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Rutgers School of Business Investment Analysis & Management Summer 2011 ____________________________________________________________________________ Course Overview: Students will develop

a strong understanding of the broad range of asset classes and security types available to construct investment portfolios. In addition, we will review concepts and techniques that are utilized to construct portfolios by a wide range of investors (e.g. pension funds, mutual funds, hedge funds, etc.). Finally, we will discuss how economic and technical factors can influence the financial markets, making reference to current financial conditions as well as various periods over the past 20 years. In addition to the text, the course will make use of research pieces produced by Wall Street firms, governmental agencies and academic sources. Instructor: William G Clark Biographical Sketch: Mr. Clark currently serves (March 2010 present) as Senior Vice President and Chief Investment Officer for the Federal Reserve Systems Office of Employee Benefits. In that role, he is responsible for the investments of the Federal Reserves $7.5 billion defined benefit plan and $5.4 billion defined contribution plan. Prior to that, he was Deputy Director (1999-2005) and then Director (2005-2010) of the New Jersey Division of Investment with responsibility for managing the States $70 billion pension fund and $15 billion Cash Management Fund. Prior to that, we was Senior Vice President Group Pensions for MBL Life Assurance Corporation where he managed the companys $5.5 billion group pension business and participated in a variety of strategic initiatives and transactions. He is also a frequent presenter at industry and academic conferences. He earned a B.S in Accounting from Villanova University and an M.B.A. from the Rutgers Graduate School of Management. He is also a C.P.A. licensed in the State of New Jersey. Office: TBD Office Hours: TBD; Also, instructor is available by appointment. Phone: 973-848-3606 (work); 908-285-0283 (cell) Email: Text: Investments, 9th Ed., by Bodie, Kane, and Marcus. Publisher: McGraw-Hill Irwin, 2011. The text will be supplemented with additional material in my lectures or on the Blackboard Account. You are responsible for this material, so please get the notes from a fellow student in the event that you miss a class. Also, there may be an occasional guest speaker with expertise in one or more topics. Homework: There will be occasional homework problems to help prepare you for the exams, but I will not collect or grade them. The solutions will be reviewed in class. Grading: Midterm (25%); In-class Presentation (10%); Research Paper (25%) Cumulative Final (45%)

Each student will be assigned to make a 10 minute presentation in class on a topic that is related to the material covered in the current or a previous class. This topic will be assigned on the first evening of class. Students will be given a choice of five topics (see below) for submission of a research paper (no longer than 20 pages in length). Papers are due by Friday July 29, as the final class will be devoted to a discussion of the five topics.

Class Participation: Strongly encouraged. The instructor will incorporate his first hand experience on various investment topics, and requests that students feel free to do the same. Instructor will also ask frequent questions of the students to facilitate an open dialogue about various investment-related issues. OUTLINE FOR INVESTMENT ANALYSIS CLASS (TENTATIVE) To get the maximum benefit from the course, it is strongly recommended that you read the appropriate chapters before class and read all of the material posted to the Blackboard Account prior to each class. May 23: Introduction to the Class; Review of Chapters 1-3 Jun 3 (Friday): Review of Chapters 4-6; Student Presentations Jun 6: Review of Chapters 7-10; Student Presentations Jun 13: Review of Chapters 11-13; Student Presentations Jun 20: Review of Chapters 14-16; Student Presentations Jun 27: Review of Chapters 17-18; Preparation for Mid-Term; Student Presentations Jul 8 (Friday): MIDTERM Jul 11: Review of MIDTERM; Review of Chapters 19-21; Student Presentations Jul 18: Review of Chapters 22-24; Student Presentations Jul 25: Review of Chapters 25-28; Student Presentations Aug 1: Discussion of Research Paper Topics; Preparation for Final Exam Aug 8: FINAL EXAM


1) What impact will Dodd-Frank have on the trading of financial instruments in the U.S.? Will these impacts be positive or negative for investors? Why? 2) QE 2 Was it necessary to stimulate economic growth or is it sowing the seeds for undesirable levels of inflation in the years ahead? How would your view impact your investment strategy? 3) Bringing Behavioral Finance to Life: Identity 2-3 investments (either asset classes or security types not an individual stock or bond) that are trading at levels inconsistent with their theoretical values. Explain why you believe this is occurring. 4) The Credit Crisis in State and Local Governments: Is it real or hyped? Analyze the status of state and local government finances and the market reactions to date. 5) Tail risk hedging strategies: What are they? Are They Effective? Are they Worth the Cost?