3FB3 – Winter 2012 - Page 2 of 9
The course begins with an overview of the structure of financial markets in Canada and in the
United States, followed by a more in-depth analysis of key investment topics. These topics include
asset allocation and portfolio management, assessment of portfolio performance, the capital asset
pricing model, term structure of interest rates, valuation of stocks and bonds, capital market
efficiency, and behavioural finance. This course serves as a useful introduction to the Chartered
Financial Analyst (CFA) curriculum (
Upon completion of this course, students should:
Have a good understanding of various financial assets;
Have a good understanding of the functioning of security markets; and
More importantly, be able to think logically and systematically.
Avenue registration for course content, readings, and case materials
Seventh Canadian Edition, by Z. Bodie, A. Kane, A.J. Marcus, S. Perrakis,
Ryan; McGraw-Hill Ryerson, 2011.
A Texas Instruments BA II Plus financial calculator is recommended and will be used in class.
However, any calculator that performs time value of money functions is acceptable.
A combination of lectures, discussion and problem solving.
Students will be encouraged to think,
analyze, evaluate, and problem-solve, not memorize.
Students are expected to come to class on
time and be prepared for the class, i.e., to have read the assigned reading and to have done the
Your final grade will be calculated as follows:
Components and Weights