Investments BUS2007-01

SKKU Business School

Fall 2018
Noon–1:15 pm on Mondays and 1:30-2:45 pm on Wednesdays
Room 33402

Course Description and Objectives

This is an introductory-level investment finance course. The purpose of this course is to introduce
students to the basic conceptual and quantitative tools that professional and retail investors use in
analyzing securities and improving their investment performance. The topics we cover include
(but are not limited to) the risk-return relationship, security valuation, industry analysis,
technical/chart analysis, portfolio diversification, risk management, and derivatives.

This course is tailored to undergraduate students who have a basic knowledge of statistics,
accounting and financial management. For example, I expect students to be familiar with the
discounted cash flow method before taking this course. Prerequisites are Introduction to Financial
Accounting (BIZ2022) and Financial Management (BUS2006) or their equivalents.

Instructor Information
Prof. Jungwon Suh
Office: BUS33511
Hours: Immediately following class or by appointment
Phone: 02-760-0482
Email: jungwonsuh@skku.edu

Course Materials
The required textbook for this course:
Jordan, Miller & Dolvin, Fundamentals of Investments: Valuation and Management, 8th
Edition. McGraw-Hill International ed., 2018

Finally, students are encouraged, but not required, to purchase a financial calculator, either the
HP-10B or TI BAII Plus. For exams, bring a calculator that can compute X^(1/Y) and log(Z).

Grading Policy
The course grade will be determined as follows:
Class attendance/participation 10%
Online quizzes/HWassignments* 20%
Midterm exam 30%
Final exam 30%
Total 100%

* HW assignments can include “simulation trading” using Kiwoom Securities Inc.’s platform.

As a rule, I do not give a passing grade if a student’s total score is less than half the class median.
(i.e., if the class median is 70, then a student’s total score must exceed 35 to avoid an F.) I do not
respond to students’ emails or messages that contain request to raise their grade. I do not respond
to students’ email or message that contains a request to raise their grade. Please email me to
inquire about your final exam score and ranking after the letter grade has been assigned at the end
of the semester.

1
 Selected Textbook Chapters the Course will Cover
Note: The selected chapters are those from the main textbook, Fundamentals of Investments by Jordan,
Miller and Dolvin (8th ed.).

 Part 1: Introduction

- Ch. 1: A Brief History of Risk and Return

- Ch. 2: Investment Process
- Ch. 3: Overview of Security Types
- Ch. 4: Mutual Funds and Other Investment Companies

 Part 2: Stock Markets

- Ch. 5: The Stock Market

- Ch. 6: Common stock Valuation
- Ch. 7: Stock Price Behavior and Market Efficiency
- Ch. 8: Behavioral Finance and the Psychology of Investing

 Part 3: Interest Rates and Bond Valuation

- Ch. 9: Interest Rates

- Ch. 10: Bond Prices and Yields

 Part 4: Portfolio Management

- Ch. 11: Diversification and Risky Asset Allocation

- Ch. 12: Return, Risk and the Security Market Line
- Ch. 13: Performance Evaluation and Risk Management

 Part 5: Futures and Options

- Ch. 14: Futures Contract

- Ch. 15: Stock Options

 Part 6: Topics in Investments

- Ch. 19: Global Economic Activity and Industry Analysis

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 Course Schedule and Important Dates
This schedule may be subject to change.

# Week Textbook Chapters & Important Dates

1 Sep 3 & 5 Ch3. Overview of Security Types
Ch2. Investment Process
2 Sep 10 & 12 Ch1. A Brief History of Risk and Return
Ch19. Global Economic Activity and Industry Analysis
3 Sep 17 & 19 Ch5. The Stock Market
4 Sep 24 & 26 No class due to Chusok
5 Oct 1 & 3 Ch6. Common Stock Valuation
Oct 3: no class due to National Foundation Day
6 Oct 8 & 10 Ch11. Diversification and Risk Asset Allocation
7 Oct 15 & 17 Ch12. Return, Risk and the Security Market Line
8 Oct 22 & 24 Oct 24 (Wed): Midterm exam (Room TBA)
No class on 22nd
9 Oct 29 & 31 Ch7. Stock Price Behavior and Market Efficiency
10 Nov 5 & 7 Ch8. Behavioral Finance
Special Topic: Technical Analysis
11 Nov 12 & 14 Ch9. Interest Rates
Ch10. Bond Prices and Yields
12 Nov 19 & 21 Ch4. Mutual Funds
13 Nov 26 & 28 Ch13. Performance Evaluation and Risk Management
14 Dec 3 & 5 Ch14. Futures Contract
15 Dec 10 & 12 Ch15. Stock Options
16 Dec 17 Dec 17 (Mon): Final Exam (Room TBA)