FIN 366P Financial Analyst Program - KammDocument Transcript
FIN 366P: FINANCIAL ANALYST PROGRAM
Fall 2005 Practicum
Instructor: Dr. Kamm, Department of Finance, GSB 5.124C
Instructor Office Hours: 1 - 2:30 Tuesdays and by appointment (TTH best)
T.A.: Scott Pittman, MBA Student and MBA Fund Manager
T.A. Email: Scott.Pittman@mba06.mccombs.utexas.edu
T.A. Office Hours: To be announced
Sections 02805, 02810, and 02815: Room available 8-9:30 TTH, UTC 1.130
Class Time: Independent Study (Group and Individual) w/ Professor & MBA Guidance
On-Line Course Notes: Overheads, Assignments, etc. (www.utexas.edu/cc/blackboard/)
Portfolio Simulation: Stock Track / start Sept. 27 / choice for individual work.
Reference Textbook: Financial Modeling by Simon Benninga (2nd edition, MIT press)
Web Sites: http://bevo2.bus.utexas.edu/mbafund/active.htm; www.thomson.com/financial
In the fall term of the senior year, students in the Financial Analyst Program take the
Finance Practicum which is conducted primarily as an independent study / finance
internship. The fall term of the senior year is an extension of the applied investment
management component of the F.A.P. that students first began in the spring term of the
junior year. In teams, senior FAP students should continue to monitor fund holdings and
add value in their role as research assistants via a stock pitch and / or industry report. In
addition, students will advance their application of finance theory by undertaking an
independent research paper on an individual or partner basis. Suggested topics are either
a portfolio management simulation or advancing your modeling knowledge based on a
chapter from the textbook. Finally, in the fall term of the senior year students shall
submit a proposal regarding their volunteer role in the spring term of the senior year. See
below for details regarding these various assignments.
Final grades will be determined as follows:
Stock Pitch / Industry Report to Support MBA Funds (Group Paper) 30%
In the spring term of the junior year, each group wrote a stock pitch paper (about 10
pages plus exhibits) and presented their pitch. During the practicum each group shall
write another stock pitch and present it to the MBA Research Director (and your other
fund managers.) If MBA Managers prefer, they may ask you to write an industry
analysis. At the beginning of this term, talk to your Research Director. Ask whether the
Manager prefers an industry analysis or a stock pitch. If doing a stock pitch, ask the
Research Director for a suggestion or present your own idea for a pitch and ask for
approval. Let me know within the next few weeks your agreed topic (industry or stock
and which stock). The paper will be evaluated on the strength of financial analysis and
how well it is written. MBA Managers will evaluate the presentation portion and give me
their feedback through the Manager evaluation form. As in previous terms, the paper
should be around 10 pages written plus as many exhibit pages.
Independent Study Paper (Individual or Partner Paper) 35%
The individual or partner paper is an independent study that demonstrates the student’s
ability to advance his or her understanding of investment theory particularly in regard to a
current finance problem. The paper should be in the form of: a portfolio management
simulation, a case study, or a research paper. Suggested Topics are:
• Portfolio Simulation using Stock Track – Start Monday, September 27
• Portfolio Modeling Paper Based on Chapters 7 and 8 of the Text
• Case Study on Option Pricing Based on Chapter 14 and CBOE web site
• Other Student Proposed Topic such as bond valuation, IPO, etc.
The portfolio simulation project in Stock Track is recommended for most students,
especially if your career interest lies in trading, energy, or investment banking. Those
students who are not interested may consider a different topic. If written alone, the
independent study paper should be about 7 pages written plus approximately 7-10 exhibit
pages. If written with a partner, the paper should be about 10 – 12 pages long plus
Please note: You are prohibited from submitting the same paper for this independent
study and another class. Follow university rules regarding academic honesty.
Proposal for Spring 2006 Term (Group Work) 10%
Each group shall outline their role for the spring term. Various groups can volunteer in
different ways in terms of mentoring and assisting junior FAP’s. Though the volunteer
component is not large enough in the spring term to warrant academic credit, you do get
credit this term and it is important that you plan ahead and outline your role. Areas you
can select and work on include:
• Assist Professor with Development of Day-Long Junior FAP Boot Camp.
• Prepare power-point presentation on Growth Fund & Present It.
• Prepare power-point presentation on Value Fund & Present It.
• Prepare power-point presentation regarding career paths & present it.
• Update and Improve FAP Guide for Interview Questions.
• Collect and Present FAP Resume Examples.
• Student Proposed Topic.
Participation-- Professor Evaluation, MBA & Peer Review (Individual) 25%
To determine this portion of the grade, the Professor first runs a “starting point” average
based on the previous three categories. Then she combines the “starting point” average
with her assessment of your overall effort and participation. Included in this component
is feedback from your peers and feedback from the MBA Investment Fund managers. So
long as your overall group effort is solid, you will receive at least your “starting point”
average and may receive up to a 3 point curve for this component. The vast majority of
students do very well in terms of participation. On occasion, due to senioritis or some
other mitigating factor, a student fails to contribute in an equitable fashion to group work
or other practicum commitments. In that rare circumstance, the student does not receive
the starting point average and may be asked to withdraw from the group and the program.
Timeline of Practicum
September 1. Resume contact with your MBA Fund Managers / Select Stock Pitch
2. Choose Topic for Independent Study Paper (Stock Track starts Sept. 27)
3. Sign up for Spring Proposal
October 1. If not using Stock Track, submit alternative 1-page proposal for
independent study paper by October 1.
2. Continue Trading in Stock Track.
3. Submit Stock Pitch or Industry Paper if possible by End of October.
November 1. Continue Trading in Stock Track.
2. Submit Work on Spring Proposal by end of November.
December 1. Turn in independent study paper the last class day.
2. Fill out peer evaluation Forms.
3. Plan, if possible, to arrive day before classes start to meet juniors at
FAP boot camp.
Information Regarding Scholastic Dishonesty, Student Privacy & Program
I. Scholastic Dishonesty – I follow university policy on scholastic dishonesty and include
for your benefit a review of the Policy Statement on Scholastic Dishonesty for the
McCombs School of Business. In the case of the financial analyst program, you will
have access to analyst and other research reports via first call and I caution you against
using such reports inappropriately. You are encouraged to read and reference such
reports but you must write your own work and demonstrate independent thought. The
statement says, “By teaching this course, I have agreed to observe all of the faculty
responsibilities described in that document. By enrolling in this course, you have agreed
to observe all of the student responsibilities described in that document. If the
application of that Policy Statement to this class and its assignments is unclear in any
way, it is your responsibility to ask me for clarification. Policy on Scholastic
Dishonesty: Students who violate University rules on scholastic dishonesty are subject to
disciplinary penalties including the possibility of failure in the course and / or dismissal
from the University. Since dishonesty harms the individual, all students, and the integrity
of the University, policies on scholastic dishonesty will be strictly enforced. You should
refer to the Student Judicial Services website at http://deanofstudents.utexas.edu/sjs/ or
the General Information Catalog to access the official University policies and
procedures on scholastic dishonesty as well as further elaboration on what constitutes
II. Class Web Sites and Student Privacy: Please know that I use Blackboard to post your
course packet and relevant course documents and I use egradebook to post grades where
each student in the class is able to check his or her grade privately. I also use the email
list provided me in Blackboard to send out occasional class emails. From the Fall 2001
Course Schedule the following paragraph may help you determine any related privacy
issues. It states, “Password-protected class sites will be available for all accredited
courses taught at the University. Syllabi, handouts, assignments, and other resources
are types of information that may be available within these sites. Site activities could
include exchanging email, engaging in class discussion and chats, and exchanging files.
In addition, class e-mail rosters will be a component of the sites. Students who do not
want their names included in these electronic class rosters must restrict their directory
information in the Office of the Registrar, Main Building, Room 1. For information on
restricting directory information, see
Membership in Financial Analyst Program: Due to the applied investment aspect of the
financial analyst program, there is a much higher level of responsibility on the part of
each member. Students are encouraged to work together within their teams and across
teams to help ensure a successful and rewarding year. Please contact me if you are
having any difficulties. If a student is not able to meet the obligations and
responsibilities of the research assistantship in the spring term, I shall contact said
student to discuss various alternatives including withdrawal from the program.