FINN 5333 Investment Theory and Management



Alexey Malakhov


WCOB 470

Class Time

Online and F2F

Office Hours



(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, and portfolio performance evaluation. 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 every week. I expect that students come to face-to-face 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, other reading materials will be posted either as files or web links). 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 two points per person per lecture though.

Course Requirements

There will weekly individual assignments, one midterm, and a final exam. Assignments are to be completed on McGraw-Hill Connect, and are due one hour before the class on the due date. 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. The final exam is cumulative, i.e. it covers the entire course. The final exam grade will replace your midterm grade if your final exam grade is higher than the midterm grade. You can use 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 introductory finance class. Proficiency in EXCEL is a must. There will be assignments involving EXCEL. Good basic knowledge of statistics is also required.


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

                     Class 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 grade, 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 for every class. However, if you have to miss a class, you do not have to ask for my permission (recorded lectures are available). Just remember that it would be increasingly difficult to pass the course without a 100% commitment. Also remember that you can get a bonus of 1% for active class participation.

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 guidlines as described at