Department of Finance

School of Business

The George Washington University

                                                                             

 

INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT, FINA 223

Representative Syllabus

 

Professor:               Neil G. Cohen, DBA, CFA
Office:                    Funger Hall 501, Department of Finance, GWU, 2201 G St. NW,  

                                Washington, DC, 20052
Office Hours:          11AM-12Noon, 4-5PM Mon & Wed and by appointment
Phone, Voicemail:   202-994-7276                  

Fax:                        202-994-5014
Email:                     ngcohen@gwu.edu                              

Website:                 http://home.gwu.edu/~ngcohen

 

Course Description:

Follows the body of knowledge of the Chartered Financial Analysts (CFA) program to develop understanding of

·     Valuation and behavior of bonds, bond portfolios, and bond markets

·     Valuation and behavior of equities, equity portfolios, and equity markets

·     Modern portfolio theory

·     Passive and active portfolio management

·     Historical performance of investment products and markets worldwide, i.e., what rate of return can you reasonably expect?

·     Congruence of objectives of money managers and objectives of investors, i.e., the business of investing as opposed to the process of investing

 

Prerequisites        

·       MBad 250, required

·       FINA 221, Financial Decision Making, recommended

·       Acctg 291, Financial Statement Analysis, helpful

 

Required Materials

·       Investments, 6th Edition, Bodie, Kane, Marcus (BKM). McGraw-Hill-Irwin

·       The Wall Street Journal

·       Case Studies

·       Articles

·       …..@gwu.edu email address for Blackboard access

 

HOW THIS COURSE WORKS

 

·     Although this is your first course in investments, you already now the basics of accounting and finance from previous courses. This course builds on what you already know, so you will understand how the investments business works and be able to use analytic techniques underlying decisions made by fixed income analysts, equity analysts, and portfolio managers.

·     The course follows the body of knowledge of the Chartered Financial Analyst (CFA) program, with problems and case studies from CFA exams as the centerpieces of most assignments.

·     You gain understanding of terms and concepts from the BKM textbook, which is important. Developing analytic thinking skills is more important - that will get you much farther than the mere ability to regurgitate what the book says. The professor guides you through BKM chapters, pointing out what is most important and what is less so, and shows you how to approach the problems and cases which are the guts of the course.

·     Problems and case studies are discussed in a hands-on workshop format, combined with mini-lectures.

·     Several practitioners will visit the class, either live or by speakerphone, to tell you how they work and answer your questions.

 

Problem and case study write-ups

·     Your write-ups are the basis for learning and for using class time effectively. Therefore, preparation of an independently-prepared write-up is required.

·     Group work and teamwork is highly recommended, but group write-ups are not acceptable. Use the results of teamwork and jointly prepared exhibits as the take-off point for your own write-up. Cite names of each contributor on each group-prepared exhibit.

·     Write-ups will be collected and graded at random several times during the semester. When they are not graded, 2 hours of discussion time gives you ample opportunity to appraise the quality of your work and ask the necessary questions.

·     Write-ups count only for 20% of your final grade. The professor/coach does not expect perfection - he regards them as work-in-progress, not finished product - a single homework assignment. Do the best you can with the analysis. When a decision or recommendation is needed, make it and write it down. Then you are ready to participate in the class discussion, which is 40% of your grade, to identify your mistakes and ask the questions to fix them.

 

Grading

·     Much of the learning occurs during the class, as you work through a problem or case study prepared in advance, ask questions about it, and improve on it.  Therefore, attendance is mandatory. If you decide to miss a class, that is up to you. Please do not ask for permission to do so. You are responsible for anything missed.

·     Late write-ups are not acceptable because that defeats the style of the course – advance preparation for class discussion. Please do not ask for permission to hand in a late paper.

·     Class Participation    40%

·     Written Summaries   20%

·     Quizzes                   40%

·     No make-ups for missed quizzes.

 

GWU Code of Academic Integrity

·       This course follows the provisions for academic integrity published by the University. Violation of any provision is grounds for a course grade of F.

 

Optional Riggs Prize Competition

Two-person teams can submit written projects. No extra course credit is given, but the work can be based on coursework already done. The professor selects the best six projects and a committee of practitioners selects the top three. First prize is $750; second $500; and third $250. Guidelines for the project will be handed out in class.

 

 

ASSIGNMENTS

(subject to minor revisions)

 

Though BKM is an excellent, popular text, it alone does not facilitate the kind of learning that we are aiming for. Because of its bulk, it must be used selectively. Time at the end of each class will be devoted to suggestions for reading, scanning, and/or studying BKM chapters assigned for the following week.

 

*For some days where multiple problems are assigned, the workload will be divided and assigned to specific students for presentation in class.  

 

If the University closes for snow or some other emergency, class will be held at the usual time via Blackboard chatroom.

 

DATE

TOPIC

BKM CHAPTERS

BKM PROBLEMS*

OTHER

JAN 19

Fixed Income

Securities

14,15

14: 7,8,13,23,27

15: 9,11,12

 

JAN 26

…continued

16,5

16:4,11,20,24,25

 

 

FEB 2

Equity Securities

19

19: 5,6,10-13

Diagram #1

FEB 9

…continued

17,18

17: 17,18

18: 9-11,21-22,25-26

Article #1

FEB 16

Portfolio Theory

6,7,8,9,10

Replicate Concept Checks

Diagram #2

FEB 23

…continued

FIRST QUIZ

11,12,13

Replicate Concept Checks

Top Ten List

MAR 2

Background

1,2,3,4

TBA

Article #2

MAR 9

Portfolio Management

24,25

24: 7,8,12,13,14

25: 4,7

Diagram #3

MAR 23

…continued

26,27

26: 6, 9-10

27: TBA

Article #3

MAR 30

Derivatives

20,21

TBA

 

APR 6

…continued

SECOND QUIZ

22,23

Hedge Fund case

 

APR 13

Applications

 

Bunsen Advisors

 

APR 20

…continued

 

Maryland Pension Fund

 

APR 27

…continued

 

TBA

 

 

 

(Please fill this out and turn it in)

 

STUDENT INFORMATION

                                                          FINA 223

 

 

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FINANCE & ACCOUNTING COURSES TAKEN:

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POST‑MBA PLANS

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