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 |
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.
- Short Name N/A
- Course code FIN 633
- Semester Fourth Trimester
- Full Marks 100
- Pass Marks 60
- Credit 2 hrs
- Elective/Compulsary Compulsary