UNIVERSITAS INDONESIA : FAKULTAS EKONOMI & BISNIS DEPARTEMEN AKUNTANSI EKONOM DAN BISNIS | PROGRAM STUDI S1 SYLLABUS INVESTASI DAN PASAR MODAL (INVESTMENT AND CAPITAL MARKET} ECAU609119 (ODD SEMESTER 2017/2018 Nama Pengajar ‘Alamat E-mail Darminto- A darminto@ui.ac.id Budi Frensidy / Rahman Untung Budiman -B | Rachman.untung@ul.ac.id / F He frensidy@gmail.com Dwi Astuti Rosmianingrum = C ‘miatojkni@yahoo.com ‘Gede Harja Wasistha / Indah Melati - D wasistha@ul.ac.id / ‘Arman Hendiyanto / Helen Riyani Tanzil - E ‘arman@kap-arman.com / helen_tanzil@acehardware.co.id Sidharta Utama / Catur Sasongko - F Sidharta.utama@ui.ac.id / [ 2 ae catur_sasongko76@yahoo.com Edward Tanujaya- 6 Edward_tanujaya@ yahoo.com Subject Code ECAU 609119 Et i i | Subject Title Investment and Capital Market Hi Credit Value 3 7 Level ae = a Pre-requisite/ Introduction to Financial Management Z A Co-requisite/ Exclusion Role and Purposes | This subject contributes to the achievement of the outcomes of bachelor program by enabling students to apply technical competence in Finance. Specifically, the subject enables students to understand the unique nature of financial institutionsand their role in the financial system; and discuss basic investment analysis for several types of investment products available in the capital market. Subject Learning | Upon completion of the subject, students will be able to: Outcomes ‘2. Understand the unique nature of financial institutions and their role in the financial system b. Explain core concepts in finance, including risk, return, risk premium, risk aversion, efficient diversification, capital asset pricing and arbitrage pricing theory, and the efficient market hypothesis.‘Compute mean, variance and covariance and the composition of the optimal risky portfolio Explain basic investment analysis for several products available in the capital market, including bonds, equity and derivative securities Explain income, asset-based, and market valuation approaches used for investment decisions Describe how real estate invest ment objectives are set, how the features of real estate are analyzed, what determines real estate value and valuation techniques commonly used to estimate the market value of real estate. Subject Synopsis/ Indicative Syllabus Week # ‘Topic to "Reading Materials 1 Investments: Background and Issues ‘© Real Assets versus Financial Assets ‘©The Investment Process * The Players * The Money Market © The Bond Market © The Equity Market The Derivative Market © _ Stock and Bond Market Indexes ‘* Financial Markets and the Economy Asset Classes and Financial Instruments a Securities Markets ‘How Firms Issue Securities ©. Privately Held Firms © Publicly Traded Companies © Shelf Registration © Initial Public Offerings + How Securities Are Traded © Types of Markets © Types of Orders © Trading Mechanisms * Margin Trading Short Sales ‘© Types of investment Companies © Mutual Funds ‘© Costs of Investing in Mutual Funds ‘© Exchange-Traded Funds ‘Mutual Funds & Other Investment Companies ‘Mutual Fund Investment Performance a 2 Bodie Ch. 1 and Bodie Ch. 3 and | 4 3 Risk and Return: Past and Prologue Rates of Return Risk and Return Premiums The Historical Record Inflation and Real Rates of Return Asset Allocation across Risky and Risk-Free | be Bodie Ch. 5 and 6 aPortfolios Passive Strategies and Capital Market Line Efficient Diversification ‘* Diversification and Portfolio Risk ‘© Asset Allocation with Two Risky Assets ‘© The Optimal Risky Portfolio with a Risk-Free Asset ‘* Efficient Diversification with Many Risky Assets + ASingle-index Stock Model ‘© Risk of Long-Term Investments * Capital Asset Pricing and Arbitrage Pricing ‘Theory The Capital Asset Pricing Model (CAPM) The CAPM and Index Models ‘The CAPM and the Real World Multifactor Models and the CAPM Arbitrage Pricing Theory (APT) Bodie Ch. 7 ‘The Efficient Market Hypothesis © Random Walk and the Efficient Market Hypothesis (EMH) ‘= Implications of the EMH ‘© Are Markets Efficient? EMH Tests © Mutual Fund and Analyst Performance Behavioral Finance and Technical Analysis © The Behavioral Critique Support and Resistance Level Bodie Ch. 8 and 9 Bond Prices and Yields Bond Characteristics Bond Pricing, Bond Yields Bond Prices Over Time Default Risk and Bond Pricing The Yield Curve Bodie Ch. 10 ‘Managing Bond Portfolios Interest rate Risk ‘© Passive Bond Management = Convexity ‘© Active Bond Management Bodie Ch. 11 Group Assignment ‘Write a paper maximum 15 pages (font 11 Arial paragraph 1,5). Each group should have different topics. The topics may cover, but not limited to, the following list: ‘© Pension Funds in Indonesia vs in Other Countries or the History of Pension Funds in Indonesia Submitted in Mid-Semester Exam