Finance 403

Portfolio Management
Fall 2009
Professor: Dr. Terry Nixon
Class Times: TR 2:15 3:30 p.m.
Office Hours and Access:
Office: 2065 FSB
Phone: 529-6503
E-mail:
nixontd@muohio.edu
Office Hours: TR 10:0011:30 a.m., 3:45-4:30 p.m., and by appointment
Webpage: http://www. sba.muohio.edu/nixontd/
COURSE OBJECTIVE: This class is designed to reinforce and expand the investment principles
introduced in FIN 401. Students are expected to learn underlying portfolio theories and apply them in
practice. This process involves critical thinking skills, including reasoning and recognizing the
relationships among financial variables to solve complex problems; understanding the context in which
the decision must be made, and making informed decisions.
PREQUISITES: FIN401
TEXT: Investments, Bodie, Kane and Marcus, Eighth Edition
CALCULATOR: A calculator and the ability to effectively employ it will be required to successfully
complete this class.
COURSE GRADES: Your final class grade will be determined as follows:
Exam #1
Exam #2
Exam #3
Exam #4
Exam #5 (Final)

20%
20%
20%
20%
20%

Tuesday, September 15
Tuesday, October 6
Tuesday, October 27
Tuesday, November 17
Tuesday, December 15 @ 3p.m.

EXAMS: All exams will be given during the class period. The exams will typically consist of some
combination of multiple choice and problem/short answer questions. NO MAKE UP EXAMS WILL
BE GIVEN UNLESS THE INSTRUCTOR IS CONTACTED IN ADVANCE AND AGREES
THAT A REASONABLE EXCUSE FOR MISSING THE EXAM EXISTS.
CLASS PARTICIPATION: Regular attendance is expected. I reserve the right to drop students with a
significant record of non-attendance. I expect you to be prepared for each days class and to be active
participants.
END OF CHAPTER PROBLEMS AND SOLUTIONS: As the semester progresses, I will make
suggestions regarding appropriate end of chapter questions and problems. The solutions will be made
available on the librarys electronic course reserve system. The password will be fin403

IMPORTANT DATES:
September 14:
Last Day to Drop without Grade
September 15:
Exam 1
October 6:
Exam 2
October 20:
Speaker, Judith Greffin, Chief Investment Officer at Allstate Investments
October 27:
Exam 3
October 30:
Last Day to withdraw from a course with a W
November 17:
Exam 4
November 26:
Thanksgiving Holiday (No Class)
December 15:
Final Exam (Exam 5), 3p.m.

Introduction
Historical Risk-Return
Information
Risk and Risk Aversion
Portfolio Theory
Index Models
CAPM
APT
Efficient Markets
Behavior Finance and
Technical Analysis
Empirical Evidence
Managing Bond Portfolios
Options
Option Valuation
Futures and Forwards
Performance Evaluation
International
Diversification
Hedge Funds
Active Portfolio
Management

APPROXIMATE MATERIAL COVERAGE

Chapters 1-4
I will not lecture most of this material. This is
information you should review from your
FIN401 experience.
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 16

If youre feeling rusty in regard to bond

pricing, you should go over chapters 14 and 15.

Chapter 20
Chapter 21
Chapter 22-23
Chapter 24
Chapter 25
Chapter 26
Chapter 27

Note: The ordering of the material is tentative and adjustment may be made as deemed necessary
by the instructor.