Investments (FIN 402)

2021 Spring
Sabancı Business School
Finance(FIN)
3
6
Ali Doruk Günaydın dorukgunaydin@sabanciuniv.edu,
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English
Undergraduate
FIN301 IE303
Formal lecture,Recitation
Interactive
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CONTENT

This course introduces the structure of financial markets and the valuation of financial assets including stocks, bonds, forwards, futures, options and swaps. Among the topics to be covered are: fixed-income investments, yield-to-maturity, duration, yield curves, forward rates, mean-variance framework, portfolio construction and performance analysis, mutual funds and other investment companies, asset pricing models, equity valuation, fundamental and technical analyses, the use of derivatives in risk-management and their pricing.

OBJECTIVE

This course is designed to develop an understanding of the field of investments. Topics include: securities markets; bond and equity valuation; risk-return relationship; diversification; asset pricing models; efficient market hypothesis and behavioral finance.

In this course, students are introduced to analytical and technical skills needed in finance. Throughout the course, ethical aspects of financial relationships, actions and decisions are discussed. This helps students become aware of the many ways in financial decisions have ethical dimensions.

LEARNING OUTCOMES

  • Explain investment environments and types of securities traded in the markets,
  • Understand the pricing and risk management of fixed income securities,
  • Discuss investors? risk preferences and motivation for diversification,
  • Describe the theoretical background for various asset pricing models,
  • Distinguish the efficient and behavioral views of financial markets.

PROGRAMME OUTCOMES


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 3

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 4

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 3

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 4

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 2


1. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems.

2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose.

3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively.

4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose.

5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas.

6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development.

7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility.

8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.


1. Formulate and analyze problems in complex manufacturing and service systems by comprehending and applying the basic tools of industrial engineering such as modeling and optimization, stochastics, statistics.

2. Design and develop appropriate analytical solution strategies for problems in integrated production and service systems involving human capital, materials, information, equipment, and energy.

3. Implement solution strategies on a computer platform for decision-support purposes by employing effective computational and experimental tools.


1. Have an understanding of economics and main functional areas of management

2. Have a basic all-around knowledge in humanities, science, mathematics, and literature

3. Have a basic knowledge of law and ethics, awareness of social and ethical responsibilities

4. Work effectively in teams and environments characterized by people of diverse educational, social and cultural backgrounds

5. Demonstrate proficiency in oral and written communications in English

6. Pursue open minded inquiry and appreciate the importance of research as an input into management practice; thus, a.know how to access, interpret and analyze data and information by using current technologies b.use the results from analyses to make informed decisions

7. Use office softwares for written communication, presentation, and data analysis

8. Demonstrate awareness that business settings present different opportunities and challenges for managers due to environmental/contextual differences that arise in economic, political, cultural, legal-regulatory domains

ASSESSMENT METHODS and CRITERIA

  Percentage (%)
Final 40
Midterm 40
Homework 20

RECOMENDED or REQUIRED READINGS

Textbook

Essentials of Investments, by Zvi Bodie, Alex Kane and Alan J. Marcus, 10th edition, 2016 (McGraw-Hill Irwin)

Investment Science, by David G. Luenberger, 2nd edition, 2013 (Oxford University Press)