COURSE UNIT TITLE

Offered By

BUSINESS ADMINISTRATION

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

ASSOCIATE PROFESSOR EFE ÇAĞLAR ÇAĞLI

Offered to

BUSINESS ADMINISTRATION
Economics

Course Objective

This course aims to introduce the students to the investment process, risk and return calculations, investment in common stock, bond, derivatives and hybrid securities, efficient market hypothesis, behavioral finance, modern portfolio theory and management, macroeconomic and industry analysis, and equity valuation models.

Learning Outcomes of the Course Unit

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

FIN 2002 - BUSINESS FINANCE

Recomended Optional Programme Components

None

Course Contents

Recomended or Required Reading

1. Bodie, Z., Kane, A., Marcus, A.J., Investments, 11th Edition, 2018
2. CIVELEK, M. A. & DURUKAN M. B., (2011), Investments, 3rd ed., EFIL Publications, Ankara.
3. Borsa Istanbul A.Ş., Yayınlar, (https://www.borsaistanbul.com/sayfa/29)

Planned Learning Activities and Teaching Methods

1. Lecture
2. Problem Solving
During lectures, the theory will be explained with a comprehensive example.
3. Portfolio Game (Marketwatch)
The portfolio game played within a 10 week period will enable the students to apply what they learn in class with real time data.
The students will be competing at a virtual stock exchange game. They will form groups of 2 and each group is obligated to carry out a transaction at least once in two weeks. They will submit 2 stock reports, one before the mid-term exam and the other one before the final exam. In this report they will explain their transactions and the strategies they followed. They evaluate their performance and comment on what they have learned.
4. Presentation (Investor's World)
The students are also responsible for reviewing The Wall Street Journal, Financial Times, Dünya, Finansal Forum and daily newspapers in order to maintain some awareness of current financial events in the world and Turkey and a group of 3-4 students will submit a short paper on the topic of the week from these newspapers to discuss in class each week. They will also present the topic in 5-10 minutes.
5. Weekly Assignments

Assessment Methods

Further Notes About Assessment Methods

None

Assessment Criteria

1. Different types of financial markets and instruments will be classified.
2. Different indexes as sources of information will be searched and classified based on how they are calculated.
3. Information on financial instruments (stocks, bonds, futures, options, warrants and convertibles) as presented in the financial press will be used to explain their characteristics.
4. Futures will be used for a long and a short hedge.
5. Options pay offs and values will be calculated in relation to their holders and writers.
6. Stocks and bonds will be valued and an investment decision will be reached.
7. Effect of interest rates on bond valuation will assessed using duration.
8. An asset will be chosen among alternative assets by calculating risk and return.
9. An asset will be classified as undervalued or overvalued based on the capital asset pricing model.
10. An optimal two asset portfolio will be constructed by using the correlation coefficient and its risk and return will be calculated.
11. Markowitz approach to investing and the efficient frontier will be explained.
12. Portfolios will be monitored and modified using the Treynor and Sharp indexes.

Language of Instruction

English

Course Policies and Rules

1. It is obligatory to attend at least 70% of the classes.
2. Violations of Plagiarism of any kind will result in disciplinary steps being taken.
3. The instructor reserves the right to give quizzes at any time. The grades from the quizzes will be incorporated into the mid-term and final exam grades.

Contact Details for the Lecturer(s)

Prof. Dr. M. Banu Durukan
Tel: (232) 301 8248
E-mail: banu.durukan@deu.edu.tr

Dr. Efe Çağlar ÇAĞLI
e-mail: efe.cagli@deu.edu.tr
web: https://sites.google.com/site/eccagli/

Office Hours

By appointment - E-mail

Work Placement(s)

None

Workload Calculation

Contribution of Learning Outcomes to Programme Outcomes