BSBA in Investment Management

FINC 330: Theory of Finance

Theory of Finance is a required course for both Finance and Investment Management majors. A particular emphasis is placed on the theory behind constructing optimal investment portfolios and the implications this theory has for asset pricing. A second theme of the course is to examine why market prices are thought to be fairly priced or “efficient” versus the opposing view (behavioral finance) that questions investor rationality and, therefore, efficient market prices. Theory of Finance also serves as the introductory course to the Duquesne University Investment Center in which students become proficient in using Bloomberg, Compustat, Morningstar/Ibbotson and other financial applications.

Prerequisites: FINC 331 with a C or better
Credits: 3

INVM 310: Fixed Income Securities

Fixed Income Securities provides an overview of the financial system, including introductions to various types of financial markets, security market regulation, the concept of market efficiency and characteristics common to all financial assets. It presents the basic features of debt securities including various embedded option provisions. It presents relationships among bond prices, spot rates, forward rates and yields and introduces the fundamental notion of arbitrage pricing in the context of securities with fixed cash flows. It describes various ways to measure the risks of investing in fixed income securities and factors determining yield spreads. Additional coverage includes demand and supply analysis of bond yields, theories of the term structure of interest rates, asset securitization, and active and passive bond investment strategies.

Prerequisites: FINC 330 and FINC 333
Credits: 3

FINC 336: Security Analysis

This course provides an intensive study of the analytic techniques used to estimate the values of various publicly and privately issued financial securities. It provides an overview of the security valuation process, with an emphasis on equity valuation, as well as various types of valuation methods. Additionally, the course relates the concept of market efficiency to the valuation process. It presents the basic procedure of the top-down valuation approach including stock market-level analysis, industry-level analysis, and company-level analysis. It describes various ways to measure the risks of investing in financial securities and the factors affecting required returns. It describes in detail the Dividend Discount, the Free Cash Flow, Price Multiple/Relative Valuation, and the Residual Income Models.

Prerequisites: FINC 331 with a C or better
Credits: 3

FINC 338: Futures and Options

This course is designed to develop an understanding of futures, options and other derivative financial instruments. The main emphasis is on the reduction of asset and liability risk for business and financial institutions through hedging operations in debt and equity instruments, commodities and currencies. Students will have an opportunity to study actual market behavior through project analysis.

Prerequisites: FINC 330
Credits: 3

INVM 451: Fund Management I

Fund Management I is the first in the two-course capstone experience in the BSBA in Investment Management. In Fund Management, students take control of the Red & Blue Partners common stock portfolio as they strive to outperform the benchmark Russell 2000 stock index. Stocks selected for the portfolio are the result of in-depth analysis of small- and mid-cap companies. Individual company research forms the basis of all investment decision-making. During the semester, each student produces a detailed research report and investment recommendation on a company. Because Fund Management engages students in real investment decision-making with accountability to real investors, students are expected to demonstrate a high level of commitment to all Fund-related activities both in and out of class.

Prerequisites: FINAN 330, FINAN 336, and ACCTG 311/311H
Credits: 3

INVM 452: Fund Management II

Fund Management II is the second in the two-course capstone experience in the BSBA in Investment Management. In Fund Management I and II, students, as members of Red & Blue Advisors, take control of the Red & Blue Partners common stock portfolio. R&B Advisors strive to outperform their benchmark Russell 2000 stock index.

R&B Advisors invests in small- and mid-cap common stocks traded on US stock markets. In-depth company research forms the basis of all investment decision-making, so that common stocks selected for the R&B portfolio are the result of rigorous company analysis. R&B Advisors, working in Sector Teams, covers stocks in eight Economic Sectors defined by Standard & Poor’s Global Industrial Classification System (GICS): Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Information Technology, and Telecommunication Services.

Prerequisites: INVM 451
Credits: 3

ACCT 311: Intermediate Accounting I

This course covers the underlying principles, procedures and reporting requirements necessary to gain an understanding of both the preparation and the use of modern financial reports of profit-seeking entities. Primary topics include: the environment of financial reporting and the conceptual framework of accounting; a review of the accounting cycle; the balance sheet and notes to the financial statements (including contingencies, business segments and interim reports); the income statement, (including transitory, irregular and extraordinary items and comprehensive income); the statement of cash flows; earnings management; the revenue/receivable/cash cycle; and revenue recognition.

The Intermediate Accounting I course ties in directly to the department’s program learning goals in that it is intended to develop (1) sound technical knowledge that is necessary for entry-level positions (2) critical thinking skills (3) an understanding of the ethical responsibilities of the accounting profession and (4) communication and interpersonal skills that are expected of entry-level accountants.

Prerequisites: ACCT 214/214H and ACCT 215/215H
Credits: 3

ACCT 311H: Intermediate Accounting I (Honors)

Prerequisites: ACCT 214/214H and ACCT 215/215H
Credits: 3

ACCT 312: Intermediate Accounting II

This course covers the underlying principles, procedures and reporting requirements necessary to gain an understanding of both the preparation and the use of modern financial reports of profit-seeking entities. Primary topics include: inventory and cost of goods sold; debt financing; equity financing; earnings per share; investments in noncurrent operating assets – acquisition and utilization; leases; and investments in debt and equity securities.

The Intermediate Accounting II course ties in directly to the department’s program learning goals in that it is intended to develop (1) sound technical knowledge that is necessary for entry-level positions (2) critical thinking skills (3) an understanding of the ethical responsibilities of the accounting profession and (4) communication and interpersonal skills that are expected of entry-level accountants.

Prerequisites: ACCT 311/311H
Credits: 3

ACCT 312H: Intermediate Accounting II (Honors)