HPR = [P1-P0+CF]/P0
Arithmetic Average: Sum of returns in each period divided by number of returns, Ignores Cash
Flows
Geometric Average (Time-Weighted Average): (1+i1)(1+i2)(1+in)=(1+rg)
Dollar Weigh
Course Syllabus
Summer 2015 5WI
FINA 4200-001
Investments
Instructor: Mucahit Kochan
Class Meetings: M T W R 10:00 a.m.-11:50 a.m. BLB 035
Office Hours: Tuesdays and Thursdays, 8:30 a.m. 9:30 a.m., or
bThe amount of annual earnings available to common stockholders, as stated on per-share basis
is known as Earnings Per Share. True or False? l.
P Owners/stockholders of a ﬁrm, who are entitled to divi
Ch. 3 Outline
1. Investment tools
i. Planning
ii. Screening
iii. Charting
iv. Stock quotes and portfolio Tracking
2. Economic and current event information
i. Financial Journals
1. Wall Street Journal
Chapter 2 outline
Securities Markets
1. Types of Securities Markets broadly classified as either money markets or capital markets.
a. The Primary Market is new issues of securities are sold to investo
Chapter 5 Outline
I.
II.
Principles of Portfolio Planning investors benefit from holding portfolios of investments rather
than single investments.
1. Portfolio Objectives involves definite tradeoffs,
Chapter 3 outline
I.
II.
Investment Research and Planning internet is a major force in the investing environment.
Offers extreme low cost means for executing trades and provides access to tools former
Chapter 3 outline
I.
II.
Investment Research and Planning internet is a major force in the investing environment.
Offers extreme low cost means for executing trades and provides access to tools former
Types of Securities Markets
Securities markets are broadly classified either money markets or capital markets.
Money markets: short-term debt (w/maturities less than 1 yr) are bought and sold.
Capi
Chapter 3
Descriptive info: presents factual data on the past behavior of the economy, market, industry, company, or a given
investment.
Analytical info: presents projections and recommendations about
Chapter 13 outline
1. Constructing a Portfolio Using an Asset Allocation Scheme
a. Investor Characteristics and Objective these factors include the risk and return
characteristics of specific investme
Chapter 14 outline
1. Put and Call Options
a. Basic Features of Puts and Calls the most important feature to understand that options
allow investors to benefit from price changes in the underlying ass
Chapter 15 outline
1. The Futures Market the amount of futures trading in the US has mushroomed over the past 2
or 3 decades. An increasing number of investors have turned to futures trading as a way
HPR = [P1-P0+CF]/P0
Arithmetic Average: Sum of returns in each period divided by number of returns, Ignores Cash
Flows
Geometric Average (Time-Weighted Average): (1+i1)(1+i2)(1+in)=(1+rg)
Dollar Weigh
Chapter 1 Outline: The Investing Environment
Investments and its Process:
An investment is simply any asset into which funds can be placed with the expectation
that it will generate positive income an
Chapter 5 Outline: Modern Portfolio Concepts
Portfolio Objectives:
Ultimate goal of an investor is an efficient portfolio, one that provides the highest return
for a given level of risk.
Portfolio Ret
Chapter 1 Outline
1. Investments and the Investment process
a. An investment is simply any asset into which funds can placed with the
expectation that it will generate positive income and/or increase
Chapter 5 Outline
1. Principles of Portfolio Planning
i. The primary goal of a growth-oriented portfolio is long-term price
appreciation.
ii. An income-oriented portfolio is designed to produce regula
Chapter 4 outline
1. Components of Return
i. Income
ii. Capital Gaines 9or losses)
b. Time value of money and return
i. The phrase the time value of money refers to the fact that it is generally
bette
Exam 1 Review: Students are expected to know the following information:
1. Review Chapter quizzes 1-7
2.
Our Flow
3. Inco Terms: Fill in the correct term
4. Complete Supply Chain Finance Model and cal
Chapter 13
Developing an asset allocation scheme
o Asset allocation involves dividing your portfolio into various asset classes.
Approaches to asset allocation
o The fixed-weightings approach allocat
Chapter 12
An overview of Mutual funds
o Pooled diversification- the mutual fund concept is based on the simple of idea of
combining money from of a group of people with similar investment goals and
i
Chapter 11
The term structure of interest rates and yield curves
o Yield curve, which relates a bonds term to maturity to its yield to maturity at a
given point time.
Explanations of the Term structu
Chapter 14
Basic features of puts and calls
o A negotiable contract
A put enables the holder to sell the underlying security at the specified
price over a set period.
A call gives the holder the rig
Chapter 10 Outline
Why invest in bonds?
o Bonds are negotiable publicly traded, long-term debt securities.
Bonds are often referred to as fixed-income securities because the debt
payments of the issu
Chapter 7 outline
1) Principles of Security analysis
a) Security analysis consists of gathering information, organizing it into logical framework,
and them using the information to determine the intri
Chapter 6 outline
I.
II.
III.
IV.
V.
VI.
VII.
What stocks have to offer
a) Residual owners their claim is subordinate to the claims of other investors, such as
lenders, so for stockholders to get rich
,Chapter 4 Outline: Return and Risk
Components of a Return:
Income-cash that investors periodically receive as a result of owning an investment
Capital Gains (or Losses)
Why Return is Important:
Histo
Chapter 2 Outline: Securities Markets and Transactions
Types of Securities Markets:
Securities Markets-Classified as money markets or capital markets.
The Primary Market-market in which new issues of
Running head: VALUATION METHODS
1
Valuation Methods
Students Name
Institution
VALUATION METHODS
2
Valuation Methods
The capital budgeting valuation methods adopted by the HPC is the payback period and
Markets & Institutions
Formulas
PV = FV / (1+r)^2
PV Annuity = FV x (1/r) x [1 1/(1 + r)^n
Payment
o PV = PMT x [1/(r / ppyr) x [1 1/(1+(r/n)^(ppyr x n)
Discount yield =
o (100 r/100) x (360/t)
o
Formulas
Change in debt held by public (a negative and positive): cash flow positive budget positive and
change sign of answer
Change in debt held by public (double negative): cash flow positive + b
1.
A.
B.
C.
D.
E.
F.
G.
H.
2.
VisionandMission
Entrepreneursvisionforthecompany
Whatbusinessarewein?
Valuesandprinciplesonwhichthebusinessstands
Whatmakesthebusinessunique?Whatisthesourceofitscompetit