Financial Institutions and Markets Saunders and Cornett
Financial Institutions and Markets Saunders and Cornett document sample
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FINANCIAL MARKETS AND INSTITUTIONS BUS 468 - UNIVERSITY OF MICHIGAN-FLINT FALL SEMESTER 2006 Professor: Dr. Mark J. Perry Office: 4173 WSW Building (Inside 4166 WSW) Phone: 424-5413 email: firstname.lastname@example.org Office Hrs.: All the time Website: http://www.umflint.edu/~mjperry Prerequisites: BUS 361 Required Materials: Financial Markets and Institutions, 3rd Edition, by Saunders and Cornett Financial calculator (e.g. HP-10B II), Please review my “Calculator Keystroke Guide” on my course website as soon as possible. Recommended: Wall Street Journal subscription. Course Objective: This course provides an overview of the global financial system in which financial managers and investors operate. The purpose of the course material is to apply general finance concepts specifically to the management of financial institutions. We will examine the evolving structure and role of financial markets and financial institutions in providing financial intermediary services to the economy in the dynamic Information Age. Attention will be given to financial markets in the context of intense global competition, increased capital mobility and global harmonization due to the recent domestic and international deregulation of financial intermediaries. Additionally, the various forms of risks faced by financial intermediaries will be covered, with an emphasis on the risk management techniques available to managers of financial institutions like commercial banks. Grading Policy: With acceptable attendance, letter grades will be assigned according to the following adjusted, bonus grading scale: A 85-100%, B 75-85%, C 65-75%, D 50-65%, F 50% or less; otherwise students will be graded according to a traditional grading scale (A 90-100%, B 80-90%, etc.). Pluses and minuses will be given. Material Covered: Chapters 1-4, 6-11 and 19-23 in the textbook Graded Material: Midterm Exam I, Chapters 1-4 and 6-7 and 9 90 points Problem Sets (8 @ 15 points each) Please review guidelines on my website for preparing the Problem Sets 120 points Final Examination, Chapters 8, 10-11 and 19-23 (December 19) 90 points TOTAL 300 points Exams: Examinations will be a combination of multiple choice questions, short essays, T-F-U/explain essays, and problems. There may be extra credit points on the exams, but no other extra credit will be available. A study guide will be handed out one week before each exam. Website and Blackboard: I have a web site at: http://www.umflint.edu/~mjperry, which contains class materials including the syllabus, lecture notes, study guides, an email feature, and links to other web sites. There is also a Blackboard course website at: http://online.umflint.edu, where scores and grades will be posted. Attendance: Regular attendance is required, will be taken at each class, and will affect your grade as outlined above. To receive full credit for attendance, you will not be allowed to study or work on assignments for other courses during the lectures for BUS 468. TENTATIVE COURSE SCHEDULE Week 1 (8/31) Introduction and Chapter 1 - Financial Markets and Institutions Week 2 (9/5) Chapter 2 - Determinants of Interest Rates Problem Set #1 (Please prepare according to the “Guidelines for Problem Sets”) Week 3 (9/12) Chapter 3 – Interest Rates and Security Valuation, including Appendix 3B Problem Set #2 (Please prepare according to the “Guidelines for Problem Sets”) Week 4 (9/19) Chapters 6 and 7 - Bond Markets and Mortgage Markets Problem Set #3 (Please prepare according to the “Guidelines for Problems Sets”) Week 5 (9/26) Chapter 9 - Stock Markets, including Appendix 3A (Equity Valuation) Problem Set #4 (Supernormal Growth, Stock Index Arbitrage, and Currency Risk) Week 6 (10/3) Chapter 4 - Federal Reserve, Monetary Policy and Interest Rates Review for Midterm Examination Week 7 (10/10) Midterm Examination on Chapters 1 – 4 and 6-7 and 9, 90 points Week 8 (10/17) Go over Results from Midterm Examination Chapter 8 - Foreign Exchange Markets Problem Set #5 Week 9 (10/24) Chapter 10 - Derivatives Problem Set #6 Week 10 (10/31) Chapters 11 - Commercial Banks and Chapter 19 - Types of Risk Incurred by Financial Institutions Week 11 (11/7) Chapter 22 - Interest Rate and Insolvency Risk Week 12 (11/14) Chapter 23 - Managing Risk with Derivatives and Appendix 24A Problem Set #7 Week 13 (11/21) Chapter 20 - Managing Credit Risk (1 hour 15 minutes) Week 14 (11/28) Chapter 21 - Managing Liquidity Risk (1 hour, 30 minutes) Problem Set #8 (CH 20 and 21) Week 15 (12/5) Review for Final Examination (Last class meets on December 7) December 19 Final Examination on Chapters 8, 10-11, and Chapters 19-23 (90 points) 10:30 a.m. *** Note: Schedule is subject to change and announcements about changes will be made in class.