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Online · School of Business · Graduate Business

Investments & Derivatives
BUSI-538

  • CG
  • Section 8WK
  • 11/08/2019 to 04/16/2020
  • Modified 01/30/2020

Course Description

This course explores the framework from which a company makes investment decisions, provides a foundation for the study of derivative products, and how companies may effectively use investments and derivatives to make wise financial decisions.

Requisites

Prerequisites

Financial Accounting with a score of 3 and Managerial Accounting with a score of 3 and Corporate Finance with a score of 3 and (Meets BMAL590 / 27 hrs in BUSI with a score of 3 or BMAL 590)

Rationale

Students earning a graduate degree specializing in finance should understand the fundamentals of investments and options. This course introduces students to the elements of investments, portfolio theory, debt and equity instruments, and derivative markets essential for the investing.

Measurable Learning Outcomes

Upon successful completion of this course, the student will be able to:

  1. Contrast open-end mutual funds with closed-end funds, unit investment trusts, hedge funds, and exchange-traded funds.
  2. Identify reasons why technical analysis may be profitable.
  3. Calculate and interpret performance measures such as economic value added and rates of return on assets, capital, and equity.
  4. Formulate strategies for various investment options to modify portfolio risk-return attributes and to assess portfolio strategy.
  5. Integrate biblical principles within the field of investments.
  6. Develop an investment policy statement consistent with investment objectives and constraints.

Course Resources

Required Resource Purchase

Bodie, Kane, & Marcus. (2017). Essentials of Investments. New York, NY: McGraw-Hill. ISBN: 978-0-07-783542-2, with Connect.

Disclaimer: The above resources provide information consistent with the latest research regarding the subject area. Liberty University does not necessarily endorse specific personal, religious, philosophical, or political positions found in these resources.

Recommended Resource

American Psychological Association. Publication manual of the American Psychological Association (current edition). Washington, DC: American Psychological Association.

Additional Materials for Learning

  1. Computer with basic audio/video output equipment
  2. Internet access (broadband recommended)
  3. Blackboard recommended browsers
  4. Microsoft Word and Microsoft Excel

Course Assignments

Textbook readings and lecture presentations/notes

Course Requirements Checklist

After reading the Syllabus and Student Expectations, the student will complete the related checklist found in Module/Week 1.

Discussion Board Forums (2)

The student is required to provide a thread in response to the provided prompt for each forum. The original thread needs to be 500-750 words for the initial post, include at least 2 references, include biblical scripture integrations, and demonstrate course-related knowledge from the text.

In addition to the thread, the student is required to reply to 2 other classmates’ main discussion board threads. Each reply thread needs to be 450-600 words, include 2 references, and one biblical integration.

The first discussion board main post will be due at the end of week-3, with reply posts due at the end of week-4.

Discussion Board 1 Topic:

Review the “Parable of the Talents” in Matthew 25: 14-30. Discuss (1.) money market instruments, (2.) fixed-income/bond instruments, (3.) equity investments, (4.) mutual funds, and (5.) derivative/option investments relative to the scripture. How does risk mitigation/avoidance and risk tolerance relate to return strategies/expectations for each of the five types of investments?

The second discussion board main post will be due at the end of week-5, with reply posts due at the end of week-6.

Discussion Board 2 Topic:

With the exclusion of Matthew 25: 14-30, please choose 4 scriptures that relate to the topic of investing, budgeting, and/or wealth management. Integrate the scriptures with the material from the text and from online resources to demonstrate how the Bible is vital to the principles of investments and/or your own investment strategies for retirement. Please make sure that your own original analysis of each scripture is provided.

Connect Plus Homework & Quizzes (16 Homeworks & 16 Quizzes)

The student will be assigned homework and quizzes to complete per chapter in Connect Plus.

In order to gain access to Connect Plus, the student may either purchase the textbook listed in the Syllabus with the access code or purchase the access code separately via the bookstore or the Connect website. The instructor will provide the student with the URL needed for registering during the week before the course begins, along with specific instructions for registering.

Investment Project: Chapter 22 Implementation & Application: Due Date of Week-7.

Please discuss and analyze your own investment management process (IMP) and develop your own investment policy statement (IPS) with regard to wealth creation and retirement planning. Discuss investment objectives and constraints in the development of your IPS. Comprehensively integrate the topics learned throughout the course.

The PowerPoint and the video presentation should cover the material points in tables 22.1, 22.2, and 22.3 on page 708 in the text in Chapter 22. Each point should be focused on the construction of your own strategies for retirement/estate-planning portfolio endeavors.

Table 22.1 addresses the “Components of the Investment Management Process”, to include the topics of planning, execution of the portfolio costruction and revisions, and the feedback process. Ten slides at a minimum should be dedicated to this table’s material.

Table 22.2 addresses the “Components of the Investment Policy Statement (IPS)”. Note that the nine points should be addressed in your presentation. Remember that you are the client. This is an applied future prescriptive exercise assignment. Nine to ten PPT slides should be dedicated to this table’s material.

Table 22.3 addresses the “Determination of Portfolio Policies”, to include the objectives and the constraints. Two to three PPT slides should be dedicated to this table’s material.

Please provided a Kaltura Video and a PowerPoint presentation to the appropriate, but separate, drop-boxes within the week-7 course content tab. The presentations does not have to be in an APA format, and you may utilize the first person since you are commenting on your analysis of the creation of your own IMP and IPS. A presentation of a 10-minute minimum (with a limit of 15-minutes) is required in Kaltura.

Course Grading

Course Requirements Checklist

10

Discussion Board Threads (2 @ 50 pts each)

100

Discussion Board Replies (2 @ 30 pts each)

60

Connect Homework (16 @ 20 pts each)

320

Connect Quizzes (16 @ 20 pts each)

320

Investment Project:  Chapter 22 IMP & IPS Application

·  100-Points for the PowerPoint presentation

·  100-Points for the Kaltura Video

200
Total 1010

Policies

Late Assignment Policy

Course Assignments, including discussion boards, exams, and other graded assignments, should be submitted on time.

If the student is unable to complete an assignment on time, then he or she must contact the instructor immediately by email.

Assignments that are submitted after the due date without prior approval from the instructor will receive the following deductions:

  1. Late assignments submitted within one week after the due date will receive up to a 10% deduction.
  2. Assignments submitted more than one week and less than 2 weeks late will receive up to a 20% deduction.
  3. Assignments submitted two weeks late or after the final date of the course will not be accepted outside of special circumstances (e.g. death in the family, significant personal health issues), which will be reviewed on a case-by-case basis by the instructor.
  4. Group projects, including group discussion board threads and/or replies, and assignments will not be accepted after the due date outside of special circumstances (e.g. death in the family, significant personal health issues), which will be reviewed on a case-by-case basis by the instructor.

Disability Assistance

Students with a disability and those with medical conditions associated with pregnancy may contact Liberty University’s Online Office of Disability Accommodation Support (ODAS) at [email protected] for accommodations.  Such accommodations require appropriate documentation of your condition.   For more information about ODAS and the accommodations process, including how to request an accommodation, please visit https://www.liberty.edu/online/online-disability-accommodation-support/. Requests for accommodations not related to disabilities or pregnancy must be directed to the Registrar’s Office, which generally handles medical needs support.

If you have a complaint related to disability discrimination or an accommodation that was not provided, you may contact ODAS or the Office of Equity and Compliance by phone at (434) 592-4999 or by email at [email protected].  Click to see a full copy of Liberty’s Discrimination, Harassment, and Sexual Misconduct Policy or the Student Disability Grievance Policy and Procedures.

Course Attendance

In an effort to comply with U.S. Department of Education policies, attendance is measured by physical class attendance or any submission of a required assignment within the enrollment dates of the course (such as examinations, written papers or projects, any discussion board posts, etc.) or initiating any communication with one’s professor regarding an academic subject. More information regarding the attendance policy can be found in the Academic Course Catalogs. Regular attendance in online courses is expected throughout the length of the term. Students who do not attend within the first week of a sub-term by submitting a required academic assignment (such as the Course Requirements Checklist, an examination, written paper or project, discussion board post, or other academic activity) will be dropped from the course. Students who wish to re-engage in the course are encouraged to contact Academic Advising to discuss their enrollment options. Students who begin an online course, but at some point in the semester cease attending, and do not provide official notification to withdraw, will be assigned a grade of “FN” (Failure for Non-Attendance). Students wishing to withdraw from courses after the official start date should familiarize themselves with the withdrawal policy.

Grading Scale

A- B+ B B- C+ C C- D+ D D- F
940-1010 920-939 900-919 860-899 840-859 820-839 780-819 760-779 740-759 700-739 680-699 679 and below

For courses with a Pass/NP final grade, please refer to the Course Grading section of this syllabus for the assignment requirements and/or point value required to earn a Passing final grade.

Add/Drop Policy

The full policy statement and procedures are published in the Policy Directory.

Honor Code

Liberty University comprises a network of students, Alumni, faculty, staff and supporters that together form a Christian community based upon the truth of the Bible. This truth defines our foundational principles, from our Doctrinal Statement to the Code of Honor. These principles irrevocably align Liberty University’s operational procedures with the long tradition of university culture, which remains distinctively Christian, designed to preserve and advance truth. Our desire is to create a safe, comfortable environment within our community of learning, and we extend our academic and spiritual resources to all of our students with the goal of fostering academic maturity, spiritual growth and character development.

Communities are predicated on shared values and goals. The Code of Honor, an expression of the values from which our Doctrinal Statement was born, defines the fundamental principles by which our community exists. At the core of this code lie two essential concepts: a belief in the significance of all individuals, and a reliance on the existence of objective truth.

While we acknowledge that some may disagree with various elements of the Code of Honor, we maintain the expectation that our students will commit to respect and uphold the Code while enrolled at Liberty University.

Adherence to the principles and concepts established within facilitates the success of our students and strengthens the Liberty community.

The Code of Honor can be viewed in its entirety at http://www.liberty.edu/index.cfm?PID=19155.

Schedule

BUSI 538

Textbook: Bodie, Kane, & Marcus, Essentials of Investments. (2017).

Module/

Week

Reading & Study

Assignments

Points

1

Bodie:

Chapters 1 & 2.

Course Requirements Checklist

Class Introductions

Chapter 1: Homework

Chapter 1: Quiz

Chapter 2: Homework

Chapter 2: Quiz

10

0

20

20

20

20

2

Bodie:

Chapters 3 & 4.

Chapter 3: Homework

Chapter 3: Quiz

Chapter 4: Homework

Chapter 4: Quiz

20

20

20

20

3

Bodie:

Chapters 6 & 7.

Chapter 6: Homework

Chapter 6: Quiz

Chapter 7: Homework

Chapter 7: Quiz

Discussion Board 1: Main Post

20

20

20

20

50

4

Bodie:

Chapters 8 & 9.

Chapter 8: Homework

Chapter 8: Quiz

Chapter 9: Homework

Chapter 9: Quiz

Discussion Board 1: Reply Posts

20

20

20

20

30

5

Bodie:

Chapters 10 & 11.

Chapter 10: Homework

Chapter 10: Quiz

Chapter 11: Homework

Chapter 11: Quiz

Discussion Board 2: Main Post

20

20

20

20

50

6

Bodie:

Chapters 13 & 14.

Chapter 13: Homework

Chapter 13: Quiz

Chapter 14: Homework

Chapter 14: Quiz

Discussion Board 2: Reply Posts

20

20

20

20

30

7

Bodie:

Chapters 15 & 16.

Chapter 15: Homework

Chapter 15: Quiz

Chapter 16: Homework

Chapter 16: Quiz

Investment Project: Kultura Video

Investment Project: PPT Presentation

20

20

20

20

100

100

8

Bodie:

Chapters 18 & 19.

Chapter 18: Homework

Chapter 18: Quiz

Chapter 19: Homework

Chapter 19: Quiz

20

20

20

20

Total

1010

DB = Discussion Board

NOTE: Each course Module/Week begins on Monday and ends at 11:59 p.m. (ET) on Sunday.  The final Module/Week ends at 11:59 p.m. (ET) on Friday.