August/21/2016 FIN 355 Shengle Lin
Fall 2016 Preliminary Syllabus
FIN 355 - Investment
San Francisco State University
Dr. Shengle Lin
Office Hours 1: Monday 67 PM
Email: [email protected]
Office Hours 2: Wed 14PM
Office: BUS 306
Course Objective: This c
SAN FRANCISCO STATE UNIVERSITY
COLLEGE OF BUSINESS
FIN 355-2: Investments
Fall 2011
INSTRUCTOR: Shuming Liu
OFFICE: SCI 330
PHONE: 338-6289
EMAIL: [email protected]
OFFICE HOURS: TTH 9am 9:25am, 3:25pm 5:00pm
Classroom: BUS 213 Meeting Time: TTH 2:10pm 3:2
Finance 355: Investments
Fall 2015
Instructor: Shuming Liu
QUIZ 1
1
c
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
d
c
16
d
12
e
17
c
c
13
d
18
a
9
b
14
c
19
e
10
b
15
d
20
d
b
16
c
1
d
6
QUIZ PAPER B
11
c
2
c
7
e
12
b
17
d
3
a
8
d
13
c
18
c
4
e
9
c
14
b
19
c
SAN FRANCISCO STATE UNIVERSITY
COLLEGE OF BUSINESS
FIN 355-1: Investments
Fall 2010
INSTRUCTOR: Shuming Liu
OFFICE: SCI 330
PHONE: 338-6289
EMAIL: [email protected]
OFFICE HOURS: T 9am 11am, 3:30pm 4:30pm TH 10am 11am
Classroom: BUS 213 Meeting Time: TTH 1
Chapter
15
McGrawHill/Irwin
Stock Options
Learning Objectives
Give yourself some in-the-money academic
and professional options by understanding:
1. The basics of option contracts and how to obtain
price quotes.
2. The difference between option payoffs an
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 6
Chapter 10 Question 19
LKD Co. has 10 percent coupon bonds with a YTM of 8.6 percent. The current yield on these
bonds is 9.2 percent. How many years do these bonds have left until they
Chapter
6
McGrawHill/Irwin
Common Stock
Valuation
Learning Objectives
Separate yourself from the commoners by having a good
Understanding of these security valuation methods:
1. The basic dividend discount model.
2. The two-stage dividend growth model.
3.
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 1
Chapter 2 Question 22
Youve just opened a margin account with $11,000 at your local brokerage firm. You instruct
your broker to purchase 600 shares of Landon Golf stock, which currently
Finance 355: Investments
Sample Quiz 2
1.
The rate that banks charge each other for overnight loans of $1 million or more is called the
_ rate.
a. institutional
b. financial overnight
c. Federal funds
d. monetary
e. daily
Answer: c.
2.
The Whirlwind Co. j
CH 6
(a) Suppose dividends for Layton's
Pizza Company are projected to
grow at 6% forever. If the discount
rate is 16% and the current dividend
is $2, what is the value of the stock?
(b) Suppose the Titanic Ice Cube Co.'s
dividend grows at a 20% rate for
Finance 355: Investments
Sample Quiz 2
1.
The rate that banks charge each other for overnight loans of $1 million or more is called the
_ rate.
a. institutional
b. financial overnight
c. Federal funds
d. monetary
e. daily
2.
The Whirlwind Co. just paid an
Finance 355: Investments
Fall 2011
Shuming Liu
QUIZ 3
QUIZ PAPER A
1
b
6
d
11
c
16
c
2
d
7
a
12
d
17
a
3
c
8
c
13
b
18
e
4
b
9
e
14
a
19
c
5
a
10
d
15
e
20
d
QUIZ PAPER B
1
d
6
b
11
c
16
c
2
a
7
d
12
a
17
d
3
c
8
c
13
e
18
b
4
e
9
b
14
c
19
a
5
d
10
a
15
Finance 355: Investments
Fall 2013
Instructor: Shuming Liu
QUIZ 1
a
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
b
16
d
12
e
17
c
e
13
d
18
b
9
b
14
e
19
e
a
10
b
15
d
20
d
1
d
6
QUIZ PAPER B
11
b
b
16
a
2
c
7
e
12
b
17
d
3
b
8
d
13
e
18
c
4
e
9
e
14
b
19
c
5
Chapter
5
McGrawHill/Irwin
The Stock Market
Learning Objectives
Take stock in yourself. Make sure you
have a good understanding of:
1. The difference between primary and secondary
stock markets.
2. The workings of the New York Stock Exchange.
3. How NASDA
Finance 355: Investments
Sample Quiz 1
1.
A stock sold for $38.20 at the beginning of the year. The end of year stock price was $40.11.
What was the amount of the annual dividend if the total return for the year was 9.712
percent?
a. $1.50
b. $1.54
c. $1.
Finance 355: Investments
Sample Quiz 1
1.
A stock sold for $38.20 at the beginning of the year. The end of year stock price was $40.11.
What was the amount of the annual dividend if the total return for the year was 9.712
percent?
a. $1.50
b. $1.54
c. $1.
Finance 355: Investments
Fall 2011
Instructor: Shuming Liu
QUIZ 2
QUIZ PAPER A
1
c
6
c
11
a
16
b
2
d
7
e
12
b
17
b
3
d
8
e
13
c
18
b
4
d
9
e
14
b
19
b
5
d
10
b
15
c
20
d
QUIZ PAPER B
1
a
6
c
11
b
16
c
2
b
7
d
12
b
17
e
3
c
8
d
13
b
18
e
4
b
9
d
14
b
19
e
Finance 355: Investments
Fall 2015
Instructor: Shuming Liu
QUIZ 2
QUIZ PAPER A
1
b
6
c
11
e
16
d
2
d
7
e
12
b
17
b
3
b
8
e
13
d
18
b
4
d
9
e
14
b
19
e
5
c
10
b
15
c
20
d
QUIZ PAPER B
1
e
6
b
11
d
16
c
2
b
7
d
12
b
17
e
3
d
8
b
13
b
18
e
4
b
9
d
14
e
19
e
Finance 355: Investments
Fall 2011
Instructor: Shuming Liu
QUIZ 1
1
a
6
QUIZ PAPER A
11
b
2
d
7
b
3
c
8
4
c
5
c
b
16
d
12
e
17
c
a
13
d
18
c
9
b
14
e
19
c
10
b
15
d
20
d
b
16
a
1
d
6
QUIZ PAPER B
11
b
2
c
7
e
12
b
17
d
3
c
8
d
13
a
18
c
4
c
9
e
14
b
19
c
Finance 355: Investments
Sample Quiz 3
1.
There is a 20 percent probability that a particular stock will earn an 18 percent return
and an 80 percent probability that it will earn 13 percent. What is the risk premium
on this stock if the risk-free rate is
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 5
Chapter 9 Question 11
A Treasury bill with 64 days to maturity is quoted at 99.012. What is the bank discount yield,
the bond equivalent yield, and the effective annual return?
ANSWER:
P
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 4
Chapter 6
The current book value per share of Trenton Motors is $11.90 and the required return on the stock is 15
percent. The firm expects earnings per share of $1.40 next year with ann
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 6
Chapter 10 Question 19
LKD Co. has 8 percent coupon bonds with a YTM of 6.8 percent. The current yield on these
bonds is 7.4 percent. How many years do these bonds have left until they m
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 5
Chapter 10 Question 19
LKD Co. has 8 percent coupon bonds with a YTM of 6.8 percent. The current yield on these
bonds is 7.4 percent. How many years do these bonds have left until they m
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Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 9
Chapter 14
You short 25 oil futures contracts at a price of $1.52 per gallon, where each contract represents
42,000 gallons. You initial margin is $6,075 per contract, and the maintenanc
Chapter
13
McGrawHill/Irwin
Performance Evaluation
and Risk Management
Learning Objectives
To get a high evaluation of your investments
performance, make sure you know:
1. How to calculate the three best-known portfolio evaluation
measures.
2. The strengt
Finance 355: Investments
Instructor: Shuming Liu
In-Class Exercise 8
Chapter 12
The risk-free rate is 5.4 percent and the expected return on the market is 11.2 percent. Stock A
has a beta of 1.3. For a given year, stock A returned 14.8 percent while the m
Chapter
12
McGrawHill/Irwin
Return, Risk, and the
Security Market Line
Learning Objectives
Studying some topics will yield an expected
reward. For example, make sure you know:
1. The difference between expected and unexpected
returns.
2. The difference be