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Personal
Investment Management The Johns Hopkins University, School of Professional Studies and Education, MBA Program For more information contract Nico Washington (nwashington@jhu.edu) |
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Objectives Students survey the process of setting and achieving personal investment objectives. Students are introduced to basic theory and practical techniques for personal investment. Topics include: determining objectives and risk tolerance; sources and measurements of risk and return; the mechanics of economic, industry and company analysis; and characteristics of equities, fixed income and other investment classes. Upon completion of this survey course, the student should be better equipped to set appropriate financial goals and make investment choices that are consistent with such financial objectives, investment time horizons and risk tolerance levels.
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Texts "Fundamentals of Investment Management (6th Edition)". (1999) Block, Stanley B. and Hirt, Geoffrey A., Burr Ridge, IL: Richard D. Irwin, Inc. "Investing Online for Dummies (3rd Edition)". (2000)". Sindell, Kathleen, Indianapolis, IL: IDG Books Worldwide.
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| Additional
Reading for Further Study ''Bogle on Mutual Funds". (1994) Bogle, John C., New York, New York: Dell Publishing. "One Up on Wall Street" (1989) Lynch, Peter, New York, New York: Penguin Books. "A Random Walk Down Wall Street". (1996) Malkiel, Burton G., New York, New York: W. W. Norton & Company. "A Random Walk Down Wall Street". (1996) Malkiel, Burton G., New York, New York: W. W. Norton & Company. Read online or offline the speeches and the Plain Talk educational series from Vanguard's founder and Senior Chairman John C. Bogle at the Vanguard Learning Center Library (http://flagship2.vanguard.com/VGApp/hnw/FormsPlainTalkBro) Read about undervalued stocks. Each month the National Association of Investors Corporation features an "undervalued stock" selected by Better Investing's Securities Review Committee. For details see NAIC Better Investing (www.better-investing.org).
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Evaluation
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| Class participation and the completion of
assignments. Class participation is divided into two sections. The first section is 10
percent of the class's overall grade for class attendance and active class involvement.
The second section is 30 percent of the overall grade for the completion of written
textbook problems and the student's readiness to orally present all assignments and
discussion problems at the end of each chapter. Written reviews of John C. Bogle include a 5-6-page report and a 5-minute oral presentation (if time permits) of the assignment. Written reviews of John C. Bogle include a 5-6-page report and a 5-minute oral presentation (if time permits) of the assignment. Group presentation of the Portfolio Management Project includes weekly reports of the portfolio's performance and a 15-minute oral presentation of the group's results. The grade will be determined by how well the portfolio matches the original investment objectives and not just on appreciation. Group presentation of the Portfolio Management Project includes weekly reports of the portfolio's performance and a 15-minute oral presentation of the group's results. The grade will be determined by how well the portfolio matches the original investment objectives and not just on appreciation.
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| Grading The letter grades correspond to the following percentages: Letter Grade Corresponding Percentages A 93 to 100% A- 90 to 92% B+ 87 to 89% B 83 to 86% B- 80 to 82% C 70 to 79% F Less than 69%
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| Written Review The paper will be double-spaced and 5 to 6 pages in length, but no longer than 6 pages, excluding any supplementary tables and graphs appended to the paper. Use the following format:
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| Group Portfolio
Management Project Form a group (3-5 students) at the first class meeting. Use the portfolio tracker at Reuters (www.reuters.com) to track the performance of your investment selections. In the third class session start with $500,000; set your investment policy, investment universe and begin trading your portfolio. Please note that after your initial selection of five investments, you must complete at least one trade. At the beginning of each Saturday class meeting hand in a written positions statement and declare the value of your portfolio. On the last day of class hand in a hard copy and an electronic version of your group portfolio management project. State the reasoning behind your investment objectives and present your results in a 15-minute oral presentation. Grades will be determined by how well your portfolio matches your objectives and not just on appreciation. |
Class Schedule
Session |
Description |
Chapter(s) |
1 |
Course introduction. Introduction
to Investments & Markets Complete individual investor risk profile |
#1,2 |
2 |
The Market. Information Sources Indexes and averages Types of orders Online and offline sources of investor information |
#3,4 |
3 |
Computer Lab: Offline and Online
Stock Analysis Begin discussion of stock analysis Economic activity and business cycles Industry analysis Corporation valuation Financial statement analysis Stock screening Finding undervalued stocks Begin portfolio management project |
5,6,7,8 |
4 |
Continue discussion of stock analysis | |
5 |
Bond and fixed income fundamentals. Bond valuation | 11,12 |
6 |
Computer Lab: Derivatives &
Mutual Funds Derivative products: Put and call options Commodities and financial futures Mutual fund analysis: Selecting a mutual fund Using mutual online mutual fund screens Designing your own mutual fund screen Analyzing a mutual fund Buying a mutual fund Monitoring a funds performance Selling a mutual fund |
15,16,19 |
7 |
Continue discussion of derivatives and mutual funds | |
8 |
Stock options and international securities | 17,18, |
9 |
Portfolio management. Measuring
risks and returns Online portfolio management Computerized portfolio management Term paper due and presentation Group portfolio management due and presentation |
21,22 |