Syllabus: BFIN 2039 Investment Management/Capital Markets

Fall 2023
Wed 6:20pm-9:20pm
Mervis B60 & Online Via Zoom

Professor Akin Sayrak, Ph.D. Office: 2802 Posvar Hall

Course materials: https://canvas.pitt.edu Phone: (412) 512-5720
Office hours: By appointment Email: [email protected]

Introduction and Objectives:

The objective of the Investment Management is to provide the student with a theoretical and practical
background in the field of investments. The course will cover the major topics of financial markets,
portfolio theory, equity and fixed-income security analysis, capital market equilibrium and risk-return
trade-off, performance evaluation, risk management and derivatives. The course is intended for
students who want to become an investment professional or those who want to be a wise individual
investor. Real-world examples will be given to make connections with the theoretical framework.
Hands-on portfolio management exercises using the Bloomberg system will help the student implement
the theory taught in class using real data and trading mechanisms.

Course Materials
Required:
Lecture notes/material posted on Canvas.
Textbook: Online version via Canvas/McGraw-Hill Connect, Investments, 13th Ed., Zvi Bodie,
Alex Kane, and Alan J. Marcus, Irwin/McGraw Hill, 2024.
Optional: Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term
Investment Strategies, 2nd Ed., Jeremy J. Siegal, and Peter L. Bernstein, McGraw Hill, New York, NY
1998.
Recommended: Wall Street Journal, Business Week, Fortune, The Economist, and Forbes

Course Prerequisites
The student should possess spreadsheet programming skills and a good working knowledge of college
algebra and statistics as well as be familiar with the concepts of present value, future value and net
present value that will be used throughout the course. Experience in Excel-based optimization will be a
useful asset. Bloomberg certification is highly recommended.

Grading
The grades will be determined by reading assignments, performance on problem-sets, an in-class
midterm exam, a comprehensive final exam, and class participation/attendance involving quizzes. Score
schedule will be as follows:

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Class participation and attendance scores will be assessed at the sole discretion of the instructor. Note
that being prepared for class and participating in discussions will be a significant component in your
overall grade. Please act accordingly.
The exam is closed-book, but you may utilize a formula sheet. Calculators will be permitted.
There will be no make-up exam and you must take the exam during your registered section. Exams are
scheduled well in advance so that you can plan around these dates. Do not ask to be excused from
exams for matters of personal convenience. An unexcused absence without supporting documentation
(e.g., doctor’s note or police report) will result in a grade of zero.
There will be graded homework assignments during the course. Students are required to work in groups
of four as well as individually on these assignments and submit typed or neatly written on due date.
Late submissions are under no circumstances accepted. Solutions to the assignments will be made
available subsequently. The problem sets are graded and serve to prepare you for the exams. Students
should not use any homework material from previous years. The recommended starting dates to begin
working on these assignments as well as the mandatory due dates will be made available later.

Requirements:
1. Alternate exam dates cannot be given. The student should bring conflicts between the
scheduled exams and other academic or work requirements to the instructor's attention in
writing as soon as possible. Any student bringing an examination conflict to the instructor
during the course with an excuse acceptable to the instructor will have to substitute a special
final examination for the missed examinations or use some other method of making up for the
missed examination as determined exclusively by the instructor.
2. The final grade in the course, once assigned, will not be changed except in the event of a
recording error.
3. Academic dishonesty (as defined in this syllabus below) will not be tolerated and will be dealt
with in the most severe manner possible. Specifically, it is expected that individual assignments
or examination work the student submits should be entirely his/her own.
4. If you have a disability that requires special testing accommodations or other classroom
modifications, you need to notify both the instructor and Disability Resources and Services no
later than the second week of the term. You may be asked to provide documentation of your
disability to determine the appropriateness of accommodations. To notify Disability Resources
and Services, call (412) 648-7890 (Voice or TTD) to schedule an appointment. The Disability
Resources and Services office is located in 140 William Pitt Union on the Oakland campus.
5. You are urged to attend class regularly. If you miss a class, it is entirely your responsibility to
determine what you have missed including any administrative announcements I may have
made. Some of the material covered in exams may not be found in the text.
6. Canvas and/or e-mail will be used to make announcements not necessarily covered in class. You
are required to visit the Canvas site periodically so that you can obtain information on changes
in course schedules, exam times, due dates, etc.
7. Office hours for the instructor are by appointment only unless otherwise noted.
8. Students should submit the assignments in groups of four, and on time. Late submissions will be
penalized.

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 9. A financial calculator is recommended for this course and will be required to work some of the
problems. Suggestions for a financial calculator are: Texas Instruments BA II Plus/Plus
Professional) or Hewlett Packard 12C. You may use these calculators in CFA exams, if you wish
to pursue this program in the future.
10. You may choose to use present/future value tables, a calculator and/or Excel. Your calculator
should have at least the exponent and root functions. The instructor may not be able to assist
you with your calculator/tables. Make sure that you know how to use them. Also note that you
will not be allowed to share calculators/tables with others during an exam.

Academic Integrity:
Students in this course will be expected to comply with the University of Pittsburgh's Policy on Academic
Integrity. Any student suspected of violating this obligation for any reason during the semester will be
required to participate in the procedural process, initiated at the instructor level, as outlined in the
University Guidelines on Academic Integrity. This may include, but is not limited to, the confiscation of
the examination of any individual suspected of violating University Policy. Furthermore, no student may
bring any unauthorized materials to an exam, including dictionaries and programmable calculators.

Copyright Notice
Course materials may be protected by copyright. United States copyright law, 17 USC section 101, et
seq., in addition to University policy and procedures, prohibit unauthorized duplication or
retransmission of course materials. See Library of Congress Copyright Office and the University
Copyright Policy.

Classroom Recording
To ensure the free and open discussion of ideas, students may not record classroom lectures, discussion
and/or activities without the advance written permission of the instructor, and any such recording
properly approved in advance can be used solely for the student’s own private use. If the instructor
provides recording of sessions, such recording(s) are only for the use of the students registered for the
course. Sharing such recording(s) on any outside medium including but not limited to social media is not
permitted.

Study Guide:
1. You need to understand what you are studying, whether it is conceptual or analytical.
When you study, ask yourself such questions as:
i. What is the purpose of this concept or formula?
ii. Why is it important?
iii. How does the author demonstrate its importance?
iv. How does it fit with what you have studied so far either in this class or in an earlier
class?
2. I suggest that you read the lecture notes once before it is discussed in class and then read it
again after the topic is covered. Reading the material beforehand will greatly assist in
having meaningful discussions. If you are having trouble with a concept or problem, see the
instructor during regular office hours as soon as possible.

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Other Information:
A tentative course schedule is shown below. Note that this schedule may be modified as the semester
progresses as some topics take more or less time than anticipated. The examination dates will generally
not be changed. Supplemental readings and/or additional chapters from the textbook may be added or
deleted at a later date.

Course Schedule (Tentative):

Readings
Week No. Topic in BKM
1&2 Introduction and Review: Investments, Chpts. 1,2,3
Markets, CAPM
3 Portfolio Theory Chpts. 5,6,7,8
4 Equilibrium in Capital Markets Chpts. 9,10,11
5 Cont. Chpt. 12,13
6&7 Applied Portfolio Management Chpts. 4,24,25,26
8 Cont./Slack Chpts. 27,28
9 Fixed Income Securities Chpts. 14,15
10 Fixed Income Securities, Cont. Chpt. 15
11 Managing Bond Portfolios Chpt. 16
12 Managing Bond Portfolios, Cont. Chpt. 16
13 Optional Content (Time Permitting)
14 Final Exam Week

Important Dates:

No Date Event
1 Aug 30 Class starts
2 Dec 6 Last Day of Class
3 TBD Final Examination

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