Category Archives: Announcements

2020/2021 Finance, Insurance, and Real Estate Scholarship Application

The Finance, Insurance, and Real Estate department is accepting scholarship applications for the 2020/2021 academic year until March 1, 2020. Follow the link below to access the application for all scholarships as well as the separate Commercial Banking Scholarship application.

2020/2021 F.I.R.E. Department Scholarships

Please note that in order to be eligible for these scholarships, you must already be admitted to the business school and that Finance, Risk Management and Insurance, and/or Real Estate must be your declared major.

Portfolio Practicum Courses – About the Courses and How to Apply for the Fall 2020 Semester

Overview:

Baylor has two student-managed investment funds: A large-cap stock fund currently valued at approximately $9.5 million and a small-cap stock fund currently valued at approximately $760,000. Students in the Portfolio Practicum courses are directly responsible for managing the portfolios, while learning the techniques used by professionals to analyze and select individual stocks. Each student will also learn how to use Bloomberg, FactSet, Thomson Eikon and other resources commonly used in the investment management industry.

The Classes:

Small-Cap: Mondays, 2:30-5:00pm, for a total of 16 weeks spread across both the Fall and Spring semesters
Large-Cap: Mondays, 5:00-7:30pm, for the Fall Semester only
Location: Hodges Financial Markets Center
Structure: Designed after the format of a funds management firm and built around student participation.

Designed to cover two-semesters, the Small-Cap Practicum gives students experience researching, analyzing, and managing a portfolio of small capitalization (small-cap) stocks. The Fall course introduces equity research methods, including valuation, modeling, fundamental analysis, and cultivating resources. Student analysts, in teams, complete an initiation-of-coverage research report on a firm. Their research may require the team to talk to company management and to utilize various information sources including financial documents, trade associations, and competitors, customers, and suppliers of the firm. In the Spring, one team will compete in the CFA Investment Research Challenge, while other student teams will continue to research and present new opportunities for the portfolio.

The Large Cap Practicum is a one-semester course. The class structure is designed after the operational format of a funds management firm and is built around student participation. Specifically, two-person teams are assigned to cover each sector of the S&P 500. Although there are course readings, the course primarily consists of teams preparing and presenting to the class detailed reports on stocks in their sector. Every class member is involved in a discussion of each stock. Following the presentation and discussion, the team makes a recommendation on each stock. The class votes and the recommendations of the class are implemented.

For a better understanding of either course, you are welcome to sit through all or part of a class session this semester! Just go to the Financial Markets Center any Monday before 3:45pm for the Small-Cap course or before 5:00pm for the Large-Cap course, and let the professor know you are there.

Professors:

  • Brandon Troegle, CFA®, CAIA® is a Managing Director and portfolio manager with Hillcrest Asset Management, focusing on the firm’s securities selection and portfolio construction across various strategies. Before joining Hillcrest, Brandon held analyst roles at Morningstar and Bank of America.
  • David Morehead, CFA®, currently serves as Baylor’s Co-Chief Investment Officer. Previously, he spent nearly 20 years investing across a wide range of securities including bank loans and high yield/distressed investments, equity and equity-linked products, commodities, and derivatives. He has both sell-side and buyside experience from his time at Highview Capital, Ritchie Capital, William Blair, Bank of America, and First Trust Advisors.

How to Apply:

Complete the online application at https://www.baylor.edu/business/financialmarkets/apply.

In addition to the usual grades, contact, and background information you will need to provide:

  1. Statements of why you wish to take the course and your career plans/goals
  2. Description(s) of any investment and/or finance-related experience
  3. Uploaded copies of your current resume and current unofficial transcript

The deadline for submission is Noon, Tuesday, March 24.

Enrollment for each course is limited to 15 graduate and undergraduate business students with a minimum 3.2 GPA, a strong academic record and an interest in investments*. Applicants will be evaluated by a Finance faculty committee.


For More Information go to
: http://www.baylor.edu/business/financial_markets,

Friendly reminder about this week’s assignments in Finance 4335

Expected utility theory (EUT) is the foundation for decision-making under risk and uncertainty. Although EUT is elegant, a more practical framework that is logically consistent with EUT would be quite useful, and this is where the mean-variance and stochastic dominance models come into play. Essentially, the mean-variance and stochastic dominance models represent “special cases” of EUT, and as such, these models provide useful shortcuts to EUT.

Tomorrow, we will complete our coverage of the “Decision Making under Risk and Uncertainty” topic by focusing further attention on the so-called mean-variance model and introducing the stochastic dominance model.

Thursday’s class will be devoted to a review session for Midterm Exam #1, which is scheduled to occur in class on Tuesday, February 18. I highly recommend that students read the 2-page Finance 4335 Midterm 1 Synopsis prior to coming to class that day. I also recommend reviewing the various class problems and problem sets that have been assigned and midterm 1 from Fall 2019. After Thursday’s class next Thursday, I will post the solutions for problem set 4 and for Fall 2019 midterm 1 so that everyone will the opportunity to check their work on these assignments.

Finance 4335 Grades on Canvas

I have posted Finance 4335 numeric course grades to Canvas; the FIN 4335 grade book is at https://baylor.instructure.com/courses/108262/gradebook. To date, we have had five class meetings, three quizzes (two of which have been graded), the student survey, and two problem sets (one of which has been graded).   Each class attendance (absence) receives a grade of 100 (0); I assigned a grade of 100 for all surveys completed by January 16, and these grades appear under the Problem Set category, along with the graded earned on Problem Set 1. Since we have had no exams yet, I calculated the current (January 30, 2020) course numeric grade using the following equation:

(1) Current (January 30, 2020) Course Numeric Grade = (.10(Class Attendance) +.10(Quizzes) +.20(Problem Sets))/.4

Or course, equation (1) is a special case of the final course numeric grade equation (equation (2) below) which also appears in the course syllabus:

(2) Final Course Numeric Grade =.10(Class Attendance) +.10(Quizzes) +.20(Problem Sets) + Max{.20(Midterm Exam 1) +.20(Midterm Exam 2) +.20(Final Exam),.20(Midterm Exam 1) +.40(Final Exam),.20(Midterm Exam 2) +.40(Final Exam)}

As the spring semester progresses and I continue to collect grades in the attendance, quiz, problem set, and exam categories, then the course grade on Canvas will dynamically incorporate that information on a timely basis for each student. After I record midterm 1 grades, I will apply equation (3) below (also a special case of equation (2) above) to determine your numeric course grade at that point in time:

(3) Course Numeric Grade after Midterm 1 = (.10(Class Attendance) +.10(Quizzes) +.20(Problem Sets) +.20(Midterm 1))/.6

After I record midterm 2 grades, I will apply equation (4) below (also a special case of equation (2) above) to determine your numeric course grade at that point in time:

(4) Course Numeric Grade after Midterm 2 = (.10(Class Attendance) +.10(Quizzes) +.20(Problem Sets) +.20(Midterm 1) +.20(Midterm 2))/.8

After I record final exam grades, I will use equation (2) above to determine your final course numeric grade, and (as also noted in the course syllabus), the final course letter grade will be based upon the following schedule of final course numeric grades:

A 93-100% C 73-77%
A- 90-93% C- 70-73%
B+ 87-90% D+ 67-70%
B 83-87% D 63-67%
B- 80-83% D- 60-63%
C+ 77-80% F <60%