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Extensive Professional Knowledge On Finance Extensive Professional Knowledge On Finance Extensive Professional
Extensive Professional Knowledge On Finance Extensive Professional Knowledge On Finance Extensive Professional
COURSE SYLLABUS
INVESTMENT
For Finance and Banking major
A. GENERAL INFORMATION
1. Course: Investment
2. Level: third - year students, full-time mode of training
3. Credit hours: 4 credits (60 periods)
4. Time allocation:
- In classroom: 60 periods
- Others: Reading materials, homework, personal and group assignments that take at least
twice more than the in-class working time.
5. Prerequisites:
Financial Management
Advanced financial management
6. Course description:
The course contain 6 chapters providing insights into modern investment theory, valuation and
portfolio management of stocks, bonds and options. Students are provided with the knowledge and
tools to measure the investment risk and the models of determining the required return based on risk
measurement of the investment; Practical synthesis of financial management knowledge, financial
market principles for valuation of stocks, bonds and options; knowledge of performance evaluation
of portfolio.
The course goals satisfy the expected learning outcomes of the program as listed below:
Level 1 Level 2
Level of
Goals Descriptions Prog. ELOs
competence
Provide students with foundation
conceptual framework of investment.
G1 4 B1, B2, B3
Program’s
CLOs Descriptions
ELO
G1.1 Understand basic theories of portfolio B1, B2
Explain the theory and model for valuating the required
G1.2,
return, including: single factor model, CAPM theory, APT B1, B2, B3
G2
model, multi-factor model.
G1.3, Practice in investing stocks and and applying models of
B1, C1, C3
G2 valuation
G1.4, Explain interest rate risk in bond investment, indicators of
B1, C3
G2 interest rate risk and bond investment strategy.
G1.5, Understand and explain the characteristics of stock option B1, B2, C3
G2 and option market
G1.6, Explain option investment strategies and basic principles in B1, B2, B3,
G2 pricing options C3
8. Course assessment:
8.1. Examination and assessment of proficiency
Weight
Individual mini test 10%
Assignment 10%
Mid-term exam 20%
Final exam 60%
Total 100%
Evaluation methods:
Group assignment:
o Working in groups of 3- 4 students.
o Practice in conducting and evaluating an investment portfolio
o Mid-term exam: Closed personal multiple-choice test. Using laptop and electronic
equipment is not allowed. The exam consists of 40 questions with 5 options for each.
Exam format: 40% critical thinking and theory, 60% problem solving. Exam structure:
20% easy, 60% medium, 20% difficult.
o Questions cover 3 first chapters with a ratio equivalent to number of periods of chapter
to total number of periods.
o 0.25 points for each correct answer.
o Duration: 60 minutes
-
Criteria Weight
Problem solving and reasoning 90%
Writing style and format 10%
- Final Exam:
o Closed personal written exam. Using laptop and electronic equipment is not allowed.
The mid-term exam is to assess knowledge and professional skills of students after
finishing the first three chapters. The exam questions cover the content in all chapters,
including difficult questions (20%) to evaluate critical thinking, analyzing and
generalizing skills. Duration is 60 minutes
- Reference materials
B. COURSE CONTENT
Chapter 5: Options
Expected learning outcomes: After studing, students can
- Explain chrateristics of options and option market.
- Calculate the return in different positions.
- Construct option strategies to adjust return and risk
- Explain factors that affect option price.
- Valuating option price by Two-Stage Approach
- Valuating option price by Black-Scholes model.
- Explain the put-call parity.
- Constructing hedge portfolios
Detail content:
5.1. Charateristics of option caontract
5.2. Option investment strategy
5.3. Option pricing