Electives in Finance Area for PGDM2015-1

Electives in Finance Area for PGDM (General) - Year II:

Course Title: Investment Analysis & Portfolio Management

COURSE OBJECTIVEThe objective of this course is to introduce the student to both the theory and applications of Investment analysis and Portfolio management. The subject will give an in-depth insight into the techniques for valuation of securities and the management and control of portfolios of financial assets. Emphasis will be put on development of techniques that should be part of the tool kit of those interested in becoming professional investors and/or researchers in finance.

COURSE CONTENTSModule Session Topic/Reading

1. The Investment Spectrum

1-2 An overview of markets and instruments, various forms of investments, investment attributes, sources of investment uncertainties, approaches to investment decision–making, investment Style. Profile of Indian securities market, understanding trading systems in stock exchanges, rolling settlement, depository system and internet trading.

Reading:

Bodie, Kane, Marcus, Mohanty-Chapter 1, 2, 3, 4 Elton & Gruber-Chapter 1, 2, 3 Reilly, Frank K. & Brown, Keith C.- Chapter 1 Charles P. Jones(9th edition) -Chapter 1, 2,3, 4,5 www.bseindia.com www.nsdl.com www.nseindia.com www.icicidirect.com www.sebi.gov.in

Case: Warren E Buffet, 1995: Robert F. Bruner, Cases in Finance, Fifth Edition, pp.3-22.

2. Risk & Return 3 Classification of risk, relationship between risk and return,Reading:

Elton & Gruber-Chapter 4, 5, 6, 7 Bodie, Kane, Marcus, Mohanty-Chapter 5, 6, 7, 8, 9,

10, 11, 12 Sharpe, Alexander & Bailey-Chapter 9, 10, 11 Strong , Robert – A-Chapter 6, 7. Charles P. Jones(9th edition)- Chapter 6, 7, 8, 9

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http://www.sebi.gov.in/

http://www.icicidirect.com/

http://www.nseindia.com/

http://www.nsdl.com/

http://www.bseindia.com/

Module Session Topic/Reading

3. Efficient Markets

4-5 Efficient market theories, determinants of efficient market, strong, semi-strong and weak forms of market efficiency, Random Walk Theory and tests of market efficiency, Market anomalies. Empirical validation of asset pricing models and market efficiency, behavioral aspect in financial market. Investment strategies in efficient and inefficient markets.

Readings: Bodie, Kane, Marcus, Mohanty-Chapter 12 Elton & Gruber- Chapter 17 Sharpe, Alexander & Bailey-Chapter 4 Charles P. Jones(9th edition)-Chapter 12

4. Security Analysis

6 Fixed Income Securities: Bond prices and yields, term structure and valuation, fixed income portfolio management.

Readings: Charles P. Jones(9th edition)- Chapter 17, 18 Bodie, Kane, Marcus, Mohanty-Chapter 14, 15, 16 Sharpe, Alexander & Bailey-Chapter 5, 13, 14, 15 Strong, Robert – A-Chapter 13, 16Case Study: GMO: The Value v/s Growth Dilemma, Darden Business Publishing, William Barton

7-8 Fundamental analysis, Economy – Industry – Company framework, Equity Shares: Valuation models.Readings:

Frank K. Reilly & Edgar A. Norton-Chapter 11, 12, 13 Bodie, Kane, Marcus, Mohanty-Chapter 17, 18, 19 Charles P. Jones(9th edition)-Chapter 11, 13, 14, 15

Case Study: Mascom TelecomCase Study: Generation Investment Management, Harward Business Publishing Sandra J . Sucher; Daniela B Eyersdorfer, Ane Damgaard J E Nsen

9-10 4.4 Technical Analysis, basic tenets, tools, Dow theory, charts and trend lines, MACD and other models.Readings

TESTS OF TECHNICAL ANALYSIS IN INDIA. By: Sehgal, Sanjay; Gupta, Meenakshi. Vision (09722629), Jul2007, Vol. 11 Issue 3, p11-23, 13p, 6 charts; (AN 27024944)

Technical Analysis from A to Z by Steven B. Achelis. Donald E. Fischer & Ronald J. Jordan-Chapter 15 Charles P. Jones(9th edition)-Chapter 16

Case Study: TDL Electronics

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5.Portfolio Management

11-18 Portfolio objectives, construction, analysis, diversification and optimal portfolio choice, efficient frontier, Markowitz & Sharpe portfolio optimization, Characteristic line, Capital Asset pricing Model, Arbitrage Pricing Theory, Single Index & multi factor Models. Portfolio evaluation and revision, Portfolio protectionReadings:

Elton & Gruber-Chapter 3, 8, 9 & 22 Sharpe, Alexander & Bailey-Chapter 6, 7, 8, 23, 24 Charles P. Jones(9th edition)- Chapter 21, 22 Bodie, Kane, Marcus, Mohanty-Chapter 24, 25, 26, 27 Strong, Robert A.-Chapter 21, 22, 23

6. Project Presentations

19-20 Group Project Presentations

7. Self-Study Portfolio management practices in Indian & International context.Reading:Merbert B. Mayo-Chapter 22Stock Market Indices: Types, objectives, construction, revision, utility and limitations, growing role of floating index with special emphasis on Morgan Stanley Composite Index.Reading:Frank K. Reilly & Keith C. Brown-Chapter – 5Carry forward trading & its experience in Indian stock marketBullions & Real Estate-Nature, significance and impact on portfolio choice.

Course Title: Project Appraisal, Financing and Control

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COURSE OBJECTIVE:

The course aims at giving a broad understanding of project formulation, Project selection, project appraisal, project financing, and techniques of control. The course provides practical inputs on various aspects of project appraisal as well as norms and procedure of project finance. The students will be made familiar with practical aspects involved in preparation of comprehensive project reports, and appraisal and financing of projects.

COURSE CONTENTS:

Module No.

Session No./s

Topic & Reading/s

I 1-2 Conceptual FrameworkTypes of capital investmentsKey issues in investment decisionsStrategy and Resource AllocationMonitoring the environmentScouting for project ideasProject IdentificationPreliminary StudyProject FormulationFeasibility StudySteps in Preparation of Detailed Project Reports

Reading:Prasanna Chandra (2009): Projects Planning, Analysis, Selection etc, Ch 1, 2, 3

Selection of Project by each groupEach group to basically firm up its project (1. Name of the firm and 2. Nature of activity) by the end of the 2nd Session

II 3-4 Project Analysis:Analysis of the industry, market, demandAnalysis of the technical aspects of businessAnalysis of legal, banking and environmental factors of businessAnalysis of management factors of businessAnalysis of the financial estimates and projections of business

Reading:Prasanna Chandra (2009): Projects Planning, Analysis, Selection etc, Ch 4, 5, 6

III 5-9 Project Appraisal and evaluation:Appraisal and quantitative evaluation of market, industry, demand, macroeconomic, legal, banking, environmental, management and finance factors of businessAnalysis of projected financial information and parametersAnalysis of financial, economic, technical and other indicators

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Project Risk analysis, Risk Measurement, Risk Mitigation and Risk ManagementRisk-Return trade-offDegree of risk and investment decisionInvestment criteria, cost of capitalProject rate of returnSocial Cost Benefit AnalysisJudgemental, behavioural, strategic and organizational considerations

Readings:Prasanna Chandra (2009): Projects Planning, Analysis, Selection etc, Ch 8, 9, 10, 11, 12, 14, 17

IV 10-14 Project Finance:Risk Assessment and Credit Rating of ProjectPricing of the ProjectCapital StructureMenu of financingTerm loans and working capital advancesRaising venture capital in India and capital/loans abroadAnalysis of lending procedure and lending norms for Project FinanceFinancing of project from financial markets or/and lending institutions. Sanction, Documentation, Security creation and Disbursement of fundsReview of RBI/Commercial Banks/FIs guidelines of project finance

Recent TrendsLong term shifts in global investment and saving, farewell to cheap capital, emerging equity gap, global capital flows

Readings:

Prasanna Chandra (2009): Projects Planning, Analysis, Selection etc, Ch 18, 20McKinsey Global Institute (MGI) research papers

1. Farewell to cheap capital? The implications of long-term shifts in global investment and saving – December 2010

2. Mapping global capital markets 2011 – updated August 20113. The emerging equity gap: Growth and stability in the new

investor landscape – December 2011

Group Presentations of Project ReportsV 15-19 Project Implementation

Management of projectsProject planning, project control and human aspectsTime estimationDetermination of critical pathPERT & CPM models

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Readings:Prasanna Chandra (2009): Projects Planning, Analysis, Selection etc, Ch 21, 22

Case:Merck & Company: Evaluating a drug licensing opportunity (2000), Richard S Ruback and David Krieger, Harvard Business School Case published in “Case Problems in Finance” by Kester, Ruback & Tufano, Pages 371-76

Group Presentations of project appraisal reportsVI 20 Putting it all together

TEXT BOOK

Prasanna Chandra (2009), “Projects – Planning, Analysis, Selection, Financing, Implementation and Review”, Tata McGraw Hill 7th Edition

OTHER READINGS

Khatua, Sitangshu, (2011) “Project Management and Appraisal”, Oxford University Press, 1st

Edition

Jeffrey K, “project Management – Achieving Competitive Advantage”, Pearson Education 2009

Carkenord, Barbara A, “Seven steps to mastering business analysis”, Cengage Learning, 1 st

India Edition

Gatti, Stefano (2008), “Project Finance in Theory and Practice”, Academic Press, 1st India Edition

Kester, Ruback and Tufano (2007), ‘Case problems in Finance’, Tata McGraw Hill 12th Edition

Wysocki, Robert K, “ Effective Project Management: Traditional, Adaptive, Extreme, John Wiley & Sons, 4th Edition 2006

S. Choudhury, “Project Management”, Tata McGraw Hill 2004

Vishwanathan, R, “Industrial Finance” Macmillan 2003

McKinsey Global Institute (MGI) research papers

1. Farewell to cheap capital? The implications of long-term shifts in global investment and saving – December 2010

2. Mapping global capital markets 2011 – updated August 20113. The emerging equity gap: Growth and stability in the new investor landscape –

December 2011

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Course Title: Financial Derivatives

Course Objective:

Financial derivatives have become an indispensable part in today’s world. The purpose of this course is to give an overview of the fundamentals of derivatives. This course introduces financial derivatives, such as forwards, futures, swaps, and options. Application of these derivatives instruments in managing risk management, besides their pricing / valuation issues would be explored.

Course Contents:

Module No.

Session Nos.

Topics & Readings

1 1 Introduction to Derivatives Securities:

Forward Contracts; Futures Contracts; Options & Other Derivatives – Meaning & Differences; Types of traders; Uses of Derivatives; Role of Derivatives; Criticism of Derivative contracts; Overview of Indian Derivatives market.

Reading: Hull & Basu: Chapter 1

2 2 Mechanics of Futures Market:

Specifications of Futures Contracts; Operation of Margins; Newspaper Quotes; Convergence of Futures price to Spot Price; Safeguards in Futures Market; Closing of a Futures position; Open Interest.


3-4 Determination of Futures prices:

Investment vs. Consumption assets; Short selling; Cost-of- Carry Model; Valuing Futures Contracts; Futures Price & the Expected future Spot Price.


5-6 Hedging Strategies Using Futures:

Basic Principles; Basis Risk; Cross hedging; Minimum Variance Hedge Ratio; Stock Index Futures; Hedging with Stock Index Futures; Rolling the hedge forward.


3 7 Mechanics of Options Market:

Types; Option Positions; Underlying assets; Specifications of a Stock

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Option; Commission & Margins; Trading & Clearing Corporation.


8-9 Properties of Stock Options:

Factors affecting Option prices; Upper & Lower Bounds of Option prices; Put-Call parity; Early exercise of options; Relationship between American Put - Call prices; Effect of Dividends.


10-12 Valuing Options:

Binomial Model, one-step, two step binomial trees; Risk-neutral valuation; Black-Scholes Options Pricing Model (BSOPM); Assumptions; Log-normal property of stock prices; Interpretation of the formula; Volatility; Implied Volatility; Volatility smiles, Effect of Dividends.

Reading: Hull & Basu: Chapter 11, 13

13-14 Trading Strategies Using Options:

Strategies involving a single option & a stock; Spreads; Combinations; Synthetic Stock.


15-16 The Greeks:

Delta, Theta, Gamma, Vega, and Rho - Meaning, Uses and relationship.


4 17-18 Swaps:

Concepts; Different types of Interest rate swaps-Structure, Pricing and Valuation of Interest rate swaps; Currency swaps- Structure, Pricing and Valuation of Currency swaps.


5 19 Commodity Derivatives:

Products, participants, Differences between Commodity and Financial Derivatives; Commodity Derivative Exchanges in India; Present Scenario in India.

6 20 Lessons from Derivative Disasters:

Main learnings from incidents of losses sustain while using

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derivative contracts such as Barings Bank, Orange County, Kidder Peabody etc.


Suggested Readings:

John C. Hull & Sankarshan Basu, Options, Futures, and Other Derivatives, 7th Edition, Pearson Education, 2010.

Robert W. Kolb and James A. Overdahl, Futures, Options & Swaps, 5th Edition, Wiley India, 2009.

Don M. Chance and Robert Brooks, Derivatives and Risk Management Basics, Cengage Learning, 2008.

David A. Dubofsky, and Thomas W. Miller, Derivatives – Valuation & Risk Management, Oxford University Press, 2003.

Course: Management of Financial Services

OBJECTIVE

The changes taking place in the financial services industry have far reaching effects on our local and global economies. In view of these changes, the course aims at providing an in-depth understanding of the financial services industry as it exists and the forces governing its future. The emphasis is laid on integrating the theoretical and practical framework to analyze the forces that shape current and future developments in the financial services industry. Financial services are discussed in detail with special reference to India.

COURSE CONTENTS

Module No Session No(s)

Topic & Readings

1 1-2 - Financial Services - Developments, Growth and Future prospects Financial Services Industry in transition, Financial services and Value Production, Asset Management, Information and Advisory Services, Financial Services and the Economy. Individual Assignments : Article Review Readings:Ch. 1,1.1 to 1.6, Financial Services, Thummuluri Siddaiah, Pearson Ch.1, 1.1to 1.4.2 Financial Services, by N.P.Tripathy,(IIMS) PHI

Announcement of Real Life Projects2 3-4-5 Depositories,

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Commercial Banks, Financial Sector Reforms, Role of RBI as Banking Regulator Universal Banking Debit and Credit Cards. FAQ s on Depository Services

CASE STUDY ON BANK’S BALANCE SHEET. Readings: Ch. 10, 10.1 to 10.11, Financial Services, Thummuluri Siddaiah, Pearson. Ch.14, 14.1 to 14.7, Financial Services, N.P. Tripathy(IIMS), PHI, Ch.13, 13.1 to13.10, Financial Services, N.P. Tripathy,(IIMS) www.rbi.org.in, www.nsdl.co.in, www.sebi.gov.in

3 6-7-8 Merchant Banking

New Issue Management, Pricing of Securities, Merchant Banking, Bought out Deals, private Placement and Book Building, Loan Syndication. Practical Exercise on Pricing of Equity Shares and Allotment Of shares in IPO/FPO.

CASE STUDY ON SYNDICATION OF LOANS Readings: Ch.3, 3.1 to 3.7, Ch4, 4.1 to 4.19, ch.5, 5.1 to 5.7-Financial Services By Thummuluri Siddaiah,, 2011, Pearson Publishers. Ch.7, 7.1 to 7.8, Financial Services, N.P. Tripathy,(IIMS), PHI

4 9-10 Venture Capital-Concept, Regulatory guidelines of SEBI

Stages of Venture financing, Criteria for appraisal and methods of evaluation. Exit Strategy.

Case Study on Venture Capital Readings: Ch.5 P.81-104, Financial Services and Markets, Dr. Punithavathy Pandian, Vikas Publishing. Ch.8, P.117-135, Financial Services, N.P. Tripathy,(IIMS) PHI Ch 15, 15.1 to 15.6, Financial Services, Thummuluri Siddaiah, Pearson India.

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http://www.sebi.gov.in/

http://www.nsdl.co.in/

http://www.rbi.org.in/

5 11-12 Factoring and Forfaiting Concept and scope; need for factoring and forfaiting; Bills discounting and factoring; Practical Problems and Exercises.

GROUP PRESENTATIONS AND EVALUATION Readings: Ch. 23, 23.1 to 23.5, Financial Services, Thummuluri Siddaiah, Pearson. Ch 10, 10.1 to 10.10 and Ch 11, 11.1 to 11.6, Financial Services by N.P. Tripathy,(IIMS), PHI

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Credit Rating

Need for credit rating; Scope and Methodologies of credit rating for financial companies, banks and financial instruments; limitations.Case Study on Credit RatingReadings: Ch. 12, 12.1 to 12.9, Financial Services, Thummuluri Siddaiah, Pearson. Ch.9, 9.1 to 9.9, Financial Services, N.P Tripathy, PHI.

7 15-16 Mutual Funds

Structure and functions of Mutual funds; types of mutual funds. Performance evaluation of Mutual Funds

Practical Problems and Exercises. Readings: Ch 13, 13.1 to 13.15, Financial Services, Thummuluri Siddaiah,Pearson Ch.8, P.144-164, Financial Services, Dr. Punithavathy Panidian,Vikas. Ch.6, 6.1 to 6.14, Financial Services, N. P. Tripathy(IIMS) , PHI

8 17-18 Leasing and Hire Purchase. Case Study on Leasing Practical Problems and Exercises Readings: Ch 12, 12.1 to 12.18, Financial Services, N.P. Tripathy(IIMS), PHI Ch.2, P.16 to 39, Financial Services, by Dr. Punithavathy Pandian,Vikas. Ch. 18, 18.1 to 18.9,Financial Services, Thummuluri Siddaiah, Pearson.

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Insurance Services-

Types of Insurance Role of Insurance Regulator Development Authority Readings:Ch 14, 14.1 to 14.6, Financial Services,Thummuluri Siddaiah, Pearson.

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10 20 Contemporary Issues :

Internet Banking, Internet Trading in Securities Market Role of SEBI as regulator of Capital Markets. Readings: Ch. 13, 13.1to 13.10, Financial Services, N.P. Tripathy(IIMS),PHI

SUGGESTED READINGS : Tripathy, N.P., Financial Services,,Prentice Hall of India Limited Paul Justin, Padmalatha Suresh, Management of Banking and Financial Services, 2007,

Pearson Education Financial Services –Thummuluri Siddaiah - Pearson,2011. Financial Services and System, K. Sasidharan and Alex K. Mathews,2008,

Tata Mcgraw Hill Publishing Ltd.,

Financial Services and Markets – Dr. Punithavathy Pandian- Vikas Publishing House (P) Ltd. Perspectives on Financial Services –Subhomoy Das- Allied Publishers(P) ltd Financial Services –Khan and Jain.-Tata Mcgraw Hill.. Merchant Banking and Financial Services- Dr S. Gurusamy Mcgraw Hill Education-Vijay Nicole

Imprints(P) Ltd Khan, M.Y., Financial Services, Tata McGraw Hill. Pandey, I.M.,, Venture Capital – The Indian Experience, Prentice Hall of India Saunders, Anthony, Financial Institution Management, Irwin McGraw-Hill, 3rd Edition Verma, J.C., Merchant Banking, Bharat Law House Pvt. Ltd. SEBI / RCI guidelines RBI Reports Indian Economic Survey CMIE Reports

Course Title: Commercial Banking

COURSE OBJECTIVE:

The purpose of the course is to provide a thorough understanding of the Key aspects of Management of Commercial Banks and to give exposure to the students in issues andChallenges being faced by the Commercial Banks consequent to Banking Sector Reforms, Risks faced by banks in the dynamic economic environment, Liability Management,

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Management of Capital, Loan Policy, Exposure Norms, Investment Policy , Management of Assets Quality, Recovery Management etc. The course will also cover the key aspects of financing to SME sector and Retail banking and the emerging opportunity to banks in wealth management .

COURSE CONTENTS:

Module No.

Session No./s

Topic & Reading/s

I 1-2 *An Overview of Banks and the Financial Services Sector.*Organization and Structure of Banking and the Financial Services Industry*Banking Sector Reforms* Impact of Govt. Policy and Regulation on the Banking Sector.* Functions of Banks.* Financial System structure*Types of Banks* Organizational set up in a Bank.* Opening of New Branches/ATMs

II 3-4 *Bank’s Balance Sheet* Analysis and Evaluation of Financial Performance of Banks*Measuring and Evaluating the Bank’s performance and their principal competitors* Analyzing Bank’s profitability*Supervisory Mechanism of RBI for the Banks-CAMELS approach CASE STUDY and Exercises on calculating Financial Ratios.

III 5-6 * Management of Capital* Capital Planning and Capital Adequacy of Banks* Basel Norms Exercises for computing Capital Adequacy

IV 7-8 * Managing Sources of Funds for Banks and their principal competitors.* Liabilities Management(incl. NRI Deposits)* Asset Liabilities Management(ALM)* Managing and pricing deposits services* Cost of Funds and Transfer Pricing Mechanism

CASE STUDY on ALM

V 9-10 * Managing Investment Portfolio* Investment Banking-Investment Policy.* Liquidity and Reserve Management . * Non-Fund Based services Exercises in Investment Management

VI 11-12 *Credit Management-

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* Loan Policy of Banks , Exposure norms.* Corporate Banking, Rural Financing ,Financial Inclusion, SME, Retail Banking, Personal Banking, Wealth Management.* Credit Appraisal- Assessment of Term Loan, Working Capital and Non-Fund Limits., including Export Finance.* Loan Delivery* Credit Rating and pricing of loans CASE STUDY on Credit Appraisal and Assessment of Credit Limits

VII 13-14 * Credit Monitoring and Risk Based Supervision in Banks* Restructuring of Advances-CDR Mechanism.* RBI’s prudential norms on Income Recognition and Asset Classification.* Management of NPAs* Recovery of loans and advances-Legal and Non-Legal Measures CASE STUDY on Credit Monitoring and Corporate Debt Restructuring

VIII 15-16 * Technology in Banks* Payment Service Mechanism.* Contemporary issues in banking

IX 17-18 *Financing Imports and Exports. *Letter of Credit, Packing Credit and Export Facilities,*Role of ECGC in promoting International Trade.Case Study in financing imports and exports

X 19-20 Financing to SME sector. Retail Banking Marketing of Bank’s Products and Services. Wealth Management. Case study in SME banking and Retail Banking PROJECT WORK

TEXT & READINGS :

1. Management of Banking, S. Scott MacDonald and Timothy W. Koch, Publishers : CENGAGE Learning.2. Bank Management and Financial Services, Peter S. Rose, Sylvia C. Hudgins, Publishers : Tata Mcgraw Hill.3. Management of Banking and Financial Services, Padamlatha Suresh and Justin Paul, Publishers : PEARSON.4. BANKING : Theory and Practice, K. C. Shekhar and Lekshmy Shekhar, Publisher : Vikas Publishing House (P) Ltd.5. Commercial Bank Management, Singh and Dutta, Mcgraw Hill Education(India) (P) Ltd.6. Financial Services and Systems(Chapter 10, 13, 14 and 16),K. Sasidharan and Alex K. Mathews, Publishers : Tata Mcgraw Hill Publishing company.7.Modern Commercial Banking, H. R. Machiraju, Publishers : New Age International Publishers.

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Course Title: International Financial Management

Course Objectives:

This course aims at providing a conceptual framework within which key financial decisions of the multinational firm can be analysed. It aims at providing an insight into operations and functioning of foreign exchange markets, hedging foreign exchange exposure, besides the tools for taking investment and financing decisions in a multinational setting.

Course Outline:

Module

Session Nos.

Topics & Readings

1 1 Globalization and the Multinational Firm Rise of Multinational Corporations, Process of Overseas

expansion, Internationalisation of Business & Finance, Dimensions of International Finance

Readings: Shapiro: 1 ; Levi: 1; Sharan: 1; Eiteman: 1; Vij: 12-3 Market for Foreign Exchange

Structure of Foreign Exchange Market, Major Participants, Direct & Indirect quotes, Cross exchange rates, Spot & Forward Market, FEDAI rules, Determination of Exchange rates in Spot market. Factors influencing determination of exchange rates.

Readings: Shapiro: 2 ; Levi: 2&3 ; Sharan: 4 & 5; Madura: 6;Eiteman: 4; Vij: 7

4-5 International Monetary System Exchange Rate systems - Fixed-rate system, Free float,

Managed float, Current system of Exchange rate determination.

Brief history of the International Monetary System – Classical Gold Standard, Bretton Woods System, Post-Bretton Woods system, European Monetary System & Monetary Union, Emerging Market Currency Crisis.

Readings: Shapiro: 3 ; Levi: 10 & 11; Sharan: 3; Eiteman: 2; Vij: 22 6-7 International Parity Relationships

Arbitrage and Law of one price Purchasing Power Parity- Absolute & Relative form, empirical

evidence on PPP Interest Rate Parity – uncovered and covered, empirical

evidence International Fisher Effect, empirical evidence, Relationship between Forward rate and future Spot rate.

Readings: Shapiro: 4 ; Levi: 5 & 6; Madura: 7 & 8; Eiteman: 6.

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Module

Session Nos.

Topics & Readings

8 Balance of Payments Structure of Balance of Payments categories, Equilibrium &

Disequilibrium, Approaches to Adjustment, Coping with Current Account Deficit, Capital Account Convertibility.

Readings: Shapiro: 5 ; Levi: 7 ; Sharan:2; Madura: 2; Eiteman: 3; Vij: 4.

3 9-10 Managing Foreign Exchange Exposure Concept of Foreign Exchange Exposure, Types of Foreign

Exposure – Transaction, Operating & Translation Managing Foreign Exchange Exposure, Need for Hedging,

Hedging of Transaction & Real Operating Exposure, Managing Translation Exposure

Readings: Shapiro: 10& 11; Levi: 13 & 14; Sharan: 9 & 10; Madura 10 & 11; Eiteman: 8-10; Vij: 9-11.

11-12 Derivatives on Currencies Currency Futures & Options - Product details Structure and pricing of Interest rate & Currency Swaps, Swap

Market Quotations, Currency derivatives in IndiaReadings: Shapiro: 7,8,9; Sharan: 6,7,19; Madura: 5; Eiteman: 5.

4 13-14 International Financial Markets International Debt Market, Types of Instruments, Foreign

Bonds and Eurobonds, Credit Ratings International Equity Markets, Market Structure, Trading

Practices and Costs. Global Development Banks - IBRD, IFC, IDA & Regional

Development Banks - ABDReadings: Shapiro: 12 & 13; Levi: 21; Sharan: 15 & 16;Eiteman: 12, 13; Vij: 18.

5 15-16 Capital Structure and Cost of Capital for MNCs Domestic vs. MNC cost of capital, Cost of Capital across

countries, International CAPM, Cost of Capital for Foreign Projects.

MNC’s Capital Structure decision, Subsidiary vs. Parent Financing, Cross-Border Listings of Stocks, Effect of Foreign Ownership Restrictions, Financial Structure of Subsidiaries & MNC.

Readings: Shapiro: 14; Madura: 17 & 18; Vij: 12.6 17-18 International Capital Budgeting

Evaluation criteria, Subsidiary vs. Parent’s Perspective, Additional factors to be considered – Exchange rate fluctuations, Inflation, Impact of Project on existing cash flows, Host country’s incentives, Risk Adjustment in Capital Budgeting Analysis, Real Options & Adjusted Present Value Model.

Readings: Shapiro: 17; Levi: 19; Sharan: 12; Madura: 14; Eiteman:

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Module

Session Nos.

Topics & Readings

18.7 19 Financing International Trade

Payment terms in International Trade – Cash in Advance, Letter of Credit, Draft, Consignment, Open Account.

Documents in International Trade – Bill of Lading, Invoices, Insurance certificate.

Financing techniques – Bankers’ Acceptance, Discounting, Factoring & Forfaiting.

Agencies of International Trade & Credit Insurance – EXIM Bank of India, ECGC.

Readings: Shapiro: 18; Levi: 23; Sharan: 22; Madura: 19; Eiteman: 23.

20 International Cash Management Objectives, Centralised Cash Management, Accelerating Cash

Inflows, Bilateral & Multilateral Netting, Blocked funds, Transfer Pricing, Investing excess cash.

Readings: Shapiro: 19; Levi: 17; Sharan: 21; Madura: 21; Vij: 15.Suggested Readings:

Eiteman, David K., Stonehill, Arthur I., & Moffett, Michael H., Multinational Business Finance, 12th Edition, Pearson Education, 2011

Madura, Jeff, International Corporate Finance, 10th Edition, Cengage Learning, 2010

Shapiro, Alan C., Multinational Financial Management, 9th Edition, Wiley India, 2010

Levi, Maurice D., International Finance, 5th Edition, Roultedge, 2009

Eun, Choel, & Resnick, Bruce G., International Financial Management, 4th Edition, Tata McGraw-Hill, 2003

Sharan, V., International Financial Management, 6th Edition, PHI Learning, 2012

Vij, Madhu, International Financial Management, 3rd Edition, Excel Publishers, 2011

Apte, P.G., International Financial Management, 6th Edition, Tata McGraw-Hill, 2011

Course Title: Insurance and Risk Management

COURSE OBJECTIVEThe objective of this course is to introduce the student to both the theory and applications of Insurance and Risk Management. The subject will give an in-depth insight into the

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insurance areas like Life, Health, Auto, Accident, Reinsurance and managerial control of insurable assets. Emphasis will be put on development of techniques that are part of the tool kit of those interested in becoming insurance professionals and/or researchers in insurance. The emphasis is laid on insurance as a means of dissipating and disseminating risk in insurance management.

COURSE CONTENTS


1. Introduction To Insurance

1 Importance of Insurance, Nature of Insurable Risks, Insurance Needs Analysis, Methods of Need Analysis, Classification of Insurance, Risks in Insurance

2. Principles of an Insurance Contract

2-3 Essentials of an Insurance Contract, Difference between an Insurance Contract and a Wager Contract, History of Insurance contracts, Development of Insurance in India. PSU and Private Sector Insurance Companies in India

3. Life Insurance 4-7 Principles of Life Insurance, Mortality Tables, Construction of Mortality Tables, Premium and Bonus, Life Insurance Products, Policy conditions, Portability, Pricing of Life Insurance Plans, Underwriting, Medical Records and Risks in Life Insurance.

ULIP and Whole Life Plans, Annuity and Pension Plans, Settlement of Claims, LIC of India and Private Sector Life Insurance Companies in India. Pension Plans in India. Life Insurance Sales and Rebating.

4. General Insurance-Health Insurance

8-10Health Insurance Plans in India, different Health Insurance Schemes for Elder Citizens, Group Health Insurance, Third Party Administrator TPA and HMO, Portability, Policy Conditions, Pricing of Health Insurance Plans, Deductibles, Underwriting, Medical Claims Administration, Medical Records and Risks in Health Insurance, Critical Illness Insurance, PSU and Private Sector General Insurance Companies in India. Health Insurance Sales and Rebating.

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5. General Insurance-Accident and Auto Insurance

11-12 Accident Policy and Accident Insurance. Auto Insurance in India, Third Party Auto Insurance, Comprehensive Auto Insurance, Portability, Policy Conditions, Pricing of Auto Insurance Plans, Deductibles, Underwriting, Auto Claims Administration Risks in Auto Insurance, PSU and Private Sector General Insurance Companies in India. Auto Insurance Sales and Rebating.

6. Insurance Regulation inIndia : IRDA.Also PFRDA

13-14 Insurance Regulatory and Development Authority (IRDA) Rules and Regulations, Registration of Insurance Company, Loss Prevention and Control, Tariff Advisory Committee, Protection of Policyholders Interest. Pension Regulator PFRDA, Pension Regulation, NPS, EPFO.

7.Bankassurance and Marketing of Insurance Products

15 Trends in Insurance Marketing, Marketing Strategies by Different Companies , Rebating, Bankassurance in India, Bankassurance Models, Future of Bankassurance

8. Reinsurance 16 The Reinsurance Contract, Functions of Reinsurance, Methods of Reinsurance, Reinsurance vs Double Insurance, Future of Reinsurance, Reinsurance Regulation in India, Reinsurance Risk, Global Reinsurance

9. Risk in Insurance

17-18 Understanding risk in Insurance, Risk and Hazards, Theories of Insurance Risk Management, Probability in Insurance Risk Management, Analysis of Financial Statements of an Insurance Company, Accounting Functions.

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10. Risk Management in Insurance

19-20 The Identification, Assessment, Treatment, Management and Implementation of Risk Management Plan.

Risk Mitigation through Fire InsuranceRisk Mitigation through Liability InsuranceRisk Mitigation through Agriculture InsuranceRisk Mitigation through Marine Insurance

TEXT BOOKSwarup C. Sahu and Suresh C. Das, (2013) Insurance Management, Himalaya, 2nd Ed, 2013.

OTHER READINGS

G E Rejda, Principles of Risk Management and Insurance, Pearson, 2002P K Gupta, Insurance and Risk Management, Himalaya, 2005Harrington And Niehaus, Insurance and Risk Management, McGraw Hill, 1999Taxmann, Insurance Law Manual, 2001Insurance Institute of India, Practice of General Insurance, Mumbai 1999Robert I. Mehr, Life Insurance Theory and Practice, Business Publications Inc, 1997Mark S. Dorfman, Fundamentals of Insurance, Prentice-Hall, 2002

Course: Financial Engineering

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This course is a sequel to Financial Derivative. It will develop the advanced tools needed to understand and value the increasingly complex financial instruments and contracts which are being used by corporations and other organizations. It aims at reviewing the main models and modeling techniques used in practical applications, understanding their applicability and limitations, and at building an integrated framework enabling students to: 1) decide what stochastic factors (e.g., volatility, jumps, one or more interest rate factors, default intensities) should be incorporated in a reasonable pricing model for a given derivative; 2) formulate a consistent model incorporating the chosen factors; 3) calibrate the model using market data; 4) price the derivative and identify a hedging strategy.

Course Outline –

Module Session No.

Topic

1 Financial Engineering 1

3-6

7-9

Scope and tools of financial engineering; factors contributing

to the growth of financial engineering; salient aspects in designing innovative products, processes, and strategies

Readings: –

Marshall and Bansal (1992), Financial Engineering, a complete guide to Financial Innovations, Prentice Hall of India, Chapters –1 and 2

Martingale Pricing & Monte Carlo simulation:

Martingales, Brownian motions, Ito processes, Diffusion & Stochastic differential equations, Ito’s lemma, Girsanov theorem

The martingale approach to derivative pricing. Examples: Black-Scholes & Black formula

Monte Carlo Simulation: Euler Discretization, Choleski decomposition, Estimating the greeks through Monte Carlo simulation

Readings: –

Hull, John C and Basu (2011). Options, Futures and Other Derivatives, Prentice Hall of India, 7e, Chapter 19

Modelling Volatility

The Constant elasticity of variance (CEV) model and the implied volatility function (IVF) model, The Merton-Jump diffusion model. Stochastic Volatility Models

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Readings: –


2.Exotics Options

10-12 1. Exotic Options - Non-standard Options, Forward start options, Chooser options, Barrier options, Binary Options, Look back options, Compound options, Shout Options, Asian Options, other complex options and their valuation.

2. Variance and volatility Swaps, VIX calculation, Correlation swaps, Volatility Trading

Readings: –


3.Introduction to Fixed Income Securities

13-14 Basic instruments (Swaps, Caps & Floors, Swaptions), The market pricing formulas & quoting conventions, Pricing caps, floors and swapations as bond options

Valuations of Convertible bond, Callable and putable Convertible bond using Black Scholes and Binomial tree methods.

Readings:

Marshall and Bansal (1992), Financial Engineering, a complete guide to Financial Innovations, Prentice Hall of India, Chapter –15.


4. Interest rate models

15-17 Hull & White, Heath-Jarrow-Morton, Cox-Ingersoll-Ross, Jamshidian, Vasicek, Merton Black, Derman & Toy

Binomial and trinomial trees

Readings:

Hull, John C and Basu (2011). Options, Futures and Other Derivatives, Prentice Hall of India, 7e, Chapters 30 & 31

5. Real 18-20 Real Options - Real Option Examples, Review of NPV, WACC, and

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Options Options, Comparison of Real Option and NPV, approaches to investment decisions, project mapping. Deferral options, Abandonment options, Contraction options, Expansion options, Compound options, Switching options.

Readings:–


The Options Approach to Capital Investment Dixit & Pindyck, HBR, May-June 1995

Investment Opportunity as Real Option: Getting Started on the Number Luehrman, HBR, July-Aug, 1998

Real Option Primer: A Practical Synthesis of Concepts and Valuation Approaches Hevert, Journal of Applied Corporate Finance, Vol 14, No 2, Summer 2001

Option Pricing Theory and its Applications Damodaran Do Forgone Earnings Matter when Modeling and Valuing

Real Options? A Black Scholes Teaching Exercise D Lander, Financial Practice and Education, Fall/Winter 2000

Estimating a Firms Cost of Capital: An Option Pricing Approach Hsia, Journal of Business Finance and Accounting, 18(2), January 1991

Uncertainty: The new rules of Strategy Amran and Kalutilaka, Journal of Business Studies, May-June 1999

Capturing the value of flexibility Amran and Howe, Strategic Finance, December 2002

Real Options and Strategic Decisions Copeland and Howe, Strategic Finance 2002

Real Options: Facts and Fantasy Damodaran The Promise and Perils of Real Options Damodaran What is not a Real Option: Considering Boundaries For

the Application of Real Options to Business Strategy Adner and Levinthal, Academy of Management Review, 2004, Vol 29, No 1, 74-85

Text

Hull and Basu (2011). Options, Futures and Other Derivatives, Prentice Hall of India, Seventh Edition

Marshall and Bansal (1992), Financial Engineering, a complete guide to Financial Innovations, Prentice Hall of India

References

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Schwartz E S and Trigeorgis L (2001), edited Real Options and Investment under Uncertainty, Classical Readings and Recent Contribution, MIT Press

Copeland T and Antikarov V (2001), Real Options – A practitioner’s Guide, Texere Eales, B (2000), Financial Engineering, Macmillan Neftci S N (2005), Principles of Financial Engineering, Academic Press Mason et al (1995), Cases in Financial Engineering, Applied Studies in Financial

Innovation, Prentice Hall, New Jersey Paul Glasserman (2004), Monte Carlo Methods in Financial Engineering, 1st edition,

Springer Damiano Brigo and Fabio Mercurio (2006), Interest Rate Models - Theory and

Practice, 2nd edition, Springer Riccardo Rebonato (2002, Modern Pricing of Interest-Rate Derivatives: The LIBOR

Market Model and Beyond, 1st edition, Princeton University Press.

Course: Mergers , Acquisitions and Corporate Restructuring

Learning Objectives:

a) Equipping the students to understand the rationale for the process of

Corporate restructuring through mergers & acquisitions and other techniques in M & A.

b) Due Diligence and evaluation of target firms,

c) Cross Border acquisitions

d) Valuation of companies, methods of payments and financing in M & A.

e) Post-merger integration including HR issues in cultural integration.

f) Legal processes in M & A , SEBI regulatory requirements, Tax and accounting aspects.

Session Plan

Module Session Topic

1. Introduction to Mergers and Acquisitions

1-3 - Framework for Mergers & Acquisitions, Major types of Mergers and Acquisitions - Motives and justification for mergers & acquisitions, - Concept of Synergy, Approaches to formulating strategy. - M&A as a Growth strategy – - BCG Matrix, Ansoff Matrix, Porter Approach, - Due Diligence of Target firms, - Cost –Benefit analysis of M and A ( CASE STUDY : Merger of Reliance Petroleum With Reliance Industries Ltd.)

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Readings: Mergers, Restructuring and Corporate Control, PHI J.Fred Weston, Kwang S. Chung and Susan E Hoag( Part-II, P.56-82 and Mergers, Acquisitions and Corporate Restructuring,, Prasad G. Godbole (IIMA), Vikas Publishing House (P.3 to 8)

2. Value Creation by restructuring

4-6

- Diversification & Conglomerates, Restructuring Strategies. -Types of Restructuring, Strategic Alliance,

- Joint Ventures - Corporate divestments and disinvestments. Case Study : Demerger of Ultratech by L & T and its acquisition by GRASIM (A Case Study on Corporate Restructuring) Readings: Mergers, Acquisitions and Corporate Restructuring, Prasad G. Godbole,(IIMA), Vikas,Publishing, 2009 ( P.9 to 32) and Mergers, Restructuring and Corporate Control, by J.Fred Weston, P. 56-82, 190-to 223.

3. Executing restructuring

process

7-9

- Management Buyout (MBO), Leveraged Buyout (LBO), Cross- Border M & A. Reverse Merger, spin-offs, Takeovers-hostile and friendly Defenses against hostile take over. -Readings: Ch.5, 58-68, Mergers, Acquisitions and Restructuring, Prasad G.Godbole(IIMA) -Ch. 17,Mergers,Acquisitions and other restructuring Activities, Donald M DePamphilis ( 649-680) Case Study : Merger of ICICI with ICICI Bank (Reverse Merger)

4. Valuation of firms

10-13

- Corporate Valuation – Valuation Problems, - ESOPS and valuation problems - Various methods (FCF, DCF, Valuation of Intangibles). - Exchange Ratio, - Methods of Payment for M & A –Funding Options - Readings: Ch.14,15,16 P. 212 to 248. - Practical Exercises and Problems in Valuation. Case Study : Acquisition of Corus by Tata Steel ( A Case on Cross Border Acquisition and Funding Options for an acquisition)

5 Compliance With Legal

requirements14-15

-Legal Processes in M &A -SEBI Takeover code and regulatory guidelines -Competition Act -2002.

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-Ch 7 to 10 ,Mergers, Acquisitions and Corporate Restructuring, Prasad, G. Godbole ,IIMA, Vikas Publishing. CASE STUDY Merger of Ponds India Ltd with Hindustan Lever Ltd. ( A Case on Legal Processes in M &A )

6.Accounting and Tax Implications

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- Accounting aspects in Mergers & Acquisitions. - Tax implications in M & A - Readings, Ch. 12 and Ch 13, P. 175-204, Mergers, Acquisitions and Corporate Restructuring, by Prasad G. Godbole, (IIMA)

( Exercises in Tax and Accounting aspects)7. Post-merger and

change management 17-18 - Post-merger integration,. - Human aspects, implications of organizational and Cultural changes. - Case Study – Merger of Indian Airlines with Air India “ Key Issues in Due Diligence and Integration – Lessons Learnt.” - Readings: Part-II, Ch. 6 ( P. 205-231)

8. Group Presentation19-20 Group Presentation and Evaluation

Suggested Readings

Compulsory:

“Mergers, Restructuring & Corporate Control” by J. Fred Weston, Kwang S. Chung and Susan E. Hoag (Prentice Hall India)

“Takeovers, Restructuring and Corporate Governance” by J. Fred Weston, Kwang S. Chung and Juan A. Siu (Prentice Hall)

Valuation by Aswadh Damodaran (John Wiley) Financial Management- MY Khan and PK Jain Tata Mcgraw Hill.Mergers, Acquisitions

and Takeovers- H.R. Machiraju, New Age International (P) Ltd. Mergers, Acquisitions and Corporate Restructuring by Prasad g. Godbole-Vikas

Publishing House (P) Ltd. Corporate Restructuring-Enhancing Shareholder Value –Ranjan Das and Udyan

Kumar Bose- Tata Mcgraw Hill . Mergers ,Acquisitions and other Restructuring Activities- Donald M. DePamphilis-

2010By Elsevier Inc.

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References:

“Mergers et.al” Issues ,Implications and Case Laws by S.Ramanajum (Tata McGrow Hill)

“Mergers & Acquisitions of Companies” by P. Mohan Rao (Deep & Deep) “Readings in Mergers & Acquisitions” by Patrick Vaughan (Blackwell) “Corporate Finance: Theory & Practice” by Aswath Damodaran ( John Wiley) “Exploring Corporate Strategy” by Garry Johnson & Kevan Scholes (Prentice Hall

India) Cartwright, Sue and Cary L. Cooper (1996), Managing Mergers, Acquisitions and

Strategic Alliances: Integrating People and Cultures,Butterworth- Heinemann Ltd., Second edition.

Beckley, Peter J and Pervez N Ghauri (2002), International Mergers and Acquisitions- A Reader, Thomson.

Case Studies on Mergers and Acquisitions (2004), ICFAI Center for Management Research.

Advanced Corporate Finance –Chandrasekhar Krishnamurti and S. Vishwanathan PHI Learning(P) Ltd.

Mergers and Acquisitions from A to Z –Andrew J Sherman and Milledge A Hart. Valuation-Measuring and Managing the Value of Company Mckinsey and Co, Tom

Copeland ,Tim Koller. Law and Practice of Mergers and acquisitions Jayant M Thakur Snow white

Publishers Corporate Mergers, Amalgamations and Takeovers-J.C.Verma –Bharat Publishing

House

Course: Enterprise Risk Management

INTRODUCTION

Risk Management has emerged a specialized area of management contributing to the value

maximization process of organizations. Risk Compliance and reporting is an integral part of

the financial statements apart from the prime responsibility of boards towards stakeholders.

Global financial crises and turbulence has accentuated the need for a sophisticated risk

management system in all businesses including corporations. Future managers need to

understand how corporations make use of the insights and tools of risk management in

holistic manner.

OBJECTIVE

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The objective of this course is to develop an integrated approach to measuring and managing

all risks directed towards value maximization. The course lays emphasis on specific risks of

businesses and apprises with the emerging technologies in current business environment.

SESSION PLAN

Session No.Topic/Theme

Readings (as listed below)

Part IIntroduction to Risk

1-5 Risk-Defined, Risk vs. Uncertainty, Importance of

Risk, Types of Risk, Risk for Business and

Individuals, Risk Management by corporations,

Risk Perception, Risk Culture and RM Business

Models, Exceptions

Case Lets: Daimler and Chrysler, Weban and Philips,Nokia and Erickson, Global Portfolio

# Erick Banks- Ch. 2

# Hampton –Ch. 12-18

# Christopher Culp – Ch. 10

Part IIRisk Management Process & Strategies

6-9 RM process, Risk Matrix, Risk Mapping, Risk

Focus, Changing Face, Risk and Business Strategy,

Risk Assessment, COSO Framework

Case Study: Southern Airlines Case

# Shimpi – Ch. 4

# Shimell – Ch. 21

Part III Risk Management Tools & Techniques

10-15 Risk Assessment, Risk Quantification

Methodologies – Mathematical and Statistical

Measures, Comparative Analysis

Case Study: Sesa Goa Ltd.

# Merna and Thani – Ch. 4

Part IV Risk Management Systems - Implementation

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15-22 Implementing ERM – Strategic Issues, Defining

RM Policy, Roles and Responsibilities, RM

Documentation, Risk Architecture and Structure,

RM technologies - monitoring, evaluating, and

improving the effectiveness of risk management

systems and processes; Integrated Risk

Management - global outlook, prospects and

challenges.

Case Study: Chase Manhattan

# Hopkin – Ch. 7-10

Part V Levels of Risk Management in Corporations

23-31 Risk Management at Corporate, SBU and Project

Levels, Model Risk Organization {Case

Presentations}

Case Study: Idea Cellular, Airtel, NHPC

# Merna and Thani – Ch. 7-9

Part VI RM Applications & Perspectives

32-36Portfolio View of Risk, RM in Insurance Companies, Banks, Manufacturing Organizations, BCM, Run-offs and Contingent Capital, Corporate Governance, Stakeholders Management

# Shimpi – Ch. 8,9

# Hopkin – Ch. 18-20

READINGS

Books

Shimpi Prakash A. Shimpi, Integrated Corporate Risk Management (2001),Texere

LLC., NY.

Hampton

Culp

Shimell

Merna &

Thani

Hampton John J. (2009), Enterprise Risk Management, AMACOM.

Culp Christopher L. (2001), The Risk Management Process, John Wiley &

Sons.

Shimell Pamela (2002), The Universe of Risk, Pearson Education.

Merna Tony and Faisal F. Al-Thani (2008), Corporate Risk Management,

John Wiley and Sons.

Hopkin Paul (2010) , Fundamentals of Risk Management, Kogan Page.

James Lam (2003), Enterprise Risk Management: From Incentives to

29

Hopkin

Lam

Erick Banks

Controls, Wiley Finance Series.

Erick Banks and Richard Dunn (2003), Practical Risk Management, John

Wiley and Sons

Research Papers

# ERM-Theory and Practice

# Use Of Cash Flow at Risk Reports in Making Intelligent Hedging Decisions

# Risk Measurement: An introduction to Value at Risk

# Integrated Risk Management with Cash Flow at Risk/Earnings at Risk methods

LIST OF EXERCISES

1. Read the risk mapping cases and map the risk for Southern off Airlines Case

2. Analyze the financials of Sesa Goa Ltd. and compute profit at risk.

3. Read the applications of VaR.

TERM PAPER

Students in-group shall be undertaking the case of any company, analyze its financials,

business models, and other information. On that basis perform a risk analysis

comprising of risk maps, strategic risks, risk methods used and critical summarizations.

PEDAGOGY

The teaching methodology will be a blend of lectures, real live cases and discussions and

presentation by students. Every student has to carry out exercises listed above. The case

presentations would help the students to learn experiences of the past and help them to build

portfolio strategies in real life. A group of 5-6 students would write a term paper and present

in the class. The purpose of the group term paper is to provide students with a vehicle for

creative thinking and study in the field of corporate risk management. The term paper will

30

provide an opportunity to critically analyze the issue in the listed topics, which would build

strong conceptual base for the course and would enable students to relate to the practice.

Carefully written term papers will synthesize, clarify and illuminate a large part of the course

curriculum.

GRADING POLICY

Assignment (Individual) 15%

Term Paper (Group) 15%

Case Presentation (Group) 20%

End Term Examination 50%

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