FIN 4315: Portfolio Analysis Course Syllabus

CRN: 24797
Spring 2022
Professor: Dr. Yu Hu

Office: 205C
e-mail: yhu1@utep.edu
Phone: 915.747.5406
Class Meetings: TR 10:30 am - 11:50 am (COBA 332)
Office Hours: MW 2 pm – 3 pm
TR 1 pm – 2 pm

Course Description

The course introduces students to basics of modern portfolio analysis techniques, including finding
efficient portfolio mean-variance analysis, calculating efficient frontiers. The course also
introduces the calculation of correlation structure of security returns and the process to simplify
the portfolio selection process with single or multiple models. The course further examines the
models of equilibrium in capital markets, international diversification, and other portfolio selection
models, such as safety-first, and ends with discussion of portfolio management. The course
demonstrates and explores the various implications of portfolio analysis using computer.
Prerequisite: FIN 3315 with grade C or better, or departmental approval.

Objective

The objective of this course is to provide an advanced undergraduate level study of portfolio
analysis. The course is integrated with a finance lab to give students practical knowledge of the
portfolio formation process and portfolio management. Students will demonstrate an
understanding of the techniques, practices and literature in portfolio analysis in all these areas. For
instance, students will demonstrate knowledge of mean-variance portfolio optimization in the
classic sense. Students will demonstrate knowledge of the uses of single- and multi- index models
that simplify the classic portfolio optimization problem.

E-Mail Policy

It is the policy of the finance department that all e-mails sent to professors or teaching assistants
be of a professional nature and format. A formal greeting and salutation are required. Proper
grammar, spelling, and format are required. You must clearly state the problem or question that
will be addressed. You must identify the class, section, time, and location where the class meets.
We reserve the right to not reply to any e-mail that does not meet these requirements and is not of
a professional nature.

1
Course Materials

Modern Portfolio Theory and Investment Analysis, 9th Edition

By Elton, Gruber, Brown, and Goetzmann
ISBN: 978-1-118-46994-1
(access code not requirede)

Texas Instruments BA II Plus Calculator

Grade Components

3 Exams (25% each) 75%

9 Homework assignments 25%
Total 100%

Grading is on a straight scale: 90 – A, 80 – B, 70 – C, 60 – D, <60 – F

Exams: First three exams are mandatory. The Final Exam is comprehensive and optional. If you
take the final exam, it may replace your lowest exam score in the overall grade calculation. The
exam dates will be announced in class. Make-up exam will be given to students who have “excused
absences due to university-recognized activities”. These students are required to send written
notice to the instructor about such activities ahead of time. See student handbook for a description
of these activities. Requests for an excuse must be made in writing and, except for extreme
emergencies, prior to the test.

The exams will be mostly multiple-choice questions, with some problems. Calculator and scantron
are required to take the exam. Use of electronic devices such as laptop, smartphones, and tablets
are prohibited during exam.

Homework: A series of homework problems will be assigned for each chapter. Due dates and the
problems will be announced in class. No late homework assignments will be accepted under ANY
circumstance.

2
Tentative Schedule

Date Topic Assignments Due

18-Jan Intro and Overview
20-Jan Ch 4
25-Jan Ch 4
27-Jan Ch 5 HW 1 Ch 4
1-Feb Ch 5
3-Feb Ch 5
8-Feb Ch 7 HW 2 Ch 5
10-Feb Ch 7
15-Feb Exam 1 (Ch 4, 5, 7) HW 3 Ch 7
17-Feb Ch 8
22-Feb Ch 8
24-Feb Ch 10 HW 4 Ch 8
1-Mar Ch 10
3-Mar Ch 11
8-Mar Ch 11
10-Mar Ch 11
15-Mar Spring Break
17-Mar Spring Break
22-Mar Exam 2 (Ch 8, 10, 11) HW 5 Ch 11
24-Mar Ch 18
29-Mar Ch 18
31-Mar Ch 19 HW 6 Ch 18
5-Apr Ch 19
7-Apr Ch 22 HW 7 Ch 19
12-Apr Ch 22
14-Apr Ch 22
19-Apr Exam 3 (Ch 18, 19, 22) HW 8 Ch 22
21-Apr Ch 21
26-Apr Ch 21
28-Apr Ch 21
3-May Review HW 9 Ch 21
5-May Optional Final Exam
10-May

3
Withdrawal Policy

A student may officially withdraw from this class with an automatic grade of W at any time
BEFORE April 1st 2022. Automatic withdrawals will NOT be made by the instructor. To be
withdrawn from the class, students must take the appropriate actions on or before the university
deadlines.

Accommodations Policy

The University is committed to providing reasonable accommodations and auxiliary services to

students, staff, faculty, job applicants, applicants for admissions, and other beneficiaries of
University programs, services and activities with documented disabilities in order to provide them
with equal opportunities to participate in programs, services, and activities in compliance with
sections 503 and 504 of the Rehabilitation Act of 1973, as amended, and the Americans with
Disabilities Act (ADA) of 1990 and the Americans with Disabilities Act Amendments Act
(ADAAA) of 2008. Reasonable accommodations will be made unless it is determined that doing
so would cause undue hardship on the University. Students requesting an accommodation based
on a disability must register with the UTEP Center for Accommodations and Support Services
(CASS). Contact the Center for Accommodations and Support Services at 915-747-5148, or email
them at cass@utep.edu, or apply for accommodations online via the CASS portal.

COVID-19 Accommodations

Students are not permitted on campus when they have a positive COVID-19 test, exposure or
symptoms. If you are not permitted on campus, you should contact me as soon as possible so we
can arrange necessary and appropriate accommodations.
(classes with on-campus meetings) Students who are considered high risk according to CDC
guidelines and/or those who live with individuals who are considered high risk may contact Center
for Accommodations and Support Services (CASS) to discuss temporary accommodations for on-
campus courses and activities.

Scholastic Integrity

Academic dishonesty is prohibited and is considered a violation of the UTEP Handbook of

Operating Procedures. It includes, but is not limited to, cheating, plagiarism, and collusion.
Cheating may involve copying from or providing information to another student, possessing
unauthorized materials during a test, or falsifying research data on laboratory reports. Plagiarism
occurs when someone intentionally or knowingly represents the words or ideas of another as ones'
own. Collusion involves collaborating with another person to commit any academically dishonest
act. Any act of academic dishonesty attempted by a UTEP student is unacceptable and will not be
tolerated. All suspected violations of academic integrity at The University of Texas at El Paso
must be reported to the Office of Student Conduct and Conflict Resolution (OSCCR) for possible
disciplinary action. To learn more, please visit HOOP: Student Conduct and Discipline.

Covid-19 Precautions

4
You must STAY AT HOME and REPORT if you (1) have been diagnosed with COVID-19, (2)
are experiencing COVID-19 symptoms, or (3) have had recent contact with a person who has
received a positive coronavirus test. Reports should be made at screening.utep.edu. If you know
of anyone who should report any of these three criteria, you should encourage them to report. If
the individual cannot report, you can report on their behalf by sending an email to
COVIDaction@utep.edu.
For each day that you attend campus—for any reason—you must complete the questions on the
UTEP screening website (screening.utep.edu) prior to arriving on campus. The website will verify
if you are permitted to come to campus. Under no circumstances should anyone come to class
when feeling ill or exhibiting any of the known COVID-19 symptoms. If you are feeling unwell,
please let me know as soon as possible, and alternative instruction will be provided. Students are
advised to minimize the number of encounters with others to avoid infection.
Wear face coverings when in common areas of campus or when others are present. You must
wear a face covering over your nose and mouth at all times in this class. If you choose not to wear
a face covering, you may not enter the classroom. If you remove your face covering, you will be
asked to put it on or leave the classroom. Students who refuse to wear a face covering and follow
preventive COVID-19 guidelines will be dismissed from the class and will be subject to
disciplinary action according to Section 1.2.3 Health and Safety and Section 1.2.2.5 Disruptions
in the UTEP Handbook of Operating Procedures.
(classes with on-campus meetings) Please note that if COVID-19 conditions deteriorate in the
City of El Paso, all course and lab activities may be transitioned to remote delivery.

Course Resources

UTEP provides a variety of student services and support:

Technology Resources
• Help Desk: Students experiencing technological challenges (email, Blackboard, software,
etc.) can submit a ticket to the UTEP Helpdesk for assistance. Contact the Helpdesk via
phone, email, chat, website, or in person if on campus.

Academic Resources
• UTEP Library: Access a wide range of resources including online, full-text access
to thousands of journals and eBooks plus reference service and librarian assistance
for enrolled students.
• University Writing Center (UWC): Submit papers here for assistance with writing
style and formatting, ask a tutor for help and explore other writing resources.
• Math Tutoring Center (MaRCS): Ask a tutor for help and explore other available
math resources.
• History Tutoring Center (HTC): Receive assistance with writing history papers, get
help from a tutor and explore other history resources.
• RefWorks: A bibliographic citation tool; check out the RefWorks tutorial and Fact
Sheet and Quick-Start Guide.

Individual Resources
• Military Student Success Center: Assists personnel in any branch of service to reach their
educational goals.

5
• Center for Accommodations and Support Services: Assists students with ADA-related
accommodations for coursework, housing, and internships.
• Counseling and Psychological Services: Provides a variety of counseling services
including individual, couples, and group sessions as well as career and disability
assessments.

6
7