Lahore University of Management Sciences COURSE RERE!UISITE"S# ;r#nc#-les o" 5or-orate F#nance 5!URS* 6*2RNINC !U%5!>*S 756!8 U$on s%ccessf%& com$&etion of the co%rse' st%(ents sho%&( )e a)&e to* 1. Demonstrate un&erstan&#ng o" the nature an& o-erat#ons o" ca-#tal mar.ets an& tra&#ng o" secur#t#es an& other #nvestment veh#cles. 2. Demonstrate un&erstan&#ng o" the theoret#cal un&er-#nn#ngs o" #nvestment anal's#s an& -ort"ol#o conce-ts ?#th#n the conteAt o" mo&ern -ort"ol#o theor' an& #ts eAtens#ons. 3. Demonstrate un&erstan&#ng o" -roce&ures #nvolve& #n anal'+#ng #nvestment alternat#ves un&er con&#t#ons o" uncerta#n outcomes. 4. Demonstrate a--l#cat#on o" em-#r#cal ev#&enceB theoret#cal constructsB an& #ns#ghts "rom -ract#ce to manage #nvestments. 5. Demonstrate un&erstan&#ng o" the alternat#ve metho&olog#es to evaluate -ort"ol#o -er"ormance. /. Demonstrate .no?le&ge o" &er#vat#ve mar.ets an& #nstruments ?#th s-ec#al attent#on to the#r a--l#cat#on #n manag#ng -ort"ol#o r#s.. =. ;resent an& &e"en& the#r anal's#s e""ect#vel'B :oth #n oral an& ?r#tten "ormsB ?h#le ?or.#ng #n teams as ?ell as #n&e-en&entl'. 7Ceneral 6earn#ng Coal8 UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES
General Learning Goals & Obje!i"es Goal # $E%e!i"e &ri!!en an' Oral Co(()nia!ion Obje!i"e* Students will demonstrate efective writing and oral communication skills Goal + $E!,ial Un'ers!an'ing an' Reasoning Obje!i"e* Students will demonstrate that they are able to identify and address ethical issues in an organizational context. Goal - $ Anal.!ial T,in/ing an' Proble( Sol"ing S/ills Obje!i"e* Students will demonstrate that they are able to identify key problems and generate viable solutions. Goal 0 $ A11lia!ion o2 In2or(a!ion Te,nolog. Obje!i"e* Students will demonstrate that they are able to use current technologies in business and management context. Goal 3 $ Tea(4or/ in Di"erse an' M)l!i)l!)ral En"iron(en!s Obje!i"e: Students will demonstrate that they are able to work efectively in diverse environments. Goal 5 $ Un'ers!an'ing Organi6a!ional Eos.s!e(s Obje!i"e* Students will demonstrate that they have an understanding of Economic, olitical, !egulatory, "egal, #echnological, and Social environment of organizations. Major S1ei7 Learning Goals & Obje!i"es
Lahore University of Management Sciences Goal 8 9a: $ Progra( S1ei7 ;no4le'ge an' Un'ers!an'ing Obje!i"e* Students will demonstrate knowledge of key business disciplines and how they interact including application to real world situations. Goal 8 9b: $ Un'ers!an'ing !,e <siene= be,in' !,e 'eision>(a/ing 1roess 92or MGS Majors: Obje!i"e* Students will demonstrate ability to analyze a business problem, design and apply appropriate decision$support tools, interpret results and make meaningful recommendations to support the decision$maker In(icate )e&o+ ho+ the co%rse &earning o),ectives s$ecifica&&y re&ate to any $rogram &earning goa&s an( o),ectives- rogram Learning .oa&s an( O),ectives Co%rse Learning O),ectives Co%rse Assessment Item Coal 1 )*""ect#ve <r#tten an& !ral 5ommun#cat#on Stu&ents ?#ll :e g#ven a num:er o--ortun#t#es to &emonstrate the#r a:#l#t' to commun#cate e""ect#vel' "CLO /0# 5;B ;ro9ect ?r#te u- D -resentat#onB *Aams Coal 2 )*th#cal Un&erstan&#ng an& Reason#ng Coal 3 ) 2nal't#cal %h#n.#ng an& ;ro:lem Solv#ng S.#lls 2nal't#cal %h#n.#ng an& ;ro:lem Solv#ng S.#lls are an essent#al com-onent o" the course "CLO 12 0# 5;B Eu#++es an& eAams Coal 4 ) 2--l#cat#on o" In"ormat#on %echnolog' 2--l#cat#on o" #n"ormat#on technolog' #n "or ass#gnmentsB -ro9ects ;ro9ect ?r#te u- D -resentat#on Coal 5 ) %eam?or. #n D#verse an& >ult#cultural *nv#ronments Stu&ents ?or. #n grou-s "or grou- -ro9ects Crou- -ro9ect Coal / ) Un&erstan&#ng !rgan#+at#onal *cos'stems Develo- stu&entFs un&erstan&#ng o" the #nteract#on o" m#cro 7"#rm s-ec#"#c8 var#a:les ?#th the macro 7secur#t#es mar.etsB #n&ustr'B an& the econom'8 var#a:les 5;B ;ro9ect ?r#te u- D -resentat#onB *AamsB 3u#++es Coal = 7a8 ) ;rogram S-ec#"#c 4no?le&ge an& Un&erstan&#ng 2 &eta#le& #ntro&uct#on to the var#ous o" to-#cs #n Investments "CLO 123# 5;B 3u#++es an& eAams Coal = 7:8 ) Un&erstan&#ng the Gsc#enceH :eh#n& the &ec#s#on- ma.#ng -rocess .RADIN. BREA4U AND OLIC5 CLASS ROOM OLIC5 Atten(ence an( C&ass artici$ation* 167- Stu&ents are eA-ecte& to atten& all classes. I" 'ou are not -resent at the :eg#nn#ng o" a class or leave class
Lahore University of Management Sciences &ur#ng the sess#onB ?#thout #nstructorFs -r#or -erm#ss#onB 'ou ?#ll :e cons#&ere& a:sent "or the &a'. Stu&ents must rev#e? the ass#gne& mater#als #n a&vance o" the class #n or&er to contr#:ute mean#ng"ull' to class &#scuss#ons. 2 s#gn#"#cant -ort#on o" the course gra&e &e-en&s on the 3ual#t' an& level o" 'our #nvolvement an& #n-ut #n class &#scuss#ons. OLIC5 RE.ARDIN. E8AMINAIONS !UI99ES AND OT:ER .RADIN. INSTRUMENTS- There is a ;ero to&erance $o&icy " 9T# for any %n(esira)&e )ehavior or %n(eserving attem$t to im$rove yo%r gra(es (%ring the <%i;;es an( e=aminations- S%ch action can res%&t in cance&&ing yo%r e=amination $a$er- It may a&so res%&t in (isci$&inary actions )y Disci$&inary Committee- &ease caref%&&y +eigh in yo%r action>s costs an( )enefits an( a&+ays sho+ an ethica& an( mora& (e$ortment an( )ehavior a&+ays- !%i;"s# an( Assignments* ?67- Several unannounce& 3u#++es ?#ll :e g#ven on the ass#gne& mater#al &ur#ng the term. No ma.e-u- 3u#++es ?#ll :e g#ven. :o+ever' the &o+est <%i; gra(e inc&%(ing a ;ero for a misse( <%i; +i&& )e (isregar(e(- No shar#ng o" calculatorsB or an' hel- sheet :e allo?e&. %here ?#ll :e several gra&e& ass#gnments &ur#ng the term to re#n"orce "#nanc#al conce-ts an& to encourage usage o" s-rea&sheets such as *Acel #n -er"orm#ng "#nanc#al anal's#s. %he "ormat an& other re3u#rements ?#ll :e s-ec#"#e& :' the #nstructor. 2ll ass#gnments must :e su:m#tte& on the &ue &ate. 6ate su:m#ss#ons ?#ll not :e acce-te&. In a&&#t#onB non-gra&e& en&-o"-cha-ter -ro:lems ma' :e ass#gne& to st#mulate class &#scuss#ons. Mi(term E=amination* ?67 %he eAam#nat#on coul& :e m#A o" >5E short eAerc#se an& short eA-lanat#ons. There is a ;ero to&erance for any %n(esira)&e )ehavior to %n(eserving attem$t to im$rove yo%r gra(es (%ring the <%i;;es an( e=aminations- .ro%$ ro,ects ?@7( Stu&ents are re3u#re& to "orm teams o" 3-4 stu&ents 7&e-en&#ng on class s#+e8 :' sess#on 4 "or grou- tas.s. "i# Sector Re$ort( *ach grou- ?#ll select an #n&ustr' sector1su:sector an& -er"orm #n&ustr' an& "un&amental anal's#s o" at least 2 lea&#ng com-an#es #n that sector. %he sectors "or the anal's#s must :e a--rove& :' the #nstructor. %he sector anal's#s re-orts ?#ll :e &ue at the :eg#nn#ng o" the 2= th class sess#on. 6ate su:m#ss#ons ?#ll not :e acce-te&. 2 -eer evaluat#on "orm ?#ll :e -rov#&e& to evaluate contr#:ut#on o" each grou- mem:er. Iour -eer evaluat#on ?#ll #m-act 'our gra&e on the -ro9ect re-ort. "ii# Investment .ame* *ach grou- ?#ll :e entruste& ?#th the same amount o" #n#t#al #nvestment an& ?#ll :e as.e& to manage a -ort"ol#o o" stoc.s on :ehal" o" a cl#ent "or a certa#n amount o" t#me. ;ort"ol#o -er"ormance ?#ll :e evaluate& on the :as#s o" total return at the en& o" the game. "iii# Money Masters Re$ort( >ult#-le teams ?#ll :e ass#gne& an #nvestment GguruH "rom the >one' >asters to -re-are a :r#e" ?r#t-u- an& :e rea&' "or a -resentat#on on the ass#gne& -erson as -er the class sche&ule. %he -resentat#on shoul& "ocus on the #nvestment strateg#esB #nvestment #ns#ghts 7Dos an& DonFts o" #nvestments8B #nclu&#ng .e' -ersonal tra#ts. Stu&ents are encourage& to use the Internet to o:ta#n more current #n"ormat#on. AINAL E8AMINATION* ?@7- %he eAam#nat#on coul& :e m#A o" >5E short eAerc#se an& short eA-lanat#ons. Stu&ents ma' also eA-ect a 3uest#on or t?o "rom the ass#gne& re-ort or a case or a s#tuat#on anal's#s.
Lahore University of Management Sciences Ca&c%&ator Re<%irement* Iou ?#ll nee& a "#nanc#al calculator ca-a:le o" -er"orm#ng -resent value1"uture value "unct#ons. For eAam-leB %eAas Instrument 2 II meets these cr#ter#a. >an' other :ran&s are e3uall' su#ta:le "or th#s course. E8AMINATION DETAIL >#&term *Aam Ies1No( 5es 5om:#ne Se-arate( 2 NBA Durat#on( ? :o%rs ;re"erre& Date( CeeD E *Aam S-ec#"#cat#ons( F#nal *Aam Ies1No( 5es 5om:#ne Se-arate( NBA Durat#on( ? :o%rs *Aam S-ec#"#cat#ons( COURSE OFERFIECBSC:EDULE 6ecture1 >o&ule %o-#cs Recommen&e& Rea&#ngs !:9ect#ves1 2--l#cat#on Mo(%&e 1* Overvie+ of Investment Environment an( Management rocess Session 1 J Investments( ac.groun&s an& Issues J 2sset 5lasses an& F#nanc#al Instruments J 4> 5h 1B2 !verv#e? o" #nvestment env#ronmentB t'-e o" "#nanc#al mar.etsB an& #ntro&uct#on to the -ort"ol#o construct#on -rocess. Session ? J 2sset 5lasses an& F#nanc#al Instruments( Stoc. an& on& >ar.et In&eAes J 4> 5h 2 *Aam#ne the var#ous asset classesB #nstrumentsB an& un&erstan& the use an& construct#on o" mar.et #n&eAes. Session G J Funct#on#ng o" Secur#t' >ar.ets an& %ra&#ng >echan#sms J 4> 5h 3 Rev#e? the "unct#on#ng o" "#nanc#al mar.ets an& #ts .e' -la'ers. Session H J Funct#on#ng o" Secur#t' >ar.ets an& %ra&#ng >echan#sms J 4> 5h 3 Un&erstan& the tra&#ng -ract#ces #n stoc. eAchanges an& mechan#cs o" :u'#ng on marg#n an& short sell#ng.