Finance (Version 3.0) Inve$ting for the Future. Semester: Spring 2016 Course Reference: Room: AT 231 Time: 2:40-3:50

Size: px

Start display at page:

Download "Finance (Version 3.0) Inve$ting for the Future. Semester: Spring 2016 Course Reference: Room: AT 231 Time: 2:40-3:50"

Christopher Jordan
6 years ago
Views:

1 Finance (Version 3.0) Inve$ting for the Future Semester: Spring 2016 Course Reference: Room: AT 231 Time: 2:40-3:50 Course Instructor: Jonathan A. Scott Office/Office Hours: address: Office Telephone: Graduate Teaching Assistant: Edward Kim Peer Helper: Maria Mentzel Course Description: This class will teach you about seemingly complicated financial topics in an understandable manner that will help you make well-informed money decisions to ensure a secure financial future. We begin with identification of common financial problems among the young, fabulous and broke and how to think about addressing them. After addressing life and financial priorities, you will learn why retirement savings must be at the top of your list. We examine how to compute your retirement needs and how to get there, primarily with a focus on investing in the stock market. You will learn how to think smart about big ticket purchases such as cars, housing, and graduate/professional education. Finally we will make sure you understand how to create a safety net to protect your future. Fin 0822 fulfills the Quantitative Literacy (QL) requirement of the University s General Education Program for non-fox students only. The primary difference between this class and a typical personal finance class is our emphasis on understanding the mathematical tools used to assist in making the myriad of financial decisions you will face after you graduate. While many different financial calculators can be found on the internet, successful completion of this course will allow you to fully understand these tools. The course addresses the six learning objectives within the QL area: 1. Understand quantitative models that describe real world phenomena and recognize the limitations of those models (e.g., the behavior of stock prices in the short-run and long-run). 2. Perform simple mathematical computations associated with a quantitative model and make conclusions based on the result (e.g., determining the amount that must be saved each year to fund one s retirement using time value of money concepts). 1

2 3. Recognize, use, and appreciate mathematical thinking for solving problems that are part of everyday life (e.g., loan payments, cash back versus 0% interest for car loans, points versus no points for mortgage loans). 4. Understand the various sources of uncertainty and error in empirical data (e.g., introduction to standard statistical measures to describe risk and return and challenges of thinking ahead versus thinking historically). 5. Retrieve, organize, and analyze data associated with a quantitative model (e.g., asset allocation for StockTrak portfolio assignment). 6. Communicate logical arguments and their conclusion (e.g., the rent versus own decision for housing, the value of graduate or professional school). Textbooks and other course resources: 1. The Money Book for the Young, Fabulous, & Broke, Suze Orman, Penguin Group, ISBN , This book is a very fast read. Both of these books can be purchased through Amazon.com for under $20 each. 2. Top Hat: you will use this service through your phone to answer questions posed in class. 3. Other notes and web links will be posted to Blackboard. You should be automatically enrolled for the course. Student assistants: Edward and Maria are important resources that you should take advantage of during the semester. They have the primary responsibility for lab sessions. In addition, they will have office hours and will conduct special sessions outside of class hours as needed. Their schedule will be posted to Blackboard. Teaching Philosophy: I want you to become active in the learning process, not only absorbing facts, but finding, evaluating, and using financial information to empower you to address the major financial decisions you will face during your lifetime. I will periodically provide WebEx previews of many topics or provide outside videos (e.g. Kahn Academy) that I expect you to review before class. These reviews will be posted to Blackboard. Most classes will involve my presentation of the concept then have you pair up to address quantitative or qualitative questions using Top Hat. The day before each test there will be an opportunity for review of homework and concepts and I will use Class Capture for these classes. Finally, if you have a laptop you should bring it to class. Many of the exercises I do will be on the board first and then in Excel. Regardless of your career choice/aspiration, you need to be proficient in Excel, especially to verify what you see online. My philosophy in the class is trust what you find from online financial calculators but make sure you can verify the answers. Lab Sessions: With the exception of the short second week, there will be one lab class each week (mostly on Fridays, but one Monday, and several Wednesdays) conducted by Edward and Maria after I provide a short recap of the prior two days material. The lab class format will vary but will always provide you with an opportunity to work on weekly homework. 2

3 Course Grade: Your performance in the course is based on the following: 1. Exams (300 points or 60%): You will have four tests. Three will be given during the semester and the last one during finals week. You will be provided with a formula sheet. There are no make-ups unless there is an official University sanctioned event with the proper documentation. If you miss an exam I will re-weight your remaining test scores to equal 300 points. 2. Excel projects (50 points or 10%): You will have two excel projects (see Blackboard for more information). On Fridays we will be in AT 607 where you have access to netbooks. If you have your own laptop, then you can use it. 3. Stocktrack (50 points or 10%): You will have a $250,000 virtual portfolio to invest in stocks (individual companies or ETFs) between Friday, February 5 and Friday, April 29. Detailed directions will be posted to Blackboard 4. Homework (50 points or 10%): Homework will be assigned weekly and you will have an opportunity to start it (and possibly complete) during the lab times. Assignments will be submitted via Blackboard. 5. Attendance (50 points or 10%): This part of your grade is based on your responses to Top Hat questions posed during class. Each question is worth 1 point for answering and 1 more point for the correct answer. If you have read the material before class you will be able to successfully answer the question. The questions will be given at different times during the class. The final grade distribution is based on the following scale: A: 93% and higher; A-: 90-92%; B+: 87-89%; B: 83-86%; B-: 80-82%; C+: 77-79%: C: 73-76%; C-:70-72: D+: 67-69%; D: 63-66%; D-: 60-62%: F: below 60%. I will round up if your grade is above the.50% threshold. Incompletes: An "I" is granted if you have completed substantially all of the work in the course, but for some unforeseen reason you cannot finish the course. Note that you MUST sign a contract describing the remaining work that needs to be completed to achieve a letter grade. Attendance: Attendance will be taken via a TopHat question given during class beginning on January 20. We will have several practice rounds during the first week of class. See Attendance under Course Grade above. Academic Freedom: The University has adopted a policy on Student and Faculty Academic Rights and Responsibilities (Policy # ) which can be accessed through the following link: 3

4 Academic Integrity: Cheating is not tolerated and will result in a grade of 0 on any exam or homework assignment in which cheating occurs. Depending on the seriousness of the case, it may be forwarded to the Office of Community Standards and Student Contact for a formal judicial hearing. shtm Calculators: You are required to have a basic calculator that has exponential functions. You may use your phone calculator in class and for homework but you may NOT use it during the quizzes. If you have more advanced calculator applications, you may use finance applications but I will not devote class time to provide instruction. Please note that on the quizzes you will need to show the formula and enter the appropriate numbers to receive full credit. Answers with no supporting information will not receive full credit. Excel: Regardless of the career path you choose, you will encounter Excel and most organizations will expect you to have some familiarity with it. If you have never opened a spreadsheet do not panic. Maria will conduct an Intro to Excel workshop outside of regular class hours before you need to use it for your assignments. Preliminary Course Outline (subject to change based on class progress). Specific details on readings for each class, homework assignments, and Excel projects can be found on Blackboard Week Date Book Chapters 1 1/11 1/13 1/15 Class Overview After-tax pay Fico scores 2 1/18 (no class) 1/20 1/22 3 1/25 1/27 1/29 4 2/1 2/3 2/5 5 2/8 2/10 2/12 6 2/15 2/17 2/19 7 2/23 2/25 2/27 Work on HW#1 Credit card math Lab (AT 607): StockTrak intro; HW#2 Inflation and cost of living adjustment Constant dollar and inflation-adjusted values Lab (AT 607): HW#3 Review Test #1 Simple versus compound interest Compounded growth rates and PV/FV APR and EAR; payday loans Lab (AT 607): Annuities: FV and PV Loan payments, amortization and unpaid balance Lab (AT 607): Student loan alternatives; HW #5 Auto financing I Auto financing II Test #2 4

5 8 3/14 3/16 3/18 Retirement I Retirement II Lab (AT 607): HW#6 9 3/21 3/23 3/ /28 3/30 4/1 11 4/4 4/6 4/8 12 4/11 4/13 4/ /18 4/20 4/ /25 4/27 4/29 Retirement III Social Security Lab (AT 607): HW #7 Roth vs. 401k Rent versus own Test #3 Risk and return in financial markets Brainstorm investment strategy/quartile analysis Lab: Excel #2 intro Asset Allocation #1 Asset Allocation #2 Lab (AT 607): HW #8 Quartile Asset Allocation #3 Active versus passive investing (handout) Lab (AT 607): Excel #2; HW#9 Psychology of investing HW#10 review Lab (AT 607): Excel #2 15 5/2 Your safety net: cash reserves, life insurance, renters insurance 5/yy Final Exam 5

Class Numbers: & Personal Financial Management. Sections: RVCC & RVDC. Summer 2008 FIN Fully Online

Class Numbers: & Personal Financial Management. Sections: RVCC & RVDC. Summer 2008 FIN Fully Online Summer 2008 FIN 3140 Personal Financial Management Fully Online Sections: RVCC & RVDC Class Numbers: 53262 & 53559 Instructor: Jim Keys Office: RB 207B, University Park Campus Office Phone: 305-348-3268