THE
COLLEGE
OF WOOSTER
Department of Economics
Prof. J. Sell
Fall 2006
This course examines portfolio
theory. It attempts
to identify economically interesting characteristics of financial
securities
and to discuss these within the context of "packages" of securities
called portfolios. It is not a
course that will teach you how to get rich by beating the stock market.
The
laws of economics apply here as elsewhere. It is a course that will teach you how to use
economics
theories to your advantage by understanding them and applying them
appropriately. The course may be of interest to those who wish to make
economically sensible investments either for themselves or for their
employer.
It also provides information on the types of activities performed by
professional financial analysts and on the relationship between
financial
markets and the economy in general.
Each student is expected to send
me an
e-mail from
this
link by the end of
the
first week of classes to indicate that he/she has found and read this
document
and understands the expectations of the course.
To participate successfully in this
course,
it is essential that you have a good grasp of economic principles,
statistics,
and mathematics (Econ.
101, Econ. 210, and Math 104, 107, or 111 at Wooster or their
equivalent
elsewhere). These are prerequisites for this course. You should also
have a
firm grounding in present value theory such as that found in Business
Economics
119, 227,
or 250.
This course is conducted under the Code of
Academic
Integrity as printed in the "Scot's Key". Each of you is expected
to read this section by the end of the first week of class. Any
questions concerning
the Code's applicability to this course should be addressed to me. Any
work
that you submit for evaluation must be your own work, done
independently.
Otherwise, it will be considered plagiarism and dealt with
appropriately. This may include a
grade of "F" on the assignment or for the course and additional
penalties
specified by the College. Your enrollment in this course beyond the
first week
certifies that you understand and accept the principles contained in
this
document as they apply to this course. If you are uncertain about this,
discuss
it with me by the end of the first week of class.
Course grades are interpreted
consistent with
the College Catalog and are determined on the basis of your performance
on
three examinations and a portfolio
project.
All examinations are cumulative. The two midterm examinations count 25%
of your
final course grade. The final examination counts 30% and will be given
on Thursday, December 14 at 9:00am. The
remaining
20% will be determined by your performance on a portfolio
project
described separately. There will be NO make-up exams. In the unlikely event that
you should miss a midterm examination
for a legitimate reason, the remaining examinations will count 40% each.
While class attendance is not
mandatory, it
is advisable since lecture material is not a simple summary of the
required
reading. If you choose to come to class,
I and your colleagues
expect you to
arrive on time and to remain for the entire class period. This class meets TTh from 9:30am to
10:50am. Time
should be spent on alternate days for your portfolio
project.
Please make use of my office hours
which are linked below.
Office,
office hours, contact methods.
revised by Jws on 15 August 2006.