Fin 362 Asset Valuation
Course description
The course deals to familiarize students with the fundamental tools of asset valuation and to acquaint them with the theoretical and empirical implications of the financial environment. The course is also designed to impart the core skills required by the modern portfolio managers. Students will be taught the financial statement analysis, compute the present value of future cash flows of the different financial assets like Equities, Preferred, and Bonds.
Methodology
We will use lectures, case discussions and overview of some applications to topics of financial analysis.
Course objectives
The main objective of the course is to understand, evaluate and practice the main concept of the valuation theory regarding different financial securities and asset classes. Throughout the semester we will learn, practice and apply the concepts of mutual funds operation, valuation of NAV, CAPM, financial Statement Analysis, Macroeconomic and Industry Analysis, Equity Valuation, Bond Prices and Yields, Managing Bond Portfolios, Option Valuation etc.
Required Textbook
Investments and Portfolio Management
Bodie, Kane & Marcus, 11th Edition, McGraw-Hill
Required Chapters: 4,9,14,16,17,18,19 & 21.
Course outline (Proposed)
| Topics to be Covered | ||
| List of Topics | No. of Weeks | Contact hours |
| Ch.4: Mutual Funds and Other Investment Companies | 1 | 3 |
| Ch.9: The Capital Asset Pricing Model (CAPM) | 2 | 6 |
| Ch.19: Financial Statement Analysis
|
2 | 6 |
| 1st Mid Term Exam, Thursday, 12-07-2018 (28-10-1439 H) 4 PM to 5 PM | ||
| Ch.17: Macroeconomic and Industry Analysis | 2 | 6 |
| Ch.18: Equity Valuation *Instructor might need to use outside material to add to this chapter. Our department is committed to provide whatever outside material necessary to aid the instructor to deliver on this chapter* |
2 | 6 |
| Ch.14: Bond Prices and Yields | 2 | 6 |
| 2nd Mid Term Exam, Thursday, 2-08-2018 (20-11-1439 H) 4 PM to 5 PM | ||
| Ch.16: Managing Bond Portfolios | 2 | 6 |
| Ch.21: Option Valuation (RECOMMENDED) | 2 | 6 |
Exams and Grading
Exams
There will be three multiple-choice exams: Two midterm exams and a final exam. There may also be Quizzes and project.
The first mid-term exam will cover chapters 4, 9, 19
The second mid-term exam will cover chapters 17, 18, 14
The final exam will be a cumulative test.
You are not allowed to refer to textbook or class notes during the exams.
Exam Regulations
- Students are NOT allowed to TALK to each other during the exam.
- Students are NOT allowed to BRING their Electronic devices, Bags, and Sunglasses into the examination room.
- Students must SHOW their photo IDs and SIGN the attendance sheet.
- Exchange of calculators is strictly prohibited during the exam.
- Each student must have his/her calculator (no borrowing or lending is allowed).
- The use of cell phone/mobile phone is strictly prohibited and even the use of it to check for time will be interpreted as an attempt of cheating, which gives the proctor of the exam the right to seize the cell phone and remove the student from the class room (i.e., the student will get a zero on the exam).
- The exam sheets (questions sheet and answer sheet) must be returned to the proctors of the exam after the student is done with the exam.
Grading distribution:
Your final grade will be based on your performance on two exams, two quizzes, and class participation.
1st Mid- Term Exam 20%
2nd Mid- Term Exam 20%
Quizzes / Assignments / Project 10%
Class Participation & Attendance 10%
Final Exam 40%
Total 100%
Regular and punctual attendance at all scheduled classes is expected from all students. Students may be denied entry to the final exam if they miss more than 25% of classes.