Vous êtes sur la page 1sur 9

Lahore University of Management Sciences

COURSE CODE COURSE TITLE


FIN 353 - Investments
Fall 2014
Instructor Dr. Zaghum Umar
Room No. SDS-324
!""#ce $ours %ues&a'( 14(00 ) 15(00hrs
*ma#l +aghum.umar,lums.e&u.-.
%ele-hone 042-35/0-0434
Secretar'1%2 Fa#sal Sha"#3 4han1%2
%2 !""#ce $ours %2
5ourse UR6 7#" an'8 sura9.lums.e&u.-.
COURSE BASICS
5re&#t $ours 3
6ecture7s8 N:r o" 6ec7s8 ;er
<ee.
2 Durat#on =5 >#nutes
Rec#tat#on16a: 7-er
?ee.8
N:r o" 6ec7s8 ;er
<ee.
Durat#on
%utor#al 7-er ?ee.8 N:r o" 6ec7s8 ;er
<ee.
Durat#on
COURSE DISTRIBUTION
5ore -
*lect#ve *lect#ve
!-en "or Stu&ent
5ategor'
@un#or1Sen#or
5lose "or Stu&ent
5ategor'
COURSE DESCRITION
2n #ntro&uctor' course #n the anal's#s o" #nvestments an& -ort"ol#o management. %he course eAam#nes var#ous
#nvestment o--ortun#t#es ava#la:le #n mo&ern "#nanc#al mar.etsB "unct#on#ng o" secur#t#es mar.etsB
&#vers#"#cat#on conce-tsB asset -r#c#ng mo&elsB anal't#cal techn#3ues "or valuat#on o" stoc.s an& "#Ae& #ncome
secur#t#es us#ng "un&amental an& techn#cal anal's#sB -ort"ol#o construct#on an& evaluat#onB an& #ntro&uct#on to
&er#vat#ve secur#t#es. 5entral to the #nvestment select#on an& management -rocess #s the not#on o" -ort"ol#o
&#vers#"#cat#on. <e ?#ll cons#&er ho? #nvestors allocate the#r "un&s :' "orm#ng an& manag#ng -ort"ol#os
conta#n#ng stoc.sB :on&sB mutual "un&sB an& alternat#ve #nvestment -ro&ucts. Stu&ents are also #ntro&uce& to
the ma9or -ort"ol#o management strateg#es an& #nvestment st'les -urse& :' -ro"ess#onal #nvestors. 2n
#nvestment game ?#ll :e -la'e& to g#ve stu&ents a :etter un&erstan&#ng o" tra&#ng strateg#es an& -ort"ol#o
management. %he course "ocus #s on a--l#cat#on o" theor' to the -ract#ce o" #nvestment management.

Lahore University of Management Sciences
COURSE RERE!UISITE"S#
;r#nc#-les o" 5or-orate F#nance
5!URS* 6*2RNINC !U%5!>*S 756!8
U$on s%ccessf%& com$&etion of the co%rse' st%(ents sho%&( )e a)&e to*
1. Demonstrate un&erstan&#ng o" the nature an& o-erat#ons o" ca-#tal mar.ets an& tra&#ng o"
secur#t#es an& other #nvestment veh#cles.
2. Demonstrate un&erstan&#ng o" the theoret#cal un&er-#nn#ngs o" #nvestment anal's#s an&
-ort"ol#o conce-ts ?#th#n the conteAt o" mo&ern -ort"ol#o theor' an& #ts eAtens#ons.
3. Demonstrate un&erstan&#ng o" -roce&ures #nvolve& #n anal'+#ng #nvestment alternat#ves
un&er con&#t#ons o" uncerta#n outcomes.
4. Demonstrate a--l#cat#on o" em-#r#cal ev#&enceB theoret#cal constructsB an& #ns#ghts "rom
-ract#ce to manage #nvestments.
5. Demonstrate un&erstan&#ng o" the alternat#ve metho&olog#es to evaluate -ort"ol#o
-er"ormance.
/. Demonstrate .no?le&ge o" &er#vat#ve mar.ets an& #nstruments ?#th s-ec#al attent#on to
the#r a--l#cat#on #n manag#ng -ort"ol#o r#s..
=. ;resent an& &e"en& the#r anal's#s e""ect#vel'B :oth #n oral an& ?r#tten "ormsB ?h#le
?or.#ng #n teams as ?ell as #n&e-en&entl'. 7Ceneral 6earn#ng Coal8
UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES


General Learning Goals & Obje!i"es
Goal # $E%e!i"e &ri!!en an' Oral Co(()nia!ion
Obje!i"e* Students will demonstrate efective writing and oral communication
skills
Goal + $E!,ial Un'ers!an'ing an' Reasoning
Obje!i"e* Students will demonstrate that they are able to identify and address
ethical issues in an organizational context.
Goal - $ Anal.!ial T,in/ing an' Proble( Sol"ing S/ills
Obje!i"e* Students will demonstrate that they are able to identify key problems
and generate viable solutions.
Goal 0 $ A11lia!ion o2 In2or(a!ion Te,nolog.
Obje!i"e* Students will demonstrate that they are able to use current
technologies in business and management context.
Goal 3 $ Tea(4or/ in Di"erse an' M)l!i)l!)ral En"iron(en!s
Obje!i"e: Students will demonstrate that they are able to work efectively in
diverse environments.
Goal 5 $ Un'ers!an'ing Organi6a!ional Eos.s!e(s
Obje!i"e* Students will demonstrate that they have an understanding of
Economic, olitical, !egulatory, "egal, #echnological, and Social environment of
organizations.
Major S1ei7 Learning Goals & Obje!i"es

Lahore University of Management Sciences
Goal 8 9a: $ Progra( S1ei7 ;no4le'ge an' Un'ers!an'ing
Obje!i"e* Students will demonstrate knowledge of key business disciplines and
how they interact including application to real world situations.
Goal 8 9b: $ Un'ers!an'ing !,e <siene= be,in' !,e 'eision>(a/ing
1roess 92or MGS Majors:
Obje!i"e* Students will demonstrate ability to analyze a business problem,
design and apply appropriate decision$support tools, interpret results and make
meaningful recommendations to support the decision$maker
In(icate )e&o+ ho+ the co%rse &earning o),ectives s$ecifica&&y re&ate to any $rogram &earning goa&s an(
o),ectives-
rogram Learning .oa&s an(
O),ectives
Co%rse Learning O),ectives Co%rse Assessment Item
Coal 1 )*""ect#ve <r#tten an& !ral
5ommun#cat#on
Stu&ents ?#ll :e g#ven a num:er
o--ortun#t#es to &emonstrate the#r
a:#l#t' to commun#cate e""ect#vel'
"CLO /0#
5;B ;ro9ect ?r#te u- D
-resentat#onB *Aams
Coal 2 )*th#cal Un&erstan&#ng an&
Reason#ng
Coal 3 ) 2nal't#cal %h#n.#ng an&
;ro:lem Solv#ng S.#lls
2nal't#cal %h#n.#ng an& ;ro:lem
Solv#ng S.#lls are an essent#al
com-onent o" the course "CLO 12
0#
5;B Eu#++es an& eAams
Coal 4 ) 2--l#cat#on o"
In"ormat#on %echnolog'
2--l#cat#on o" #n"ormat#on
technolog' #n "or ass#gnmentsB
-ro9ects
;ro9ect ?r#te u- D -resentat#on
Coal 5 ) %eam?or. #n D#verse an&
>ult#cultural *nv#ronments
Stu&ents ?or. #n grou-s "or grou-
-ro9ects
Crou- -ro9ect
Coal / ) Un&erstan&#ng
!rgan#+at#onal *cos'stems
Develo- stu&entFs un&erstan&#ng o"
the #nteract#on o" m#cro 7"#rm
s-ec#"#c8 var#a:les ?#th the macro
7secur#t#es mar.etsB #n&ustr'B an&
the econom'8 var#a:les
5;B ;ro9ect ?r#te u- D
-resentat#onB *AamsB 3u#++es
Coal = 7a8 ) ;rogram S-ec#"#c
4no?le&ge an& Un&erstan&#ng
2 &eta#le& #ntro&uct#on to the
var#ous o" to-#cs #n Investments
"CLO 123#
5;B 3u#++es an& eAams
Coal = 7:8 ) Un&erstan&#ng the
Gsc#enceH :eh#n& the &ec#s#on-
ma.#ng -rocess
.RADIN. BREA4U AND OLIC5
CLASS ROOM OLIC5
Atten(ence an( C&ass artici$ation* 167-
Stu&ents are eA-ecte& to atten& all classes. I" 'ou are not -resent at the :eg#nn#ng o" a class or leave class

Lahore University of Management Sciences
&ur#ng the sess#onB ?#thout #nstructorFs -r#or -erm#ss#onB 'ou ?#ll :e cons#&ere& a:sent "or the &a'.
Stu&ents must rev#e? the ass#gne& mater#als #n a&vance o" the class #n or&er to contr#:ute mean#ng"ull' to class
&#scuss#ons. 2 s#gn#"#cant -ort#on o" the course gra&e &e-en&s on the 3ual#t' an& level o" 'our #nvolvement an&
#n-ut #n class &#scuss#ons.
OLIC5 RE.ARDIN. E8AMINAIONS !UI99ES AND OT:ER .RADIN. INSTRUMENTS-
There is a ;ero to&erance $o&icy " 9T# for any %n(esira)&e )ehavior or %n(eserving attem$t to im$rove
yo%r gra(es (%ring the <%i;;es an( e=aminations- S%ch action can res%&t in cance&&ing yo%r e=amination
$a$er- It may a&so res%&t in (isci$&inary actions )y Disci$&inary Committee-
&ease caref%&&y +eigh in yo%r action>s costs an( )enefits an( a&+ays sho+ an ethica& an( mora&
(e$ortment an( )ehavior a&+ays-
!%i;"s# an( Assignments* ?67-
Several unannounce& 3u#++es ?#ll :e g#ven on the ass#gne& mater#al &ur#ng the term. No ma.e-u- 3u#++es ?#ll
:e g#ven. :o+ever' the &o+est <%i; gra(e inc&%(ing a ;ero for a misse( <%i; +i&& )e (isregar(e(- No
shar#ng o" calculatorsB or an' hel- sheet :e allo?e&.
%here ?#ll :e several gra&e& ass#gnments &ur#ng the term to re#n"orce "#nanc#al conce-ts an& to encourage
usage o" s-rea&sheets such as *Acel #n -er"orm#ng "#nanc#al anal's#s. %he "ormat an& other re3u#rements ?#ll
:e s-ec#"#e& :' the #nstructor. 2ll ass#gnments must :e su:m#tte& on the &ue &ate. 6ate su:m#ss#ons ?#ll not :e
acce-te&. In a&&#t#onB non-gra&e& en&-o"-cha-ter -ro:lems ma' :e ass#gne& to st#mulate class &#scuss#ons.
Mi(term E=amination* ?67
%he eAam#nat#on coul& :e m#A o" >5E short eAerc#se an& short eA-lanat#ons.
There is a ;ero to&erance for any %n(esira)&e )ehavior to %n(eserving attem$t to im$rove yo%r gra(es
(%ring the <%i;;es an( e=aminations-
.ro%$ ro,ects ?@7( Stu&ents are re3u#re& to "orm teams o" 3-4 stu&ents 7&e-en&#ng on class s#+e8 :' sess#on
4 "or grou- tas.s. "i# Sector Re$ort( *ach grou- ?#ll select an #n&ustr' sector1su:sector an& -er"orm #n&ustr'
an& "un&amental anal's#s o" at least 2 lea&#ng com-an#es #n that sector. %he sectors "or the anal's#s must :e
a--rove& :' the #nstructor. %he sector anal's#s re-orts ?#ll :e &ue at the :eg#nn#ng o" the 2=
th
class sess#on.
6ate su:m#ss#ons ?#ll not :e acce-te&. 2 -eer evaluat#on "orm ?#ll :e -rov#&e& to evaluate contr#:ut#on o" each
grou- mem:er. Iour -eer evaluat#on ?#ll #m-act 'our gra&e on the -ro9ect re-ort. "ii# Investment .ame* *ach
grou- ?#ll :e entruste& ?#th the same amount o" #n#t#al #nvestment an& ?#ll :e as.e& to manage a -ort"ol#o o"
stoc.s on :ehal" o" a cl#ent "or a certa#n amount o" t#me. ;ort"ol#o -er"ormance ?#ll :e evaluate& on the :as#s o"
total return at the en& o" the game. "iii# Money Masters Re$ort( >ult#-le teams ?#ll :e ass#gne& an
#nvestment GguruH "rom the >one' >asters to -re-are a :r#e" ?r#t-u- an& :e rea&' "or a -resentat#on on the
ass#gne& -erson as -er the class sche&ule. %he -resentat#on shoul& "ocus on the #nvestment strateg#esB
#nvestment #ns#ghts 7Dos an& DonFts o" #nvestments8B #nclu&#ng .e' -ersonal tra#ts. Stu&ents are encourage& to
use the Internet to o:ta#n more current #n"ormat#on.
AINAL E8AMINATION* ?@7-
%he eAam#nat#on coul& :e m#A o" >5E short eAerc#se an& short eA-lanat#ons. Stu&ents ma' also eA-ect a
3uest#on or t?o "rom the ass#gne& re-ort or a case or a s#tuat#on anal's#s.

Lahore University of Management Sciences
Ca&c%&ator Re<%irement* Iou ?#ll nee& a "#nanc#al calculator ca-a:le o" -er"orm#ng -resent value1"uture
value "unct#ons. For eAam-leB %eAas Instrument 2 II meets these cr#ter#a. >an' other :ran&s are e3uall'
su#ta:le "or th#s course.
E8AMINATION DETAIL
>#&term
*Aam
Ies1No( 5es
5om:#ne Se-arate( 2 NBA
Durat#on( ? :o%rs
;re"erre& Date( CeeD E
*Aam S-ec#"#cat#ons(
F#nal
*Aam
Ies1No( 5es
5om:#ne Se-arate( NBA
Durat#on( ? :o%rs
*Aam S-ec#"#cat#ons(
COURSE OFERFIECBSC:EDULE
6ecture1 >o&ule %o-#cs Recommen&e&
Rea&#ngs
!:9ect#ves1
2--l#cat#on
Mo(%&e 1* Overvie+ of Investment Environment an( Management rocess
Session 1 J Investments(
ac.groun&s an& Issues
J 2sset 5lasses an&
F#nanc#al Instruments
J 4> 5h 1B2
!verv#e? o" #nvestment
env#ronmentB t'-e o"
"#nanc#al mar.etsB an&
#ntro&uct#on to the
-ort"ol#o construct#on
-rocess.
Session ? J 2sset 5lasses an&
F#nanc#al Instruments(
Stoc. an& on& >ar.et
In&eAes
J 4> 5h 2
*Aam#ne the var#ous
asset classesB
#nstrumentsB an&
un&erstan& the use an&
construct#on o" mar.et
#n&eAes.
Session G J Funct#on#ng o" Secur#t'
>ar.ets an& %ra&#ng
>echan#sms
J 4> 5h 3
Rev#e? the "unct#on#ng
o" "#nanc#al mar.ets an&
#ts .e' -la'ers.
Session H J Funct#on#ng o" Secur#t'
>ar.ets an& %ra&#ng
>echan#sms
J 4> 5h 3
Un&erstan& the tra&#ng
-ract#ces #n stoc.
eAchanges an&
mechan#cs o" :u'#ng on
marg#n an& short sell#ng.

Lahore University of Management Sciences
Session @ J >utual Fun&s an&
!ther Investment
5om-an#es
J 4> 5h 4 *Aam#ne the :ene"#ts o"
#nvest#ng through
#nvestment com-an#esB
class#"#cat#on o" mutual
"un&s :' o:9ect#ves an&
st'lesB "ee structuresB an&
-er"ormance.
Session 3 J >utual Fun&s an&
!ther Investment
5om-an#es ) ;a.#stan#
5onteAt
J %he Investment
>anagement ;rocess
J 4> 5h 4
J 4> 5h 22
Rev#e? the mutual "un&s
#n&ustr' o" ;a.#stan.
!verv#e? o" the -ort"ol#o
management -rocess.
Session 0 J %he Investment
>anagement ;rocess
J 4> 5h 22 6earn to &evelo-
Investment ;ol#c'
Statement 7I;S8 "or
#n&#v#&ual an&
#nst#tut#onal #nvestors.
Session E J >acroeconom#c an&
In&ustr' 2nal's#s
J 4> 5h 12 2nal'+e the e""ects o"
macroeconom#c an&
#n&ustr' "actors on "#rm
-er"ormance an& #n&ustr'
earn#ng -ros-ects over
t#me.
Session I J >acroeconom#c an&
In&ustr' 2nal's#s )
2--l#cat#ons o"
Fun&amental 2nal's#s
J 4> 5h 12 Un&erstan& the relevance
o" macroeconom#c an&
#n&ustr' "actors #n
"un&amental anal's#s )
the %o--Do?n a--roach.
Session 16 J *3u#t' Kaluat#on )
D#scounte& 5ash Flo?
>o&els
J 4> 5h 13 2--l' &#scounte& cash
"lo? mo&els an&
alternat#ve a--roaches to
value secur#t#es.
Session 11 J *3u#t' Kaluat#on )
!ther Kaluat#on
2--roaches
J 4> 5h 13 *Aam#ne relat#ve an&
other secur#t' valuat#on
metho&olog#es.
Session 1? J R#s. an& Return( ;ast
an& ;rologue
J *""#c#ent
D#vers#"#cat#on
J 4> 5h 5B/ Rev#e? h#stor#cal r#s.-
return relat#onsh#-B
mo&ern -ort"ol#o theor'B
an& est#mat#on o" r#s.
measures.
Session 1G J D#vers#"#cat#on an&
;ort"ol#o R#s.
J 4> 5h / Develo- un&erstan&#ng
to construct o-t#mal

Lahore University of Management Sciences
J S#ngle In&eA >o&el an&
eta *st#mat#on
-ort"ol#osB an& use #n&eA
mo&els to anal'+e r#s.
character#st#cs o"
secur#t#es an& -ort"ol#os.
Session 1H J 5a-#tal 2sset ;r#c#ng
an& 2r:#trage ;r#c#ng
%heor'
J 4> 5h = Un&erstan& the
#m-l#cat#ons o" ca-#tal
mar.et theor' "or asset
-r#c#ngB use secur#t'
mar.et l#neB 2;% an&
mult#"actor mo&els to
#&ent#"' m#s-r#ce&
secur#t#es.
Session 1@ J %he *""#c#ent >ar.et
$'-othes#s 7*>$8
J 4> 5h 0 Rev#e? em-#r#cal
ev#&ence that su--orts
an& con"l#cts ?#th the
e""#c#ent mar.et
h'-othes#s.
Session 13 J *>$ Im-l#cat#ons "or
;ort"ol#o Strateg#es
J 4> 5h 0 *valuate the #m-l#cat#ons
o" *>$ "or -ort"ol#o
management strateg#es.
Session 10 J ehav#oral F#nance an&
%echn#cal 2nal's#s
J 4> 5h L Rev#e? the :ehav#oral
"#nance cr#t#3ue o"
stan&ar& "#nance an& #ts
relevance "or
#nvestments.
Session 1E J %echn#cal 2nal's#s )
>omentum %ra&#ng
J 4> 5h L !verv#e? o" techn#cal
anal's#s tools an&
mechan#cs o" momentum
tra&#ng.
Session 1I J on& ;r#ces an& I#el&s J 4> 5h 10 Develo- un&erstan&#ng
o" the :on& mar.etsB
-r#c#ng an& '#el&
&eterm#nat#onB an& ho?
&#""erent :on& "eatures
#m-act :on& '#el&s.
Session ?6 J >anag#ng on&
;ort"ol#os
J 4> 5h 11 2nal'+e :on& "eatures
#m-act#ng -r#ce
sens#t#v#t' to #nterest
rates us#ng &urat#on an&
conveA#t' measures.
Session ?1 J >anag#ng on&
;ort"ol#os
J 4> 5h 11 *valuate act#ve versus
-ass#ve :on& -ort"ol#o
strateg#es an&
#mmun#+at#on "or var#ous
#nvestment hor#+ons.

Lahore University of Management Sciences
Session ?? J ;ort"ol#o ;er"ormance
*valuat#on
J 4> 5h 10 Un&erstan& var#ous r#s.-
a&9uste& measures to
evaluate -er"ormance
an& &ecom-ose -ort"ol#o
return #nto com-onents
attr#:uta:le to asset
allocat#on an& secur#t'
select#on.
Session ?G J Clo:al#+at#on an&
Internat#onal Invest#ng
J 4> 5h 1L *Aam#ne the :ene"#ts an&
r#s.s o" #nternat#onal
-ort"ol#o #nvestments
?#th s-ec#al re"erence to
emerg#ng mar.ets.
Session ?H J !verv#e? o" !-t#ons
>ar.ets
J 4> 5h 15 !verv#e? o" the o-t#ons
mar.et an& the#r usage #n
chang#ng the -ort"ol#o
r#s. -ro"#le.
Session ?@ J Futures >ar.ets an&
R#s. >anagement
J 4> 5h 1= Un&erstan& the use o"
&er#vat#ves #n manag#ng
-ort"ol#o r#s..
Session ?3 ;resentat#ons
Session ?0
Session ?E
J F#nal *Aam#nat#on 75om-rehens#ve8
TE8TBOO4"S#BSULEMENTAR5 READIN.S
Re<%ire( Te=t*
o&#eB 4aneB an& >arcusB Essentials of InvestmentsB L
th
*&#t#onB >cCra? $#llB 2013. "B4M#
J Selecte& rea&#ngs "rom The Money Masters an& The New Money Masters :' @ohn %ra#nB 1L00 an& 1L0LB
res-ect#vel'.
Other Reference BooDs*
J Re#ll'B Fran. an& ro?nB 4.B Investment Analysis and Portfolio ManagementB 0
th
*&#t#onB %homson South-
<esternB 200/. 7 RB - selecte& cha-ters onl'8
J >al.#elB urtonB A Random Walk Down Wall Street: The Time Tested Strategy for Successful InvestingB 10
th
*&#t#onB <. <. Norton D 5om-an'B 2012.
S%$$&ementary Rea(ings*
J Stu&ents are encourage& to rea& "#nanc#al -u:l#cat#ons such as %he <all Street @ournalB F#nanc#al %#mesM
us#ness Recor&er to sta' a:reast o" &evelo-ments relate& to th#s course.
J Su--lemental rea&#ngs #n the "orm o" notes or art#cles on #nvestments ?#th -ract#cal an& to-#cal a--l#cat#ons
ma' :e -oste& on the course ?e:s#te "rom t#me to t#me.

Lahore University of Management Sciences