UNIVERSITY OF CALIFORNIA, RIVERSIDE

ECON 135 - THE STOCK MARKET

Instructor: Christian Gunadi

Lecture: Bourns Hall 118, MW 5:10 p.m. - 6:30 p.m.
Office: 3110 Sproul Hall
Office Hours: M 1:30 - 3:30 p.m
E-mail: christian.gunadi@email.ucr.edu

Course Objectives: This is an introductory course in investments. The objective of this course is to introduce
students to the fundamental elements of security analysis including, but not limited to financial markets and instruments;
stock, bond, and derivative valuation; and performance evaluation. By the end of the course, students should be able to
independently analyze security markets and understand the basic valuation techniques. In acquiring these new skills,
students should be able to use them to make investment decisions.

Textbooks: Textbooks in this course will be completely optional, and the instructor will provide students with
thorough notes on all the materials for the course. The notes will closely follow parts of the following texts:
Reilly, F.K., and Brown, K.C. (2011). Investment Analysis and Portfolio Management. 10th ed. Cengage
Learning. ISBN: 978-0538482387.
Hull, C.J. (2014). Options, Futures, and Other Derivatives. 9th ed. Prentice Hall. ISBN: 978-0133456318.

Prerequisites: ECON 002 and ECON 003.

Course Outline:
Part 1: Introduction
Part 2: Economics of Asset Pricing
Part 3: Fundamental Analysis and the Stock Market
Part 4: Derivatives (Options, Futures)
Part 5: Swaps

Grading:

Discussion section Attendance.............10%

Midterm exam I (10/25/2017)................................30%
Midterm exam II (11/22/2017)...............................30%
Final exam (12/09/2017).........................................30%

While attendance is not mandatory, students are STRONGLY encouraged to attend every class in order to reap the
most benefit from the course. The date of the midterms are tentatively noted above. The final examination will be held
on Saturday, December 9th from 11:30 a.m. - 2:30 p.m. No make-up exams will be available. Exceptions MAY be
made only under serious circumstances such as serious illness. If you miss a midterm, the final exam will include the
weight of the missed midterm. If you miss the final, your second midterm will include the weight of the final.

Academic Honesty: Cheating, fabrication, plagiarism, or other forms of academic dishonesty are violations of
university values and policies.

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Disclaimer: During the course, various examples may be provided and opinions may be expressed concerning indi-
vidual stocks, options and other investment vehicles. These should not be viewed as purchase or sale recommendations.
Such decisions depend on the individual purchasers financial circumstances, risk tolerance and so forth, and outcomes
are always subject to changing and potentially adverse circumstances. The use of examples is intended to demonstrate a
variety of analytical approaches that will help each student to think analytically and understand the issues involved in
making investment decisions.