Portfolio Management and Securities Analysis Syllabus - MBA (PU)

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Course Description

Course Objective

This course aims to develop students’ abilities to analyze and value the securities in isolation and in the context of portfolio. It is designed to give students a solid foundation for developing and managing portfolio by applying the concepts, theories, and models of investments.

Course Description

The course deals with the tools, techniques, and the changing contexts of investments and their application in designing investment strategies. The topics covered are: The investment environment, Investment strategies, assets allocation, Securities market and indexes, Portfolio theories and practices, Efficient market hypothesis, Securities valuation, Professional money management and Portfolio performance evaluation.

Unit Contents

Course Outline and Session Plan

 

Session

Topics and Subtopics

Activity/Assignment

Basis of Evaluation

1-3

Overview of the Investments: Defining PMSA and investments, Portfolio management process, Investment instruments, Relationship between risk and return, Ethics in investment

Suggested Readings:

RB, Chapter 1

Individual Assignment and

Class Presentation:

Article: Ethics in Finance, by Rebert F. Bruner

ASN 1:

Reflection note

 

Class presentation

4-5

Investment strategies and assets allocation: Individual investor life cycle, Types of investor, Investment goal, Risk profile, Investment behavior and Investment strategies

Suggested Readings:

RB, Chapter 2

Book Review and Presentation: The Warren Buffet Stock Portfolio by Mary Buffet and David Clark

Review: Investment Risk and Financial Advise (Vanguard Risk Profiling)

Class Work:

What is your investment strategy?

 

Group Assignment

ASN 2: RB Ch. 2, Qn. 9

 

 

Class participation

 

Home Assignment

 

Presentation

Review Report

 

6-8

Securities Markets: Market organization, Trading mechanism and Margin trading

Suggested Readings:

RB, Chapter 4

www.nepalstock.com.np

Individual Assignment

Chapter end problems: P. 1 to 7

Semester Project

Home assignment

 

 

9-10

Security-Market Indexes: Index construction techniques

Suggested Readings:

RB, Chapter 5

Case Study 1: West Jet Airlines: Investment Strategy

Group Assignment

Chapter end problems: P. 1 to 6

Home assignment

 

Case Discussion

11-12

Efficient Capital Markets: Three levels of EMH and Anomalies

Suggested Readings:

RB, Chapter 6

Class Discussion (Group): Qn. 24

Article: Survival for the Richest

Class participation

13-16

An Introduction to Portfolio Management: Markowitz portfolio theory

Suggested Readings:

RB, Chapter 7

Mini Project (Group): Constructing Investment Portfolio Using Market Data from www.nepalstock.com.np

Chapter end problems:

P. 1 to 8

Article: An Introduction to Portfolio Theory by Andre F. Perond

Mini Project work

 

Article Summary

 

17-18

An Introduction to Asset Pricing Models: Capital market line (CML), security market line (SML) and Empirical tests of the CAPM; Arbitrage Pricing Theory (APT)

Suggested Readings:

RB, Chapter 8

Case Study 2: Alex Sharpe’s Portfolio

(Work on case data using excel)

Case Study 3: Lyxor CHINAH versus Lyxor MSINDIA: Portfolio Risk and Return

Class Work

Qn. 6 and 7

 

Individual Assignment

 

Chapter end problems:

P. 1 to 10

Class participation

Home assignment

Quiz 1

Case analysis and discussion (Case 2)

Case analysis report (Case 3)

19-20

Security Valuation Principles, Microanalysis and Micro valuation of the Stock Market, Industry Analysis, Company Analysis and Stock Valuation

Passive Vs. active management and Value Vs. growth investing

Suggested Readings:

RB, Chapter 11, 12, 13, 14 and 15

Class work

Chapter end problems

 

Class participation

 

Home Assignment

 

21-22

Technical Analysis: Tools and their application

Suggested Readings:

RB, Chapter 15

Class Work: Reading Different Charts

Class Participation

23

Analysis and valuation of Bonds

Suggested Readings:

RB, Chapter 18

Chapter end problems

Qn. 6 & 8

P. 1 to 1

Home assignment

Case Discussion

Quiz 2

24 a

An Introduction to Professional Money Management

Suggested Readings:

RB, Chapter 24

Class discussion

Class participation

24 b

Evaluation of Portfolio Performance

Suggested Readings:

RB, Chapter 25

Chapter end problems

P. 1 to 3

Class participation

Text and Reference Books

Text

RB  Rielly, F. K., and Brown, K. C. (2014). Analysis of Investments & Management of Portfolio.10th eds. Delhi: Cengage Learning India Pvt. Ltd.           

Suggested Additional Readings:

  • It is not mandatory but students can also read Navigate the Noise (Bernstein), Style Investing (Bernstein), The Battle for the Soul of Capitalism (Bogle), and Devil Take the Hind Most (Chancellor)
  • Students are also suggested to read regularly the daily publications like the Karobar, The Economic Times, Financial Times and the, and weekly publications like The Economist.
  • Critically watch/listen to CNBC, Bloomberg TV and any other TV showing business and finance news/discussion.

Pedagogy

The pedagogy will be a combination of lectures, case study and project works. Students are expected to attend classes only by going through the course materials prescribed in the session plan as well as additional reading materials provided. The students are also expected to have enough preparation for the discussion in the class during lecture and case study so that they can contribute ideas, thoughts, experiences, and arguments to the class discussion.

Download Syllabus
  • Short Name N/A
  • Course code FIN 633
  • Semester Fourth Trimester
  • Full Marks 100
  • Pass Marks 60
  • Credit 2 hrs
  • Elective/Compulsary Compulsary