Investments & Derivatives – BUSI 538

CG • Section 8WK • 11/08/2019 to 04/16/2020 • Modified 07/28/2020

Course Description

This course explores the framework from which a company makes investment decisions, provides a foundation for the study of derivative products, and how companies may effectively use investments and derivatives to make wise financial decisions.

Prerequisites

Financial Accounting with a score of 3 and Managerial Accounting with a score of 3 and Corporate Finance with a score of 3 and (Meets BMAL590 / 27 hrs in BUSI with a score of 3 or BMAL 590)

Rationale

Students earning a graduate degree specializing in finance should understand the fundamentals of investments and options. This course introduces students to the elements of investments, portfolio theory, debt and equity instruments, and derivative markets essential for the investing.

Measurable Learning Outcomes

Upon successful completion of this course, the student will be able to:

  1. Contrast open-end mutual funds with closed-end funds, unit investment trusts, hedge funds, and exchange-traded funds.
  2. Identify reasons why technical analysis may be profitable.
  3. Calculate and interpret performance measures such as economic value added and rates of return on assets, capital, and equity.
  4. Formulate strategies for various investment options to modify portfolio risk-return attributes and to assess portfolio strategy.
  5. Integrate biblical principles within the field of investments.
  6. Develop an investment policy statement consistent with investment objectives and constraints.

Course Assignment

Textbook readings and lecture presentations/notes

Course Requirements Checklist

After reading the Syllabus and Student Expectations, the student will complete the related checklist found in Module/Week 1.

Discussion Board Forums (2)

The student is required to provide a thread in response to the provided prompt for each forum. The original thread needs to be 500-750 words for the initial post, include at least 2 references, include biblical scripture integrations, and demonstrate course-related knowledge from the text.

In addition to the thread, the student is required to reply to 2 other classmates’ main discussion board threads. Each reply thread needs to be 450-600 words, include 2 references, and one biblical integration.

The first discussion board main post will be due at the end of week-3, with reply posts due at the end of week-4.

Discussion Board 1 Topic:

Review the “Parable of the Talents” in Matthew 25: 14-30. Discuss (1.) money market instruments, (2.) fixed-income/bond instruments, (3.) equity investments, (4.) mutual funds, and (5.) derivative/option investments relative to the scripture. How does risk mitigation/avoidance and risk tolerance relate to return strategies/expectations for each of the five types of investments?

The second discussion board main post will be due at the end of week-5, with reply posts due at the end of week-6.

Discussion Board 2 Topic:

With the exclusion of Matthew 25: 14-30, please choose 4 scriptures that relate to the topic of investing, budgeting, and/or wealth management. Integrate the scriptures with the material from the text and from online resources to demonstrate how the Bible is vital to the principles of investments and/or your own investment strategies for retirement. Please make sure that your own original analysis of each scripture is provided.

Connect Plus Homework & Quizzes (16 Homeworks & 16 Quizzes)

The student will be assigned homework and quizzes to complete per chapter in Connect Plus.

In order to gain access to Connect Plus, the student may either purchase the textbook listed in the Syllabus with the access code or purchase the access code separately via the bookstore or the Connect website. The instructor will provide the student with the URL needed for registering during the week before the course begins, along with specific instructions for registering.

Investment Project: Chapter 22 Implementation & Application: Due Date of Week-7.

Please discuss and analyze your own investment management process (IMP) and develop your own investment policy statement (IPS) with regard to wealth creation and retirement planning. Discuss investment objectives and constraints in the development of your IPS. Comprehensively integrate the topics learned throughout the course.

The PowerPoint and the video presentation should cover the material points in tables 22.1, 22.2, and 22.3 on page 708 in the text in Chapter 22. Each point should be focused on the construction of your own strategies for retirement/estate-planning portfolio endeavors.

Table 22.1 addresses the “Components of the Investment Management Process”, to include the topics of planning, execution of the portfolio costruction and revisions, and the feedback process. Ten slides at a minimum should be dedicated to this table’s material.

Table 22.2 addresses the “Components of the Investment Policy Statement (IPS)”. Note that the nine points should be addressed in your presentation. Remember that you are the client. This is an applied future prescriptive exercise assignment. Nine to ten PPT slides should be dedicated to this table’s material.

Table 22.3 addresses the “Determination of Portfolio Policies”, to include the objectives and the constraints. Two to three PPT slides should be dedicated to this table’s material.

Please provided a Kaltura Video and a PowerPoint presentation to the appropriate, but separate, drop-boxes within the week-7 course content tab. The presentations does not have to be in an APA format, and you may utilize the first person since you are commenting on your analysis of the creation of your own IMP and IPS. A presentation of a 10-minute minimum (with a limit of 15-minutes) is required in Kaltura.