Baruch College

The City University of New York Investment Analysis

FIN 3710
Investment Analysis:
The objective of this course is to provide a rigorous and an integrated
framework for understanding the mechanism of financial investment. The
course prepares students to work in the investment industry (money
manager, security analyst, investment banking) and to gain invaluable
perspective into their own investing and financial planning.
The course will emphasize intuition and insight, as well as rigorous
analysis in order to foster students’ interest and skills in applying financial
theory to practical applications. The materials to be covered include the
following areas: financial markets, securities trading, financial analysis of
Course Description common stocks, modern investment theory and its applications and option
markets and evaluation.

Prerequisite classes for the course:

Minimum requirement: Fin 3000. Finance is very mathematical and the
course draws heavily from students’ knowledge learned in the introductory
finance, accounting and statistics courses. If you have not taken these
courses, it is a virtual certainty that you will have great difficulty in this one.
Knowledge of MS Excel spreadsheet is also a must.

Instructor: Wei Simi, Ph.D

Email: wei.simi@baruch.cuny.edu

Classroom: Online: zoom

Class hours: Tuesday/Thursday 2:30pm – 3:45pm

Office hours: Tuesday/Thursday 1:30pm -2:30pm (by appointment)

Notice This course syllabus is subject to change.

Course Learning Goals

Assurance of Learning
Analytical Skills Students will possess the analytical and critical thinking skills to
evaluate issues faced in business and professional careers.
Technological Skills Students will possess the necessary technological skills to analyze
problems, develop solutions and convey information.
Communication Skills: Students will have the necessary oral communication skills to convey
Oral ideas and information effectively and persuasively.
Communication Skills: Students will have the necessary written communication skills to
Written convey ideas and information effectively and persuasively.

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The City University of New York Investment Analysis
Civic Awareness and Students will have the knowledge base and analytical skill to guide
Ethical Decision- them when faced with ethical dilemmas in business. Students will have
making an awareness of political, civic and public policy issues affecting
business.
Global Awareness Students will know how differences in perspectives and cultures affect
business practices around the world.
Proficiency in a Single Students will possess a deep understanding of and intellectual
Discipline competence in at least one business discipline.

Required Materials
Text Book ESSENTIALS OF INVESTMENTS, Ninth (or later) Edition, co-authored by
Z. Bodie, A. Kane, and A.J. Marcus, published by McGraw-Hill Irwin,
2013.

Textbook’s website address: www.mhhe.com/bkm

All other materials will be on Blackboard. Please check Blackboard
every day.

Calculator A financial calculator is necessary for this class. We will have

quantitative financial questions that require the use of a financial
calculator. HP-12 C and Texas Instruments BA II Plus are good choices
(You do not need to buy the professional version). You MUST bring
your own financial calculator to exams. If you are not willing to purchase
a financial calculator or you forget it on an exam day, remember that the
calculators are available to borrow from the library.

Optional financial INVESTORS BUSINESS DAILY (US), WALL STREET JOURNAL (WSJ) (US),
newspapers: FINANCIAL TIMES (London), and BARRONS (US) are four good weekday
financial newspapers.

Course Structure and Policies

Class Sessions Class sessions combine
• Topic lectures
• Discussions
Homework Homework will be assigned on conect.com. Remember you must submit
your answers to receive the credit. Late homework will not be accepted.
No extensions will be given.

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The City University of New York Investment Analysis
Exam Policies 1. Midterm will be given online and will be related to recent studies. The
midterm is 75 minutes.
2. Final exam will not be cumulative.
3. Exams will be given in different versions. Each time you only need to
answer one of the different versions.
4. Exams will be in multiple choices.
5. The exams will be on Blackboard. The system will generate random
questions from a large pool of questions for midterm exam and final
exam, respectively. Therefore, the exam will be difficult and different
from one another.
6. If you are late for the exam, you will still have to turn in the exam at
the regular exam ending time. The system will be automatically shut
down. Students who login late more than 30 minutes are not able to
take the exam. If you miss an exam, you can only take the make-up
exam if you provide a ‘valid document proof.’ The make-up exam will
generally be harder than the one you miss.

CLASS I believe very strongly that the level of class participation has a direct
PARTICIPATION correlation to the learning, motivation and enjoyment and learning of the class
and reflects what you have learned during the semester. Consequently, I have
awarded it 10.00% of your total class points. I will grade you based on my
assessment of your participation in class discussions, class participation…that
means speaking up in and contributing to class discussions.
Learning in this class is related to your willingness to expose your insights
and viewpoints to the judgment of your classmates. Thus, each one of you is
expected to contribute to class discussions in terms of both quality and
quantity. This includes preparing for class by reading the text and relevant
articles or cases, as well as presenting your analyses, opinions, or summaries
of material covered in class.
If you are uncomfortable speaking in front of others, I encourage you to try;
my classroom is known as a risk-free forum where one feels free to express
their ideas. To assist you in this, some of the class work will be in smaller
groups prior to full class discussion.
Please muted your smart or cell phones, computers or I Pads during
class at any time. However, you can raise hands in zoom for answering
questions.

Attendance Attendance will account for 10% of your grade. I will allow for three
absences. Any pre-approved absence will not be included in these three
times. You need to email me before class to get approved. Each additional
absence will lower your grade by 2% until you lose all 10% of your
attendance grade. Late absence excuses will not be accepted. If you miss
a considerable amount of the classes, I will treat it as a factor of your
grade

(Note: Zoom has reports on participations.)

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The City University of New York Investment Analysis
Other Polices 1. Blackboard and email will be used primarily for announcements.
Please check your email and Blackboard frequently to keep in pace
with the class.
2. Class documents will be available on Blackboard.

Suggestions Please pass criticisms and suggestions directly to Professor Simi via
solicited: word, anonymous note, e-mail, private appointment, or whatever.

Grading Policies
Homework 10%
Attendance 10%
Midterm 40%
Final Exam 40%
Total 100%

Consent to recording:

Students who participate in this class with their camera on or use

a profile image are agreeing to have their video or image recorded
solely for the purpose of creating a record for students enrolled in
the class to refer to, including those enrolled students who are
unable to attend live. If you are unwilling to consent to have your
profile or video image recorded, be sure to keep your camera off
and do not use a profile image. Likewise, students who un-mute
during class and participate orally are agreeing to have their
voices recorded. If you are not willing to consent to have your
voice recorded during class, you will need to keep your mute
button activated and communicate exclusively using the "chat"
feature, which allows students to type questions and comments
live.
Online Proctoring System: By the time of this class’s midterm or final exams, CUNY faculty might
be given access to an online proctoring system. If we are, we plan to make use of the system for
our final (and/or midterm) examination. All members of the class will be asked to turn on their
web cameras in order to take the exam(s).

Chapters Covered
Chapter 1 Investments: Background and Issues
Chapter 2 Asset Classes and Financial Instruments
Chapter 3 Securities Markets
Chapter 5 Risk, Return, and the Historical Record
Review Class Chapters 1-5
Midterm Exam Chapters 1-5 and any materials discussed during class sections
Chapter 6 Efficient Diversification

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The City University of New York Investment Analysis
Chapter 7 Capital Asset Pricing and Arbitrage Pricing Theory
Chapter 8 The Efficient Market Hypothesis
Chapter 9 Behavioral Finance and Technical Analysis
Chapter 10 Bond Prices and Yields
Chapter 11 Managing Bond Portfolios
Review Class Chapters 6-11
Final Exam Chapters 6-11 and any materials discussed during class sections

Academic Integrity
The Department of Economics and Finance fully supports Baruch College's policy on Academic
Honesty, which states, in part:
Academic dishonesty is unacceptable and will not be tolerated. Cheating, forgery,
plagiarism and collusion in dishonest acts undermine the college's educational mission
and the students' personal and intellectual growth. Baruch students are expected to bear
individual responsibility for their work and to uphold the ideal of academic integrity.
Any student who attempts to compromise or devalue the academic process will be
sanctioned.
Additional information can be found here.
Any infringement of this rule will be treated as a serious violation of Academic Integrity. Any
suspected academic dishonesty in this regard will result in a grade of F on the exams and most
likely an F in the course as well. Students should also understand that a report of suspected
academic dishonesty will be sent to the Dean of Students’ office and becomes a permanent part
of the student’s file.

Students with Disabilities and Other Special Needs

Students with disabilities are supported in their academic studies by Baruch College’s
Office of Services for Students with Disabilities according to their Mission Statement:

The Office of Services for Students with Disabilities exists to provide reasonable
accommodations to students with disabilities to ensure they have equal access to the
college’s programs and services. Through student intake, faculty consultation, and
outreach to the community, students can develop interpersonal, social, vocational and
emotional growth.

Students who feel that they may need a reasonable accommodation based on a disability should
contact the staff at the Office of Services for Students with Disabilities, Newman Vertical
Campus, Room 2-271, or by phone at (646) 312-4590. More information is available on their
website here.

Assurance of Learning Chart

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The City University of New York Investment Analysis

Significant Moderate Minimal Not

Learning Goals Part of Part of Part of Part of
Course Course Course Course

Analytical Skills

Technological Skills

Communication Skills: Oral

Communication Skills: Written

Civic Awareness and Ethical

Decision-Making

Global Awareness

Proficiency in a single discipline:

Economics

Great Books Suggested to Read:

Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the
financial System from Crisis--and Themselves Andrew Ross Sorkin, Viking Penguin, 2009

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing
Burton Malkiel, Norton, 2003

Irrational Exuberance Robert J. Shiller

When Genius Failed: The Rise and Fall of Long-Term Capital Management Roger
Lowenstein, Random House, 2000