Finance (FNCE) 401

Overview

This course is a comprehensive examination of the theories, methods and strategies required for successful investments in financial markets. The emphasis is to develop a good command of financial investment principles and methods, and to acquire an ability to make sound investment decisions. Major topics include financial instruments, portfolio theory, capital asset pricing model, market efficiency, financial securities analysis, derivative securities, and active portfolio management.

Outline

Unit 1: Introduction to Investments

• Lesson 1: The Investment Environment
• Lesson 2: Financial Markets and Instruments
• Lesson 3: Trading on Securities Markets

Unit 2: Portfolio Theory

• Lesson 4: Return and Risk: Analyzing the Historical Record
• Lesson 5: Risk Aversion and Capital Allocation to Risky Assets
• Lesson 6: Optimal Risky Portfolios

Unit 3: Equilibrium in Capital Markets

• Lesson 7: CAPM, Index Models, and Arbitrage Theory
• Lesson 8: Market Efficiency, Behavioural Finance, Technical Analysis, and Empirical Evidence

Unit 4: Fixed Income Securities

• Lesson 9: Bond Prices and Yields
• Lesson 10: The Term Structure of Interest Rates
• Lesson 11: Managing Bond Portfolios

Unit 5: Equities

• Lesson 12: Security Analysis
• Lesson 13: Financial Statement Analysis

Unit 6: Derivative Assets

• Lesson 14: Options and Other Derivatives
• Lesson 15: Option Valuation
• Lesson 16: Futures and Forward Markets

Unit 7: Active Portfolio Management and International Investing

• Lesson 17: Active Management and Performance Measurement
• Lesson 18: Managed Funds
• Lesson 19: International Investing

Evaluation

Your final mark for FNCE 401 will be calculated based on your performance on four assignments and a final examination. To receive credit for FNCE 401, you must achieve 50 percent on the final examination, and a course composite grade of at least “D” (50 percent). You are strongly encouraged to complete all four assignments—you will receive a zero (0) for any missed assignment. The weighting of each assessment activity is indicated in the chart below.

The examination(s) for this course will be written in the traditional pen and paper format.

To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.

Course Materials

Textbook

Registration in this course includes an electronic textbook. For more information on electronic textbooks, please refer to our eText Initiative site.

You can acquire a print version of the textbook on your own if you wish.

Other Resources

All other learning resources will be available online.

Challenge for Credit Course Overview

The Challenge for Credit process allows students to demonstrate that they have acquired a command of the general subject matter, knowledge, intellectual and/or other skills that would normally be found in a university level course.

Full information for the Challenge for Credit can be found in the Undergraduate Calendar.

• Undergraduate Challenge for Credit Policy
• Undergraduate Challenge for Credit Procedures

Challenge Evaluation

To receive credit for the FNCE 401 challenge registration, you must achieve a grade of at least “D” (50 percent) on the examination.

Paper Exam (3 hours)

Undergraduate Challenge for Credit Course Registration Form

• Challenge for Credit Form