Institutional Curricular Goals:Touro CollegeDepartment: BusinessCourse: Investment PrinciplesCourse number: EBF 210Prerequisites: Corporation Finance (EBF 220)Credit hours: 3Developer: Dr. Kenneth S. BigelLast Update: December 5, 2003Course Description:This is an advanced course in the Finance track. By now, the student should know well that Finance requires a facility with mathematics, especially algebra. This course will also rely heavily on "The Time Value of Money." Investment Principles is divided into two modules: 1. Fixed Income Valuation and Analysis and 2. Equity Valuation, Portfolio Management, and Market Efficiency. After each segment there will be an objective quiz, the nature of which will be explained as the semester progresses. There will also be regular homework assignments, which will be handed in and graded. The homework assignments are noted in the schedule below and are due on the session following the assigned dates. Lastly, there will be a final examination. The apportionment of grades is delineated within the Semester Schedule below.Course Objectives:- Students will demonstrate high-level analytic and quantitative skills by means of detailed problem solving- Students will also exhibit interpretative abilities, given qualitative scenario analyses. They will be expected to articulate their analyses in both verbal and written presentations- Students will demonstrate initiative and pro-activity in completing assignments, in following the markets, and in selecting additional (i.e., not assigned) readings.Institutional Curricular Goals:- To further professional career interests in the field of finance- To develop critical reasoning skills- To foster problem-solving and data interpretation skillsCourse Content:This course will cover the critical analytic theories of investment in traditional securities, i.e., stocks and bonds. As such, we will cover the mathematics of fixedincome instruments, the valuation of equities, and modern portfolio theory.Hardware/Software/Materials Requirements:The students will need a financial calculator. Students will also apply their solution to Microsoft XL.Course Requirements:- Students are required to maintain a binder or folder containing all materials handed out in class as well as any other materials that may otherwise be accumulated during the course of the semester. This must be brought to each session.- Students must bring a (simple) calculator to each class.- Students are expected to complete all assignments on a timely basis - as assigned. This means that students should complete the assigned readings before arriving to class. Students who do not keep up will quickly fall behind. Students will be held responsible for textual assignments not reviewed in class.- Homework assignments shall be due on the session after the assigned date. HW will be collected and graded.- Attendance is mandatory. Unexcused excessive absences (and latenesses) will result in a penalty to one's final grade. - Students must arrive to class on time. The door will be closed at the start of each session.- Cell-phones must be shut off during class. Cell-phone calculators (or any alpha-numeric calculator) are impermissible for exam purposes.- Students should verify all the calculations presented in this manual even though class time may be insufficient to examine the math - in detail - for all illustrations.Grading Guidelines:Objective quizzes - Modules One and Two 20% eachHomework submissions 21%Objective Final Examination 40%Total 101% (Really!)Methodology:This course will consist of lecture, discussion, assigned readings, and written assignmentsCourse Texts:Investments (2002), by Bodie, Kane, and Marcus. (McGraw-Hill Companies). ISBN: 0-07-2339160-0Optional texts: - Introduction to Investments, by Levy, Haim (South-Western Publishing)- Investment Analysis and Portfolio Management, by Reilly, F. K. and Brown, K., C. (Dryden Press)- Investment Analysis and Portfolio Management, by Cohen, J. B., Zinbarg, E. D., and Zeikel, A. (Irwin) Modern Portfolio Theory and Investment Analysis – by Elton & GruberBibliography:- de la Grandville, O. (2002). Bond Pricing and Portfolio Analysis: Protecting Investors in the Long Run (MIT Press).- Elton, E. J. & Gruber, M. J. Portfolio Theory and Asset Pricing.- Elton, E. J. & Gruber, M. J. Securities Prices and Performance.- Fabozzi, Frank. The Handbook of Fixed Income Securities.- Fabozzi, Frank. Fixed Income Mathematics.- Fabozzi, Frank (ed.). The Handbook of Fixed Income Securities- Fabozzi, Frank & Mann, Steven V. Introduction to Fixed Income Analytics- Gibson, Roger. Asset Allocation- Gordon, Myron. (1962). The Investment, Financing, and Valuation of the Corporation (Irwin, Homewood, IL).- Hagstron, Robert. Latticework: The New Investing.- Homer, Sidney & Leibowitz, Martin L. (1972). Inside the Yield Book: New Tools for Bond Market Strategy (Prentice Hall).- Macmillan. Options as a Strategic Investment.- Malkiel, Burton. A Random Walk Down Wall Street.- Markowitz, Harry. Portfolio Selection.- Michaud, Richard O. Efficient Asset Management.- Miller, Merton H. (2002). Selected Works of Merton H. Miller: A Celebration of Markets. Volume 1: Finance.- Shefrin, Hersh. Beyond Greed and Fear.- Shiller, Robert J. Irrational Exuberance.- Shleifer, Andrei. Inefficient Markets: An Introduction to Behavioral