BU 473: Investment Management
Spring 2012 Instructor Office Phone E‐Mail Office Hours Monday 7:00 – 9:50 PM Wednesday 4:00 – 6:50 PM Dr. Ning (Tony) Tang Faculty Assistant SBE 3253 519.884.0710 Ext. 2479 ntang@wlu.ca Office Phone Section H: Section J: (P2007) (SBE1210) Caroline Hissa SBE 2201 519.884.0710 Ext. 2059

Monday & Wednesday 11:30 AM – 12:30 PM or by appointment

COURSE DESCRIPTION: This course is designed to help students understand the investment opportunities in the financial markets and the risk‐return relations among securities included in investment portfolios. Securities analysis, portfolio management, and modem portfolio theories are the focus of this course. REQUIRED TEXT: Investment Analysis and Portfolio Management, 1st Canadian Edition, by Reilly, Brown, Hedges, and Chang; Nelson Education, 2010. Other course materials can be downloaded from MyLearningSpace. COMPUTER AND SOFTWARE: Students are required to bring laptop computers to some of the lectures (at least one laptop per student group). Excel 2007 or higher version is required. Sessions that require the use of computers are indicated in Tentative Class Schedule on page 4. GRADING SCHEME: Example 2 Example 1 Mandatory Midterm Exam * 0.4(90% ‐ Optional) 0.4(90%‐45%)=18% 0.4(90%‐5%)=34% Comprehensive Final Exam 0.6(90% ‐ Optional) 0.6(90%‐45%)=27% 0.6(90%‐5%)=51% Portfolio Analysis Project 10% 10% 10% Optional Group Projects Investment Simulation 12% 12% 0% Security Analysis 15% 15% 0% Individual Choices (Optional) BBG Analytics Certification ** 3% 3% 0% Attendance 5% 5% 5% 100% 100% 100% * There is no deferred midterm. For students who cannot write the midterm exam, the weight of the midterm will be added to the final exam.

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** Take the BBG training course with PRISM Lab and pass the exam before July 20th (please see registration information at http://www.prismresources.ca/bloomberg). Students who obtained BBG Analytics Certification before this term should register for the Advance BBG Analytics Certification training course. GROUP PROJECTS: Students will form groups of maximum of 4 to complete the following term projects (same group for multiple projects). To join a group, students can log in to MLS and self‐enrol to a group. Groups on MLS for self‐enrolment are created for different combinations of projects. Please select group carefully before you enrol. Alternatively, students can form their own group, decide on the projects to work on, and let the instructor enrol the members on MLS. Group may be formed across sections. IMPORTANT: Changing group in the middle of the term is not allowed. I expect the students in each group to participate and share the assignment burden equally. Any student who fails to fully participate and co‐operate with the group members will be assigned only one‐half of the mark earned by the group. 1. Investment Simulation (Optional) Students will partake in the simulation on a voluntary basis between May 14th and July 13th. In this simulation, each student group will manage a $1 million dollar investment as a fund manager. Each participating group should go to http://rpm.rotman.utoronto.ca/RPM_Payment/ to register one standard account ($35). Your textbook comes with a $10 discount. You will need the following information to register your account. Class Code: WLUBU473Spring2012 Class Password: WLUBU473Spring2012 Discount Code: Please email me to request your discount code  Please see the RPM Quick Start Guide posted on MLS for detailed instructions on how to open account and install software. In case of technical difficulties, please contact RPM technical support at rpm@rotman.utoronto.ca. Students can also use Prism lab computers to log into RPM account.  Register your account before May 14th to avoid penalty marks (0.5/10 per day).  The objective of the simulation is to outperform the market based on holding period return (HPR). o Benchmark: S&P 500 o Holding period: May 14th – July 13th  An account is considered actively managed if the following criteria are satisfied. o Minimum # of trades: 1 trade per group member per trading day o Average daily cash or near cash position: less than 10% o No single position exceeds 20% of the market value of the account for more than 2 trading days.  Grading o For actively managed accounts  Outperform the market (Portfolio HPR > S&P500 HPR): 10/10  Underperform the market (Portfolio HPR