of the exam. A comprehensive final exam is scheduled for 8:00 a.m. on May 7. No make-up exams will be given except by prior arrangement with the instructor.

Attendance: Regular attendance is important. Students who attend classes regularly tend to earn higher grades. Consistent with WVU guidelines, students absent from regularly scheduled examinations because of authorized University activities will have the opportunity to take them at an alternate time.

Class Participation: Student involvement in class discussion is an important part of this class. All questions and comments are encouraged and welcome.

Determination of Grade: Your grade for the course will be determined as follows:

The final grade will be determined using the following scale: A: 90-100; B: 80-89; C: 70-79; D: 60-69; F: below 60.

Social Justice Statement: West Virginia University is committed to social justice. I concur with that commitment and expect to maintain a positive learning environment based on open communication, mutual respect, and nondiscrimination. Our University does not discriminate on the basis of race, sex, age, disability, veteran status, religion, sexual orientation, color or national origin. Any suggestions as to how to further such a positive and open environment in this class will be appreciated and given serious consideration. If you are a person with a disability and anticipate needing any type of accommodation in order to participate in this class, please advise me and make appropriate arrangement with Disability Services (293-6700).

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

Tentative Course Schedule

NOTE: The instructor reserves the right to change this syllabus as time and circumstances dictate. Necessary changes will be announced in class in advance when possible.

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