University of Waterloo

ACTSC 371: Introduction to Investments

Fall 2017

Instructors: Peter Blake, M3 2016, ext. 31074, pblake@uwaterloo.ca

Surya Banerjee, M3 2017, ext. 39120, surya.banerjee@uwaterloo.ca

Class Times: Lecture: 1:30-2:20 MWF (STC 0040) (Surya),

4:30-5-20 MWF (MC 1085) (Peter)
Tutorial: 1:30-2:20 Th (MC 1085-Peter), 8-30-9-20 F (STC 0010-Surya)
The tutorials are scheduled every week, unless mentioned in class.

Course Webpage: learn.uwaterloo.ca

Office Hours: TBA

Teaching Assistants: See course webpage for their names, email addresses and office hours

Course Evaluation: Three Tutorial tests (5% each): September 21/22, October 26/27,
November 23/24 (during tutorial hours)

Two Midterm Tests: (12.5% each) October 6th, November 10th.

Final Exam: 60%

Syllabus: This course provides an introduction to
• Capital markets,
• Analysis of equity and fixed securities
• Derivative securities, including futures, forwards, swaps and
options.

References: • Investments (2014) by Bodie, et al. (8th Canadian Edition)

• Supplementary notes
• Other resources:
o investopedia.com
o sec.gov
o cboe.com
This course is accredited under the Canadian Institute of Actuaries (CIA) University Accreditation Program (UAP) for the
2015-2016 academic year. Achievement of the established minimal grade in this course may qualify a candidate
for CIA credit toward certain preliminary exams. Please note, a combination of courses may be required to achieve a single
exam credit. Please see http://www.cia-ica.ca/membership/uap/information-for-students for full details.

Notes:
1. If you miss three or more term exams (regardless of documentation) you will automatically receive a grade of DNW. Therefore
you should withdraw from the course.
2. Missed Term Tests/Final Exam: If you miss a test or final exam due to illness or extenuating circumstances you must
provide proper documentation to your instructor within 48 hours of the missed test or final exam. In the case of illness you
must provide a completed University of Waterloo Verification of Illness form. See: https://uwaterloo.ca/health-
services/sites/ca.health-services/files/uploads/files/VIF-online.pdf In the case of extenuating circumstances you must provide
sufficient documentation to your instructor to verify the circumstances. Missed term tests without proper documentation
are automatically awarded a grade of 0.
3. Remarking of Tests: If you have a question regarding the marking of a test you must first check the posted solutions. If you
still have a question then please write a clear question on a separate piece of paper, attach it to your test and give it to the
Head TA for the course. You have 7 days to appeal a test grade.

Weekly Schedule:
The following table gives a tentative schedule for the material covered:

Week Chapter Topics

Investment Environment
1, 2 (exclude
1. & Financial Markets and
2.5)
Instruments
Trading on Securities
2. 3 Markets; Time value of
money
3, 4 Return and Risk
Capital Allocation to
4. 5, 7.1
Risky Assets & CAPM
Midterm 1: October 6th

5. 12 Bond Prices and Yields

The Term Structure of
6. 13
Interest Rates

Managing Bond
7. 14
Portfolios;
Managing Bond
8. 14
Portfolios
Midterm 2: November 10th
 Equity Evaluation
9. 16
Models; l

Options and Other

10. 18
Derivatives Markets

Option
11. 18, 19.1- 19.3
Valuation
Futures,
12. 20 Forwards, and
Swap Markets

University of Waterloo and Mathematics Faculty Policies

All instructors and students must follow the following academic policies:
Academic Integrity: In order to maintain a culture of academic integrity, member of the University of Waterloo community
are expected to promote honesty, trust, fairness, respect and responsibility.
See: www.uwaterloo.ca/academicintegrity/ for more information.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence,
and to take responsibility for his/her actions. A student who is unsure whether an action constitutes an offence, or who
needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should
seek guidance from the course instructor, academic advisor, or the undergraduate Associate Dean. For information on
categories of offences and types of penalties, students should refer to Policy 71, Student Discipline,
www.adm.uwaterloo.ca/infosec/Policies/policy71.htm.
See: www.adm.uwaterloo.ca/infosec/guidelines/penaltyguidelines.htm for guidelines for the assessment of penalties.

Avoiding Academic Offenses: For more information on commonly misunderstood academic offenses and how to avoid
them, students should refer to the Faculty of Mathematics Cheating and Student Academic Discipline Policy. See:
http://www.math.uwaterloo.ca/navigation/Current/cheating_policy.shtml.

Grievance: A student who believes that a decision affecting some aspect of his/her university life has been unfair or
unreasonable may have grounds for initiating a grievance. See Policy 70, Student Petitions and Grievances, Section 4:
https://uwaterloo.ca/secretariat-general-counsel/policies-procedures-guidelines/policy-70. When in doubt, please contact the
department’s administrative assistant who will provide further assistance.

Appeals: A decision made or penalty imposed under Policy 70 (Student Petitions and Grievances) (other than a petition) or
Policy 71 (Student Discipline) may be appealed if there is a ground. A student who believes he/she has a ground for an
appeal should refer to Policy 72 (Student Appeals).
See: www.adm.uwaterloo.ca/infosec/Policies/policy72.htm.

Mathematics Faculty INC Grade Policy: A grade of INC is awarded to a student who has completed course work during
the term well enough that they could reasonably be expected to earn a passing mark in the course, but who was unable to
complete end-of-term course requirements (usually the final exam) for reasons beyond his or her control. See:
http://www.math.uwaterloo.ca/navigation/Current/inc.procedure.shtml.

AccessAbility Services:
AccessAbility Services, located in Needles Hall, Room 1132, collaborates with all academic departments to arrange
appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If
you require academic accommodations to lessen the impact of your disability, please register with the AccessAbility
Services at the beginning of each academic term.