Academic Year 2021 - 2022
Course Title
MLI26C720 Investments and Portfolio Management 6 cr Learning Outcomes and Content
Outcome: Learning outcomes for this course, upon successful completion, include the ability to: 1) formulate a description of the overall investment process, 2) demonstrate knowledge of various financial instruments and asset classes, including trading aspects, 3) present basic capital market information and compare the historical risk-return experiences from a global markets perspective, and 4) implement and evaluate various portfolio
performance measures.
Content: This hands-on course examines the valuation, selection and management of financial assets in a global market context. Including: concepts associated with efficient capital markets; behavioral finance; modern portfolio theory; asset pricing models; security valuation principles and practices; introductory analysis and management of different asset classes such as bonds, common stocks, FX, commodities and derivative securities;
portfolio performance evaluation procedures; and a review of current trends in securitization and innovations such as Social Impact Bonds and Crowd Funding.
Instructor Name and Profile
Dr. A. Can Inci is a Professor of Finance at Bryant University in Rhode Island, USA. He teaches courses in Innovations in Finance, Securities Analysis, Investments, Financial Management, and International Business. He received his PhD in Finance from University of Michigan – Ann Arbor. He also has an MBA from Ohio State University, MSc in Control Systems from Imperial College – University of London, and BSc – Electrical and
Electronics Engineering from Bogazici University – Istanbul.
His research is about international investments, term structure of interest rates and currencies, futures markets, energy, behavioral finance, insider trading, market
microstructure, and intraday volatility. Prof. Inci has had more than 40 publications in top academic journals. Prof. Inci is on the editorial board of Global Finance Journal, Journal of American Business Review, and others. He serves as a mentor for Honors students at Bryant University, is an Emerald Literati outstanding reviewer, and a CAIA member.
Email Address [email protected] Office Hours
Monday – Thursday: 1pm – 2pm and by appointment Required Reading
Essentials of Investments, by Bodie, Kane, Marcus, 12th ed., (McGraw-Hill Irwin) (Earlier editions will not be accepted)
Lecture notes will be available at MyCourses Online Learning Environment
Course Schedule
Session # and Date Topic/s Assignment/s
Session 1:
January 3 (M)
An exception for courses starting on January 3: no point deduction will be made for an absence on the first day.
Chapter 1: Investments: Background and Issues
Chapter 3: Securities Markets and How Securities are Traded
Read Ch1 & Ch3 after class
Session 2:
January 4 (T)
Chapter 4: Mutual Funds, Hedge Funds
Chapter 5: Risk and Return: Past and Prologue
Read Ch4 & Ch5 after class
Session 3:
January 5 (W)
Chapter 6: Efficient Diversification Read Ch6 after class Epiphany
January 6 (TH)
No Course Activities
We will have extra 10 minutes extra class time every day from the first class on to make up the time.
The missed 3 hours will have to be made up during the course, by adding extra time to several sessions.
Session 4:
January 7 (F)
Chapter 6: Modern Portfolio Theory Read Ch6 after class Discussion report on FinTech due Time:
15:00 Session 5:
January 10 (M)
Chapter 7: Asset Pricing Models Chapter 13: Equity Valuation
Read Ch7 & Ch13 after class
Session 6:
January 11 (T)
Chapter 12: Macroeconomic and Industry Analysis
Read Ch12 after class Session 7:
January 12 (W)
MIDTERM Exam Start Time: 9:00
Session 8:
January 13 (TH)
Chapter 14: Financial Statement Analysis
Read Ch14 after class Session 9:
January 14 (F)
Chapter 8: Efficient Markets and Behavioral Critique
Read Ch8 after class Optimal Portfolio Project due Time:
15:00 Session 10:
January 17 (M)
Chapter 9: Behavioral Finance and Technical Analysis
Read Ch9 after class Session 11:
January 18 (T)
Chapter 10 Bond Prices and Yields Chapter 11 Managing Bond
Portfolios
Read Ch10 & Ch11 after class
Session 12:
January 19 (W)
Chapter 15 Options Markets Chapter 16 Option Valuation
Read Ch15 & Ch16 after class
StockTrak Project due Time: 22:00
Session 13:
January 20 (TH)
Chapter 17 Futures Markets Read Ch17 after class Session 14:
January 21 (F)
FINAL EXAM Start Time: 9:00
Grading
Course Requirements Weighting (%) or
maximum points
Midterm Exam [Jan.12th, 9:00 Finland time] 25%
Final Exam [Jan.21st, 9:00 Finland time] 25%
Discussion report on FinTech [due Jan.7th, 15:00 Finland time] 10%
Optimal Portfolio Project [due Jan.14th, 15:00 Finland time] 10%
StockTrak Group Project [due Jan.19th, 22:00 Finland time] 25%
Class participation, Random Quizzes 5%
Total 100%
Conversion scale Final grade (official scale)
90 - 100 5
80 – 89.99 4
70 – 79.99 3
60 – 69.99 2
50 – 59.99 1
0 – 49.99 0
Discussion report on FinTech [due Friday of 1
stwk: Jan.7
th, 15:00 Finland time]
FinTech concepts, ideas, and innovations are starting to dominate the finance industry. I will provide you a list of topics from which you will choose one, conduct research, and write a 3- page report on the topic. I will provide you the list of topics during the first week of classes.
Optimal Portfolio Project [due Friday of 2
ndwk: Jan.14
th, 15:00 Finland time]
I will teach you how to create an optimal portfolio when a client (or your family, or yourself) provides funding and a wish-list of securities. This is called modern portfolio theory. We will apply this theory to a project where you will create such a portfolio and compute the portfolio characteristics. You will write a report of your analyses and findings. I will provide the details when we cover the topic in our class.
StockTrak Group Project [due Wed of 3
rdwk: Jan.19
th, 22:00 Finland time]
You will be required to participate in a simulated trading game. You will open a group account online. You will be required to trade securities based on certain strategies on stocks, bonds, (and other securities) with your teammates. To help you get the most of this trading project, I will provide you with guidelines, and help you along the way. Every week I will provide you 3 small projects which you will work on with your group and write-up your findings. At the end, you will evaluate your performance by computing your returns in excess of that of a broad market index. More details will be provided in class. The aim of this project is for you to have discussions with your teammates and get real life experience on the topics covered in class.
Class participation, Random Quizzes
In order to keep up with the material in our class, punctual attendance and participation are absolutely necessary (unless there is a legitimate excuse with documentation, such as a job interview). You must participate in the discussion by asking questions, and voicing your opinions. Interaction enables one to learn the material faster and better. To make sure this happens, I will take attendance daily and will give short quizzes.
ACADEMIC POLICY STATEMENTS ECTS STUDENT WORKLOAD
This course is a 6 ECTS unit course, following the ECTS (European Credit Transfer System) guidelines of Aalto University School of Business. The number of hours the average student is expected to work in the course is 160 (including in-class and out-of- class work).
Types of Hours Number of Hours
Contact hours (on- and off-campus): 45
Out-of-class hours: 115
Work with course materials, eg required reading 25
Exam preparation 30
Individual research & writing 20
Projects (meetings, research, preparation, etc.) 40
Other
Total of all student workload hours 160
CODES OF CONDUCT
Academic excellence and high achievement levels are only possible in an environment where the highest standards of academic honesty and integrity are maintained. Students are expected to abide by the Aalto University Code of Academic Integrity, other relevant codes and regulations, as well as the canons of ethical conduct within the disciplines of business and management education.
In addition, the BScBA Program has strict exam regulations in force which must be followed in all test-taking situations.
TEXTBOOK POLICY
All required textbooks and other course materials are the responsibility of the student. It is the expectation of faculty that all students will have access to the textbooks and other reading material. If a student is not able to purchase his/her own copy of the textbook or other required reading materials, it is nonetheless the student’s responsibility to find a way to complete the reading for the course.
CLASS ATTENDANCE AND PARTICIPATION (2021 - 2022 Pilot)
Class attendance and participation are considered integral parts of teaching and learning at the BScBA program in Mikkeli. Therefore, regular class attendance is required of all students and attendance records are kept for each class. Students are also expected to be in class on time.
If the student participates in the final exam/assessment, it will be graded and counted towards the final grade.
The attendance policy of the BScBA program (piloted in the academic year 2021 - 2022) provides that:
1) A maximum of three absences of any kind is allowed for a 3-week, 6-credit course. Four or more absences will result in being dropped from the course.
2) Whenever taking an absence, the student bears the risk of missing class, and the consequences, which may include a lower participation grade, missing a graded activity, etc.
3) An absence on the first day of the course will result in 5 points (on a 100-point
5) It is expected that students marked present for the day are in class the entire time.
6) The instructor may include class participation as a component of the grade;
up to 15% of the total points that can be earned toward the final grade.
The instructor for the course will take attendance in classes. The decision to drop a student from a course will be made by the instructor, who will inform Mari Syväoja, Manager of Academic Operations: [email protected].
This new policy will be in use as a pilot process for the academic year 2021 - 2022 and will be evaluated after that.
