FINN 3063 Investments



Alexey Malakhov


WCOB 470

Class Time

M W 3:05 - 4:20 (section 1)
M W 4:35 - 5:50 (section 2)

Office Hours

after class


(479) 575-6118


amalakhov at

Course Website


Course Objective 

The primary objective is to provide an integrated framework for understanding the mechanism of financial investments. The basic theme is the Efficient Market Hypothesis and No Arbitrage Principle. The course emphasizes intuition and practical applications of investment theory as well as some analytical analysis. Topics to be covered include financial markets, portfolio theory and its applications, fixed-income securities. The course best suits the following students (but not limited to): 

  • Those who aspire to pursue a career in investment banking.
  • Those who would like to become a professional money manager.

Course Materials

There are assigned readings for each class. I expect that students come to class prepared for the materials that will be covered that day (the required readings are identified as Lecture# for lecture notes and BKM# for the chapter in the textbook). I may make cold calls on students to answer questions. I do not expect perfect answers from you, the thought process is way more important. I also strongly encourage students to ask questions - in many cases an insightful question is more valuable than a correct answer. You will also receive an extra point to your score on the Final Exam for catching each of my mistakes (believe me, you will have many chances). There is a limit of one point per person per lecture though.

Course Requirements

There will be four individual written assignments, one midterm, and a final exam. Assignments are to be completed on McGraw-Hill Connect. Late assignments will not be accepted. The lowest grade on your assignments will be dropped. The midterm and the final exam will be closed-book. You can bring one standard size (8.5 x 11) cheat-sheet (both sides) for the midterm and two standard size (8.5 x 11) cheat-sheets (both sides) for the final exam.

The course content builds on students' knowledge learned in the previous finance classes (prerequisites and corequisites - WCOB 2043 and FINN 3013). Proficiency in EXCEL is a must. There will be assignments involving extensive use of EXCEL. Good basic knowledge of statistics and some calculus is also required.


Your grade will be based on your class participation, assignments, the midterm and the final exam. The weights are given below:

                     Attendance and Participation                  bonus 1%
                     Assignments                                               30%
                     Midterm                                                     30%
                     Final Exam                                                 40%

Exam scores will be curved as a percentage of the highest score achieved among all students. If your Final Exam grade is better than the midterm, I will replace your Midterm grade with the Final Exam grade. Don't hesitate letting me know if you think that you were adversely affected by a grading error (you do not have to report any grading errors in your favor).


Attendance is expected (but not required) for every class. If you have to miss a class, you do not have to ask for my permission. Just remember that class attendance may add up to 1% bonus to your grades.

Academic Integrity

Students have the responsibility to know and strictly observe the University of Arkansas Academic Integrity regulations as described at Violators will be sanctioned according to the Academic Integrity Sanctions guidelines as described at