FINC626-EquityInvestments-Spring+2014-Efremidze-Syllabus-WED.doc

PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO SCHOOL OF BUSINESS AND MANAGEMENT Levan (Leo) Efremidze, PhD FINC 626 Equity Investments Spring 2014, Session A Wednesday 6:00 – 10:00 pm Malibu Campus SYLLABUS  Equity Investments FINC 626 Wednesday 6-10pm Malibu Campus, Beckman Mgmt Center, Classroom - P1 Levan (Leo) Efremidze, PhD Daytime voice: 310 531 3302 EMAIL: Levan.Efremidze@ Personal Email: Levan.Efremidze@ Office Hours: Tuesdays 4:30-5:30pm. ROOM 242 Course Description This course covers the analysis of equity contracts (bond investments class is now offered separately). Analytical methods and the theory underlying the evaluation of stocks, and some options based strategies for both short- and long-term performance are also studied. They are drawn from asset pricing theories, which study the valuation of uncertain future payments. Throughout the course we will incorporate topics from behavioral finance. The implications of market efficiency are included in the pragmatic analysis of the behavior of price changes through time in speculative markets. Also included is a discussion of appropriate measures of risk in the valuation of claims against the firm. Prerequisites: Full-Time - ACCT 602 Cost Accounting or equivalent and FINC 604 Managerial Finance or FINC 614 Finance and FINC 614b Advanced Financial Management. Fully Employed - FINC 655 Financial Management of the Firm or ACCT 500 Advanced Topics: Accounting and FINC 502 Advanced Topics: Finance. Many of reasons why financial markets may not always behave efficiently and why decision makers frequently failed to learn the lessons from earlier crises can be at least partially explained by contributions from the relatively new fields of research in behavioral and neuro economics and finance which focus on limitations of human cognitive abilities and the existence of biases that often occur in decision making. Combined with issues of limited and costly information, principal-agent problems, and the ex