Course Location: Off Campus/Online

Course Dates: 01/09/23-05/04/23

Instructor: Xiaomin Guo, Ph.D., CFP®

Office: LPH 439

Phone: 727-873-4264 (For this special period due to COVID-19, please contact my cell 302-229- 2618.)

Email: guox@usf.edu (mailto:guox@usf.edu)(Please contact me through your USF email account. This can help reduce spam and I cannot provide educational record information to any other email    addresses for the sake of privacy protection.)

Virtual Office Hours: Available online Monday and Wednesday, 9:30-11:00am through email, phone, and Canvas; other times by appointment.

I. Welcome!

This is a Principles of Investments class intended to provide you with an understanding of theory and practice of investment management. The course is designed to cover common stocks, government   and corporate bonds, financial options, risk management, mutual funds and portfolio management.   You will learn the concepts of risk and return in the context of portfolio management.

II. Course Description

This course is a survey of the risks and returns of investment media in relation to the investment      objectives of individual and institutional investors. This course includes an examination of the capital markets, information flows, and analytical techniques in terms of their impact on the valuation           process. 3 credit hours.

PREREQ: FIN 3403 with a minimum grade of C.

III. Course Purpose

This course is a required major core course for finance major, personal finance major, and global business major with finance concentration.

This course will provide you with a strong foundation in financial management and investments. You will be required to have a working knowledge of the basic concepts in finance. The course format is an interactive lecture and you will be called upon to answer questions about the course material.

This course is intended to broaden and deepen the student’s understanding of the issues involved in the investment activities of individuals and institutions. Emphasis is given to the study of risks and    returns associated with investments found in the capital market. The financial markets are noted for  their volatility, and students will gain experience about fluctuating security values by building and      managing a small portfolio.

The course will also cover theoretical and applied valuation methodologies. An investment simulation project spanning the semester will provide students with a market-based experience to issues and    topics discussed in class. Students will make trades on the different financial securities discussed in class and their “wealth” will be exposed to the volatility of the financial markets.

IV. Course Topics and Learning Outcomes

This course is intended to cover the following topics:

Financial instruments

The trading of securities

Mutual funds, other investment companies

Risk and return

Efficient diversification of securities

Pricing theory, such as Capital Asset Pricing Model

The efficient market hypothesis

Bond prices and yields

Macroeconomic and industry analysis

Financial statement analysis

Behavioral finance and technical analysis

Equity valuation

Derivatives

Portfolio management

At the end of this semester, students should be able to:

Explain the role of the investment manager and client in the process of setting investment policy. Explain the concept of asset allocation and its role in investment management.

Identify and describe markets for debt, equity and other securities.

Distinguish between different types of securities’ trades and describe the characteristics of each. Compute average returns and risk-adjusted returns for portfolios from time-series data.

Analyze manager performance using modern portfolio theory tools.

Identify and describe alternative approaches to investing in common stocks.

Analyze potential common stock investments using modern valuation techniques. Identify and explain the components that are included in the risk premium on bonds.

Describe the structure and performance of investment companies such as mutual funds and

ETFs.

Explain the relationship between modern portfolio theory, the CAPM and beta.

Explain the importance of "market efficiency" and its implications for investment managers. Utilize technology for security analysis and portfolio management.

V. Required Text(s) and Course Materials

Textbook: Bodie, Kane and Marcus, Essentials of Investments, 11th edition, McGraw-Hill. ISBN: 978- 1-26-001392-4 (Hardcover, paperback, loose leaf, digital, international older versions are all              acceptable. Feel free to pick whichever works better for you. In the university bookstore, I ordered     11th edition.)

Investment simulation via Investopedia.com. Sign up at the following link:

https://www.investopedia.com/simulator/ (https://www.investopedia.com/simulator/) and join the    stock trading game USF SP FIN4504 23S.                                                                                             Course is constructed into 11 modules. All course material will be distributed and available on             Canvas. Please refer to each module for related course material, including video lectures, slides,       lecture notes and study guides. Please note that each module serves as the prerequisite of the next module. Study guides work as a supplement to the lecture contents for students to practice       both theories and applications. No work needs to be submitted but students are required to study and work on all the questions on the study guides in order to better understand the entire course material and to be prepared for all assessments.                                                                                                  There will be several in-class (from online lectures) practices/applications, so please equip your         laptop/computer with Excel so that you can practice as we illustrate anything in the lectures.               Microsoft Office installation program can be found through USF website:

https://software.usf.edu/microsoft-office-365 (https://software.usf.edu/microsoft-office-365) . Google Sheets and online version of Excel are also acceptable.

VI. Course Structure and Grading Policy

Please read this part carefully. This is important! Your final grade is based on the scores from tests, assignments, project, and extra credits if there are any. All individual scores will be available through “Grades” on Canvas. But please focus ONLY on the individual records instead of any percentage or total grade calculated by Canvas. It is NOT consistent with our grading policy. If you would like to know how many points you have accumulated, please follow our grading policy to compute yourself, or send me an email to check if you are not sure about your calculation.

1. Participation

The course is designed with the idea that you will attend modules online, participate in activities and  provide instant feedback, as this is the only way to process huge amount of new information               efficiently in the limited time available for this course without face-to-face interaction. Students are fully responsible for managing time effectively, planning ahead and following course schedule and instructions in a timely fashion. Asking relevant questions and making use of office hours will  go a long way to making the class a success for everyone. Please stay in touch with Canvas, pay great attention to updates, follow the course schedule and respond instantly to better manage your time. 1 point will be taken away for each deadline you miss.

First Day Class Attendance

It is the USF System policy that students are required to attend the first day of class. Students who    are absent on the first day of class will be dropped automatically from class. In this online course, you are required to finish Module 0 (Introduction) to learn about the details of the course structure,            grading policy, etc. and complete Quiz 0 at the end of Module 0 by the end of Wednesday, 1/11.   Students are offered unlimited attempts for Quiz 0 to test their online Honorlock quiz environment       and computer settings. Completing Quiz 0 will be serving as the First Day Attendance record. Quiz     0’s score is NOT counted towards the final grade. But 1 extra credit will be offered if the student scores 10 points in Quiz 0 by the deadline . Failure to complete Module 0 or Quiz 0 on time will       lead to an automatic drop from the course, or failure to continue the modules after. After this               deadline, students are fundamentally responsible for knowing the registration status of the course on schedule. Students having extenuating circumstances beyond their control who are unable to complete Module 0 must notify the instructor or the department before the deadline to request waiver of the First Day Class Attendance requirement.

2. Tests

There will be 6 closed-book tests throughout the entire semester that cover everything taught in       lectures. At the end of each (or every two) module, there is a test associated with it (them). In each  test, multiple choices questions, filling in the blanks, short answer questions, true or false questions, etc. may be asked. The tests are not cumulative and students are allowed to spend 60 minutes to    finish each test. The 6 tests weigh 71 points in total. Partial credit is given for most problems, so      students are encouraged to show all your work. Formulas will be provided during tests. Students may use their own calculators and scratch papers, but electronic devices other than the

laptops/tablets students are using to take the test are prohibited during the test unless for special       needs. Any improper behavior will be recorded and reported by Canvas. Make-up tests after the deadline are only permitted for serious and documented circumstances, and students need to notify the instructor BEFORE the deadline to request an extension.

All students must review the syllabus and the requirements, including the online terms and video       testing requirements, to determine if they wish to remain in the course. Enrollment in the course is an agreement to abide by and accept all terms. Any student may elect to drop or withdraw from this course before the end of the drop/add period.

Online exams and quizzes within this course may require online proctoring. Therefore, students will   be required to have a good working computer with a working webcam (USB or internal) and               microphone and a good internet connection when taking an exam or quiz. Students understand that  these remote recording devices are purchased and controlled by the student and that recordings       from any private residence must be done with the permission of any person residing in the residence.

To avoid any concerns in this regard, students should select private spaces for the testing. The University library and other academic sites at the University offer secure private settings for     recordings and students with concerns may discuss location of an appropriate space for the     recordings with their instructor or advisor.

Students must ensure that any recordings do not invade any third-party privacy rights and accept all responsibility and liability for violations of any third-party privacy concerns.

Students are strictly responsible for ensuring that they take all exams using a reliable computer and   high-speed internet connection. Setup information will be provided prior to taking the proctored exam. All exams for this course are proctored via Honorlock, an online tool. You need a webcam with           microphone (internal or external), your student ID, the Google Chrome browser, the Honorlock           extension, and a quiet private location with a reliable Internet connection. It is your responsibility to ensure these requirements are met. If you continue to experience technical issues, Honorlock        offers 24/7 technical support to students via email at [email protected], or phone at 844-243- 2500. If you are still having technical issues after contacting Honorlock support, you may contact the  USF Help Desk at 813-974-1222 or via email [email protected].

3. Assignments

In each module, students are required to complete an assignment in which several small questions    are asked based on the lecture videos in that module. These questions are designed to help students understand the lectures. Students have one week to complete each assignment and I will grade and  comment on your assignment submission after you finish it. So students are highly recommended to  finish each assignment earlier than taking a test in order to see my feedback and get better prepared for a test. Each assignment weighs 1 point. Throughout the semester, 11 assignments (for 11             modules) will be sent out, which weigh 11 points in total.

You are also required to complete an assignment regarding course experience to provide feedback  based on a couple of questions asked in the assignment. This is to better understand your needs,    help the entire class stay on track and provide instant support to those who need it. This assignment weighs 1 point and is due by the end of the 6th week of class.

4. Investment Simulation Project

The investment simulation project requires extensive understanding of both conceptual knowledge   and application of real investments. This project requires individual work doing stock trading              simulation with Investopedia Stock Simulator. Students are only allowed to trade stocks, ETFs and options. And students are required to include at least 2 stocks in their portfolio with a minimum of 5 trades and a minimum trading period of 12 weeks. Each student needs to register only one account with Investopedia Stock Simulator (https://www.investopedia.com/simulator/ () ). After registration, each student searches for the

game USF SP FIN4504 23S through https://www.investopedia.com/simulator/games/join-game () , and joins the game.

Game name: USF SP FIN4504 23S

Game period: January 9 – April 21, 2023

Starting fund: $1,000,000

Commission: None.

Margin interest: None.

Trading volume restriction: None.

Diversification restriction: None.

Minimum trades requirement: 5

Minimum trading period: 8 weeks

The report should include the following parts:

(1) Cover page. Show your name and account name.

(2) Trading overview: A brief introduction with a graph/chart clearly showing your profit/loss starting from the beginning to the end of the game period.

(3) Trading goals: A brief introduction of your goal(s) for the trading. If your goal(s) changes as the game progresses, state how and why it changes.

(4) Trading strategy: A full analysis showing how you construct your initial strategy, including your analysis on the underlying stock and reasonable projection.

(5) Trades analysis: A full report showing what happens to your profit/loss, how and why you change your trading strategy as the game progresses.

(6) Biggest winner and loser: Rank the performance of all the assets in your portfolio from the best to the worst. Identify the two stocks perform the best and the worst. Provide the reasons why you          include them in your portfolio initially. Comment on their performance and provide the reasons why they become the biggest winner/loser.

(7) Trading conclusions. Based on the entire trading experience, state what general factors lead to your profit/loss, the appropriateness of trading strategy and change, and the lesson you learn for   investments.

(8) Appendix. Attach a table showing your weekly profits and losses, any calculations supporting trading strategies you used, graphical depictions of your portfolio positions, data and information resources, etc.

The results of the trading should be written up in a formal report that does not exceed 10 pages of double-spaced 12 pt Times New Roman text (not including cover page or appendix). Set margins to 1’’ for top, bottom, left, and right. However, keep appendix to a reasonable length.

The project weighs 17 points and will be due at the end of the final week of class (11:59pm, Sunday, 4/30). Please submit the project report in word or pdf file through Canvas before the due date. Late   submission should be avoided and will be charged a penalty of 3 points per day.

5. Grading Scale

Your grade will be determined as follows:

Assessment Points

Tests (x6)                              71

Assignments (x11)                11

Mid-term feedback                1

Investment simulation           17

Extra credits                          0

Participation penalty             0

100

Grading Scale (points)

1/6/23, 4:15 PM

90-93.5

87-89.5

84-86.5

80-83.5

77-79.5

-

B+

B

-

C+

70-73.5

67-69.5

64-66.5

60-63.5

0-59.5

-

D+

D

-

F

Students can access their grades on Canvas anytime.

VII. How to Succeed in This Course

It is essential that you develop investment analysis processes. Developing good habits will be            important to having a successful career in investment management. Reading the required chapters in the textbook (if necessary), reviewing the slides after each class lecture, and performing all                assignments will be essential to your success in the class. Preparation is also part of your success in the investment world as it is in the (virtual) classroom, so come prepared with questions that are        relevant to the course material. Moreover, engaging with the professor on the topics covered in class will increase your skill set and knowledge base.

VIII. Course Policies

1. Email

Email relating to this course can only be sent to your USF email account. Students are responsible for checking emails every day to stay connected to this course. Instructor will respond to email       communication relevant to the subject matter within 24 hours of the date received.

2. Canvas

Course related notices, reminders, and important documents such as slides, study guides and test    keys will be distributed through Canvas. Students are responsible for checking Canvas every day to  stay connected to this course. If you need help learning how to perform various tasks related to this  course or other courses being offered in Canvas, please view the following videos or consult the Canvas help guides. You may also contact USF's IT department at (813) 974-1222 or help@usf.edu (mailto:help@usf.edu) .

Students are responsible for making sure that the electronic device and the settings are satisfactory to get access to all course material and taking the assessments.

4. Late Work Policy

Students who want to request an extension of deadline before it due to serious and documented circumstances can submit late work without getting participation penalty. Students who request an extension of deadline after it MAY be allowed to submit late work for credit, but participation penalty will be charged.

5. Rewrite/Test Retake Policy

Students are allowed to fix their assignment submission once after getting the instructor’s comments. But once a grade is granted, it will be final.

Unless a student is not able to finish a test due to technical reason, the student is not allowed to retake the test after the test is graded.

6. End of Semester Student Evaluations

All classes at USF make use of an online system for students to provide feedback to the University regarding the course. These surveys will be made available at the end of the semester, and the     University will notify you by email when the response window opens. Your participation is highly     encouraged and valued.

7. Mid-term Grade

A mid-term grade is required by the USF university system so that the university can catch the           learning progress to provide assistance to those who need it in time. It is not directly related to your final grade and will not show up on your transcript. Students are encouraged to use it as an indicator of performance to decide if you need to ask for instant help.

8. Extra Credits

1 extra point is offered if the student scores 10 points in Quiz 0 by the end of Wednesday, 1/11. No other extra credit will be offered outside classroom except for specially indicated.

9. Online Proctoring Syllabus Statement

All students must review the syllabus and the requirements including the online terms and video       testing requirements to determine if they wish to remain in the course. Enrollment in the course is an agreement to abide by and accept all terms. Any student may elect to drop or withdraw from this       course before the end of the drop/add period.

10. Electronic Plagiarism Detection

Students are hereby notified that the instructor intends to use electronic plagiarism detection services in this course. By registering for and participating in this course, students consent to their work being sent to, analyzed by and stored in any plagiarism detection service.

11. Copyrights

Students may use the materials distributed from the course (including but not limited to the slides, lecture notes, study guides, and tests, etc.) for self-study, but may not distribute, copy or sell these materials to others or on the Internet. No videos or photos can be taken in the classroom. Anyone found violating this policy will receive a failing grade for the course and/or be reported for further    proceedings with USF.

12. Campus Free Expression

It is fundamental to the University of South Florida’s mission to support an environment where divergent ideas, theories, and philosophies can be openly exchanged and critically evaluated. Consistent with these principles, this course may involve discussion of ideas that you find       uncomfortable, disagreeable, or even offensive.

In the instructional setting, ideas are intended to be presented in an objective manner and not as an endorsement of what you should personally believe. Objective means that the idea(s) presented can be tested by critical peer review and rigorous debate, and that the idea(s) is supported by credible    research.

Not all ideas can be supported by objective methods or criteria. Regardless, you may decide that certain ideas are worthy of your personal belief. In this course, however, you may be asked to     engage with complex ideas and to demonstrate an understanding of the ideas. Understanding an idea does not mean that you are required to believe it or agree with it.

IX. University Policies

1. 2022 COVID – 19 Protocols

For the most recent communication regarding COVID-19 protocols, please visit: https://www.usf.edu/coronavirus/ (https://www.usf.edu/coronavirus/) .

2. Academic Integrity

Academic integrity is the foundation of the University of South Florida’s commitment to the academic honesty and personal integrity of its university community. Academic integrity is grounded in certain   fundamental values, which include honesty, respect, and fairness. Broadly defined, academic             honesty is the completion of all academic endeavors and claims of scholarly knowledge as                 representative of one’s own efforts. The process for faculty reporting of academic misconduct, as well as the student’s options for appeal, are outlined in detail in USF Regulation 3.027 () .

3. Academic Grievance Procedure

The purpose of these procedures is to provide all undergraduate and graduate students taking           courses at the University of South Florida an opportunity for objective review of facts and events        pertinent to the cause of the academic grievance. An “academic grievance” is a claim that a specific   academic decision or action that affects that student’s academic record or status has violated             published policies and procedures, or has been applied to the grievant in a manner different from that used for other students.

4. Disability Access

Students with disabilities are responsible for registering with Students Accessibility Services (SAS) (SVC 1133) in order to receive academic accommodations. SAS encourages students to notify      instructors of accommodation needs at least five (5) business days prior to needing the                  accommodation. A letter from SAS must accompany this request. Please visit the

Student Accessibility Services website (https://www.usf.edu/student-affairs/student-accessibility)

for more information.

5. Disruption to Academic Progress

Disruptive students in the academic setting hinder the educational process. Disruption of the              academic process (USF Regulation 3.025 (https://usf.app.box.com/v/usfregulation3025) ) is           defined as the act, words, or general co