University of Waterloo

ACTSC 371: Introduction to Investments

Spring, 2016

Instructors: Keith Freeland, M3 2016, ext. 33356, keith.freeland@uwaterloo.ca

Surya Banerjee, M3 2017, ext 39120, surya.banerjee@uwaterloo.ca

Class Times: Lecture: 1:00-2:20 MW (MC 4061) (Keith),

8:30-9:50 MW (MC 4061) (Surya)
Tutorial: 1:30-2:20T (DC 1350) The tutorials are scheduled every two
weeks.

Course Webpage: learn.uwaterloo.ca

Office Hours: 09:00-11:00 Friday (Surya)
02:30-3:30 Monday (Keith)

Teaching Assistants: See course webpage for their names, email addresses and office hours

Course Evaluation: Four Tutorial tests (10% each): May 24th, June 7th June 21st and July 5th,
held during tutorial hours.

Final Exam: 60%

Syllabus: This course provides an introduction to
• Capital markets,
• Analysis of equity and fixed securities
• Derivative securities, including futures, forwards, swaps and
options.
References: • Investments (2014) by Bodie, et al. (8th Canadian Edition)
• Supplementary notes
• Other resources:
o investopedia.com

Notes:
1. If you miss three or more term terms (regardless of documentation) you will automatically receive a grade of
DNW. Therefore you should withdraw from the course.
2. Missed Term Tests/Final Exam: If you miss a test or final exam due to illness or extenuating
circumstances you must provide proper documentation to your instructor within 48 hours of the missed test
or final exam. In the case of illness you must provide a completed University of Waterloo Verification of
 Illness form. See: https://uwaterloo.ca/health-services/sites/ca.health-services/files/uploads/files/VIF-
online.pdf In the case of extenuating circumstances you must provide sufficient documentation to your
instructor to verify the circumstances. Missed term tests without proper documentation are
automatically awarded a grade of 0.
3. Remarking of Tests: If you have a question regarding the marking of a test you must first check the posted
solutions. If you still have a question then please write a clear question on a separate piece of paper, attach
it to your test and give it to the Head TA for the course. You have 7 days to appeal a test grade.
Weekly Schedule:

The following table gives a tentative schedule for the material covered:

Week Chapter Topics

Investment Environment
1, 2 (exclude
1. May 2 & Financial Markets and
2.5)
Instruments
Trading on Securities
2. May 9 3 Markets; Time value of
money
3, May 16 4 Return and Risk
Capital Allocation to
4. May 23 5, 7.1
Risky Assets & CAPM

Tutorial Test 1: May 24th 1:30-2:20

5. May 30 12 Bond Prices and Yields
The Term Structure of
6. June 6 13
Interest Rates
Tutorial Test 2: June 7st 1:30-2:20
Managing Bond
7. June 13 14
Portfolios;
Managing Bond
8. June 20 14
Portfolios
Tutorial Test 3: June 21 1:30-2:20
st

Equity Evaluation
9. June 27 16
Models; l

Options and Other

10. July 4 18
Derivatives Markets
Tutorial Test 3: July 5th 1:30-2:20
Option
11. July 11 18, 19.1- 19.3
Valuation
Futures,
12. July 18 20 Forwards, and
Swap Markets
University of Waterloo and Mathematics Faculty Policies
All instructors and students must follow the following academic policies:
Academic Integrity: In order to maintain a culture of academic integrity, member of the University of
Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility.
See: www.uwaterloo.ca/academicintegrity/ for more information.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an
academic offence, and to take responsibility for his/her actions. A student who is unsure whether an action
constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or
about “rules” for group work/collaboration should seek guidance from the course instructor, academic
advisor, or the undergraduate Associate Dean. For information on categories of offences and types of
penalties, students should refer to Policy 71, Student Discipline,
www.adm.uwaterloo.ca/infosec/Policies/policy71.htm.
See: www.adm.uwaterloo.ca/infosec/guidelines/penaltyguidelines.htm for guidelines for the assessment of
penalties.

Avoiding Academic Offenses: For more information on commonly misunderstood academic offenses and
how to avoid them, students should refer to the Faculty of Mathematics Cheating and Student Academic
Discipline Policy. See: http://www.math.uwaterloo.ca/navigation/Current/cheating_policy.shtml.

Grievance: A student who believes that a decision affecting some aspect of his/her university life has
been unfair or unreasonable may have grounds for initiating a grievance. See Policy 70, Student Petitions
and Grievances, Section 4: https://uwaterloo.ca/secretariat-general-counsel/policies-procedures-
guidelines/policy-70. When in doubt, please contact the department’s administrative assistant who will
provide further assistance.

Appeals: A decision made or penalty imposed under Policy 70 (Student Petitions and Grievances) (other
than a petition) or Policy 71 (Student Discipline) may be appealed if there is a ground. A student who
believes he/she has a ground for an appeal should refer to Policy 72 (Student Appeals).
See: www.adm.uwaterloo.ca/infosec/Policies/policy72.htm.

Mathematics Faculty INC Grade Policy: A grade of INC is awarded to a student who has completed
course work during the term well enough that they could reasonably be expected to earn a passing mark in
the course, but who was unable to complete end-of-term course requirements (usually the final exam) for
reasons beyond his or her control. See:
http://www.math.uwaterloo.ca/navigation/Current/inc.procedure.shtml.

AccessAbility Services:
AccessAbility Services, located in Needles Hall, Room 1132, collaborates with all academic departments to
arrange appropriate accommodations for students with disabilities without compromising the academic
integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability,
please register with the AccessAbility Services at the beginning of each academic term.