FIN 352: Investment Management   -   Professor Dow

Part I – Investing Basics

The learning goals for this section are to understand the basic investing options and to be able to construct an investment portfolio using mutual funds.

Checklist Additional Readings

1. Understanding Investments
__ Reading: Jones, Chapter 1
__ Lecture:  What do investors do?
__ Lecture:  Investing as part of a personal financial plan.
__ Worksheet:  Reviewing percentages
__ I have my individual assignments sheet
     and stored it where I can find it.
__ I’ve registered at
     and written down my password.

A personal financial plan (worksheet)

Vanguard: Principles for Investing Success

Vanguard: Research Webpage

2. Investment Alternatives
__ Reading: Jones, Chapter 2
__ Lecture:
__ Lecture
__ Flash Cards on Quizlet , PDF
__ Problems: P2.1, 2.2, 2.4.
__ Assignment 1: Find information about a stock
__ Assignment 2: Find information about interest rates


3. Indirect Investing
__ Reading: Jones, Chapter 3
__ Lecture: How mutual funds work
__ Lecture: Getting information online.
__ Problems: CP3.1, 3.2, 3.4
__ Flash Cards on Quizlet, PDF
__ Assignment 3: An actively managed stock mutual fund.
__ Assignment 4: A bond fund

Vanguard: ETFs

Vanguard: ETFs vs Mutual Funds


4. Asset Allocation
__ Reading: The SEC's Beginner's Guide to Asset Allocation
__ Reading: My Notes on Asset Allocation
__ Reading: Jones, Chapter 8, pp. 212-221
__ Lecture:  Asset Allocation
__ Assignment 5: Investing goals and risk tolerance.
__ Assignment 6:  Asset allocation: The allocation.
__ Assignment 7:  Asset allocation: Choosing mutual funds
 Risk tolerance quiz for assignment 5
 Alternative risk tolerance quiz

Some webpages that offer simple rules about asset allocation:

"Lazy" Asset Allocation
AAII on Asset Allocation

Asset allocators (in order of increasing complexity). You will use the first one in assignment 6.

Iowa Public Employees' Retirement System

Other reading:

Vanguard: Constructing Diversified Portfolios
What Assets Count
AAII on Life-Cycle Funds