Syllabus

FIN 4103: Investments — Spring 2026

1 Course Sections

Section Time Location
003 TR, 3:00 PM – 4:15 PM Price Hall 3020
005 TR, 10:30 AM – 11:45 AM Price Hall 3030
006 TR, 4:30 PM – 5:45 PM Adams Hall 0104

2 Instructor and Contact Information

Instructor: Mihai Ion
Email: mion@ou.edu
Office Hours: By appointment (Adams Hall 3284)

3 Course Description

In FIN 4103 you will be introduced to the fundamental principles of investments management. The course is designed to provide you with the theoretical framework and the analytical tools needed to make sound investment decisions. Broadly speaking, the major topics covered will include: the risk-return tradeoff, optimal asset allocation, security selection (valuation), derivative securities, portfolio performance evaluation, and active portfolio management. The computational aspects for each topic will be showcased using Microsoft Excel and Generative AI coding agents.

4 Course Format and Teaching Methods

Lectures will be held in person. All lecture notes can be found on the course website:

https://ionmihai.github.io/ouinvest/

The lecture notes will contain both an explanation of the material, as well as the quantitative examples (with solutions) used to showcase the material. Students are expected to read the material for a given lecture prior to class. During class, we will explore the new material by working through practical applications where all computations are performed using Excel, so please make sure you bring a laptop to class with Excel installed.

5 Course Objectives

The topics covered in this course were chosen with the objective of developing your understanding of sound investment practices. These topics fall into the following broad categories:

5.1 Foundations of Investments

  • Calculating holding-period returns
  • Annualizing returns (APR and AER)
  • Adjusting for inflation (real vs nominal rates)
  • Average returns (arithmetic and geometric average)
  • Volatility of returns (variance, standard deviation, correlation, and covariance)
  • Excess returns, risk premia, and risk aversion
  • Sharpe ratios

5.2 Portfolio Theory

  • Understanding the mechanics of portfolio returns, portfolio volatility and diversification
  • Optimal capital allocation decisions
  • Optimal risky portfolios (tangency portfolios)
  • Optimal asset allocation decisions

5.3 Asset Pricing Models

  • The Capital Asset Pricing Model (CAPM)
  • The Fama-French Three Factor Model

5.4 Valuation

Bond Valuation:

  • Bond pricing
  • Yield to maturity
  • Understanding bond risk exposure

Stock Valuation:

  • Multiples valuation
  • Dividend discount model
  • Discounted cash flow model

5.5 Stock Options

  • Call options and put options
  • Option pricing: The Black-Scholes model
  • Risk management with options

5.6 Portfolio Performance Evaluation

  • Treynor measure
  • Jensen’s alpha
  • Information ratio

5.7 Active Portfolio Management

  • Treynor-Black model

6 Expected Learning Outcomes

After completion of the course, students should:

  1. Have working knowledge of data analysis best-practices using Excel and Generative AI coding agents
  2. Be able to calculate holding period returns, means and standard deviation of returns for individual stocks and portfolios of stocks
  3. Understand the process of asset allocation and calculate optimal risky portfolios
  4. Understand the CAPM and multi-factor models, and use them to estimate cost of capital
  5. Be able to explain the concept of market efficiency, systematic and idiosyncratic risk
  6. Be able to calculate prices, yields, and interest rate risk for bonds
  7. Be able to calculate intrinsic value of stocks using dividend models, multiples and discounted cash flows
  8. Be able to calculate payoffs, profits, and prices for call options and put options
  9. Understand the practical difficulties associated with actively managing a portfolio (e.g. imperfect forecasts, extreme portfolio weights)
  10. Be able to perform data analysis using Generative AI coding agents and critique their outputs effectively

7 Course Communications

Announcements will be made through Canvas. If you have questions outside of class times and office hours, please email the instructor and he will try to get back to you within 24 hours during weekdays or the following Monday for questions asked over the weekend.

8 Texts or Readings

The textbook for this course is: Investments (11th Edition), by Bodie, Kane and Marcus (BKM for short).

The textbook is NOT mandatory to buy; though I highly recommend it, especially if you are interested in pursuing a career in finance. You are allowed to use different editions of the book, but you are responsible for checking if chapters match with the edition we use for this class.

9 Required or Special Materials

You will need a working computer and an internet connection to participate in the data-analysis part of the lectures and for your exams. For exams, you will be asked to perform computation-intensive tasks that cannot be performed by hand. For this purpose, you will have to use Excel. It is your responsibility to make sure you have access to Excel during exams, as well as a reliable internet connection.

10 Assignments and Examinations

The final grade for the course will be based on three exams and quizzes. 

  • Quizzes: You will be assigned a reading for almost every class (check the “Schedule” tab on the course website to see which classes have assigned readings). Prior to each of these classes, you will have to complete a short quiz (in Canvas) that tests your understanding of the material you were required to read. 

    • For each student, I will drop the two quizzes with the lowest grade

  • Exams are in class, and will be administered through Canvas (as Quizzes). Exam times are as follows:

    • Exam 1: February 19, 2026 (in class)
    • Exam 2: April 2, 2026 (in class)
    • Exam 3 (Final): May 12 for 3:00 PM section, May 13 for 10:30 AM section, May 15 for 4:30 PM section
Important
  • Exams will contain multiple choice questions from the material covered in class
  • You will need to use Excel to answer some (most) of the exam questions
  • There will be no makeup exams. If you have a valid excuse to miss one of the exams, the weight of that exam will be split between the remaining two exams.

11 Final Examination

The final exam is Exam 3 mentioned above. Unlike exams 1 and 2, the final is cumulative.

12 Grading Scale and Policies

Your final grade will be calculated as follows:

Component Weight
Quizzes 10%
Exam 1 25%
Exam 2 25%
Exam 3 (Final) 40%

Letter grades will be assigned as follows:

Grade Criteria
A Final grade of 90% or more, or final grade ranks in the top 35% of the class
B Final grade of 80% or more, or final grade ranks in top 85% of the class
C Final grade of 70% or more, or final grade ranks in the top 95% of the class
D or F Final grade below 70%. Evaluated on a case-by-case basis depending on the effort the student put in the course

13 Scheduled Topics/Activities

The list of topics below is subject to change. You will be notified if significant changes are made. The “BKM Chapters” column indicates the chapters from the textbook (Investments, by Bodie, Kane and Marcus) covering the material we use in each lecture.

Date Lecture Topic BKM Chapters
Tuesday, January 20, 2026 1 The Investment Environment 1
Thursday, January 22, 2026 2 Foundations of Financial Markets 2, 3, 4
Tuesday, January 27, 2026 3 Measuring and Comparing Returns 5
Thursday, January 29, 2026 4 Measuring Risk and Expected Return 5
Tuesday, February 3, 2026 5 Portfolio Risk and Returns 6, 7
Thursday, February 5, 2026 6 Optimal Capital Allocation 6, 7
Tuesday, February 10, 2026 7 Mean-Variance Portfolio Optimization 6, 7
Thursday, February 12, 2026 8 Optimal Asset Allocation 6, 7
Tuesday, February 17, 2026 9 Review Session
Thursday, February 19, 2026 EXAM 1
Tuesday, February 24, 2026 10 Single-Index Model 8
Thursday, February 26, 2026 11 Treynor-Black Model 8
Tuesday, March 3, 2026 11 Treynor-Black Model 27
Thursday, March 5, 2026 12 CAPM 9, 13
Tuesday, March 10, 2026 13 Cost of Capital Estimation 10, 13
Thursday, March 12, 2026 14 Bond Pricing 14
Tuesday, March 17, 2026 NO CLASS – Spring Recess
Thursday, March 19, 2026 NO CLASS – Spring Recess
Tuesday, March 24, 2026 15 Bond Yields 14
Thursday, March 26, 2026 16 Bond Risk 16
Tuesday, March 31, 2026 17 Review Session
Thursday, April 2, 2026 EXAM 2
Tuesday, April 7, 2026 18 Valuation Using Multiples 18, 19
Thursday, April 9, 2026 19 Dividend Discount Models 18, 19
Tuesday, April 14, 2026 19 Dividend Discount Models 18, 19
Thursday, April 16, 2026 20 Discounted Cash Flow Analysis 18, 19
Tuesday, April 21, 2026 20 Discounted Cash Flow Analysis 18, 19
Thursday, April 23, 2026 20 Discounted Cash Flow Analysis 18, 19
Tuesday, April 28, 2026 21 Introduction to Options 20
Thursday, April 30, 2026 22 Option Trading Strategies 20
Tuesday, May 5, 2026 23 Option Valuation 21
Thursday, May 7, 2026 24 Review Session

14 Generative AI Policy

In this course, you are allowed to use Generative AI when learning, but not when you are being tested. More explicitly, you:

  • May use any Generative AI tools that you believe will enhance your understanding of the material covered in this course.
  • May NOT use any Generative AI tools during quizzes or exams.

If you have any questions about this policy, please talk with me.

14.1 Consequences for Violating the Generative AI Usage Policy

Any use of AI during any of the exams for this course will be considered a violation of the academic integrity policy.

15 Subject to Change Notice

Information contained in the course syllabus, other than the grade and absence policies, may be subject to change with reasonable advance notice, as deemed appropriate by the instructor of this course.

16 University Policies

16.1 Mental Health Support Services

Support is available for any student experiencing mental health issues that are impacting their academic success. Students can either been seen at the University Counseling Center (UCC) located on the second floor of Goddard Health Center or receive 24/7/365 crisis support from a licensed mental health provider through TimelyCare. To schedule an appointment or receive more information about mental health resources at OU please call the UCC at 405-325-2911 or visit University Counseling Center. The UCC is located at 620 Elm Ave., Room 201, Norman, OK 73019.

16.2 Title IX Resources and Reporting Requirement

The University of Oklahoma faculty are committed to creating a safe learning environment for all members of our community, free from sex-based discrimination, including sexual harassment, domestic and dating violence, sexual assault, and stalking, in accordance with Title IX. There are resources available to those impacted, including: speaking with someone confidentially about your options, medical attention, counseling, reporting, academic support, and safety plans. If you have (or someone you know has) experienced any form of sex-based discrimination or violence and wish to speak with someone confidentially, please contact OU Advocates (available 24/7 at 405-615-0013) or University Counseling Center (M-F 8 a.m. to 5 p.m. at 405-325-2911).

Because the University of Oklahoma is committed to the safety of you and other students, and because of our Title IX obligations, I, as well as other faculty, Graduate Assistants, and Teaching Assistants, are mandatory reporters. This means that we are obligated to report sex-based violence that has been disclosed to us to the Institutional Equity Office. This includes disclosures that occur in: class discussion, writing assignments, discussion boards, emails and during Student/Office Hours. You may also choose to report directly to the Institutional Equity Office. After a report is filed, the Title IX Coordinator will reach out to provide resources, support, and information and the reported information will remain private. For more information regarding the University’s Title IX Grievance procedures, reporting, or support measures, please visit Institutional Equity Office at 405-325-3546.

16.3 Reasonable Accommodation Policy

The University of Oklahoma (OU) is committed to the goal of achieving equal educational opportunity and full educational participation for students with disabilities. If you have already established reasonable accommodations with the Accessibility and Disability Resource Center (ADRC), please log into iAdvise to request your semester accommodations as soon as possible and contact me privately, so that we have adequate time to arrange your approved academic accommodations.

If you have not yet established services through ADRC, but have a documented disability and require accommodations, please complete ADRC’s pre-registration form to begin the registration process. ADRC facilitates the interactive process that establishes reasonable accommodations for students at OU. For more information on ADRC registration procedures, please review their website. You may also contact them at (405)325-3852 or adrc@ou.edu, or visit www.ou.edu/adrc for more information.

Note: disabilities may include, but are not limited to, mental health, chronic health, physical, vision, hearing, learning and attention disabilities, pregnancy-related. ADRC can also support students experiencing temporary medical conditions.

16.4 Religious Observance

It is the policy of the University to excuse the absences of students that result from religious observances and to reschedule examinations and additional required classwork that may fall on religious holidays, without penalty. [See Faculty Handbook 3.15.2]

16.6 Final Exam Preparation Period

Pre-finals week will be defined as the seven calendar days before the first day of finals. Faculty may cover new course material throughout this week. For specific provisions of the policy please refer to OU’s Final Exam Preparation Period policy.

17 Emergency Protocol

17.1 Severe Weather

If you receive an OU Alert to seek refuge or hear a tornado siren that signals severe weather:

  1. Look for severe weather refuge location maps located inside most OU buildings near the entrances.
  2. Seek refuge inside a building. Do not leave one building to seek shelter in another building that you deem safer. If outside, get into the nearest building.
  3. Go to the building’s severe weather refuge location. If you do not know where that is, go to the lowest level possible and seek refuge in an innermost room. Avoid outside doors and windows.
  4. Get in, Get Down, Cover Up
  5. Wait for official notice to resume normal activities.

Additional Weather Safety Information is available through the Department of Campus Safety.

17.2 Active Threat Guidance

The University of Oklahoma embraces a Run, Hide, Fight strategy for active threats on campus. This strategy is well known, widely accepted, and proven to save lives. To receive emergency campus alerts, be sure to update your contact information and preferences in the account settings section at one.ou.edu.

RUN: Running away from the threat is usually the best option. If it is safe to run, run as far away from the threat as possible. Call 911 when you are in a safe location and let them know from which OU campus you’re calling from and location of active threat.

HIDE: If running is not practical, the next best option is to hide. Lock and barricade all doors; turn off all lights; turn down your phone’s volume; search for improvised weapons; hide behind solid objects and walls; and hide yourself completely and stay quiet. Remain in place until law enforcement arrives. Be patient and remain hidden.

FIGHT: If you are unable to run or hide, the last best option is to fight. Have one or more improvised weapons with you and be prepared to attack. Attack them when they are least expecting it and hit them where it hurts most: the face (specifically eyes, nose, and ears), the throat, the diaphragm (solar plexus), and the groin.

OUPD Contact Information:

  • NORMAN campus: For non-emergencies call (405) 325-1717. For emergencies call (405) 325-1911 or dial 911.
  • TULSA campus: For non-emergencies call (918) 660-3900. For emergencies call (918) 660-3333 or dial 911.

17.3 Fire Alarm/General Emergency

If you receive an OU Alert that there is danger inside or near the building, or the fire alarm inside the building activates:

  1. LEAVE the building. Do not use the elevators.
  2. KNOW at least two building exits
  3. ASSIST those that may need help
  4. PROCEED to the emergency assembly area
  5. Once safely outside, NOTIFY first responders of anyone that may still be inside building due to mobility issues.
  6. WAIT for official notice before attempting to re-enter the building.