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Course Name (English)
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INVESTMENT AND PORTFOLIO ANALYSIS
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| Course Code |
FIN552 |
| Course Description |
This course will introduce to the students the basic concept of investment, the various investment instruments and overview of the financial market. It emphasizes on various techniques and strategies used in investment and portfolio analysis employing both quantitative and qualitative approaches in analysing investment of a single asset as well as portfolio. Risk and return measurement and relationship of a single asset and a portfolio will be covered prior to economics, industry and company analysis (covers valuation on equities and bonds). This course covers also equity and bond portfolio management strategies. The coverage of this course proceeds to Capital Asset Pricing Model (CAPM) and technical analysis to understand the behaviour of stock prices and market. Next, this course covers on the construction of optimum portfolio and evaluation of portfolio performance. To enhance the students’ understanding, a dedicated financial trading simulation lab equipped with statistical trading software (BursaStation Professional) and Bloomberg database will be used. |
| Transferable Skills |
1. A reflective learner undertake independent and self directed study and learning.
2. Demonstrate ability to identify and articulate self skills, knowledge and understanding confidently and in a variety of contexts.
3. Communicate effectively with others.
4. Identify and present material and the evidence-base to support a reasonable argument.
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| Teaching Methodologies |
Lectures, Lab Work, Tutorial, Discussion, Presentation, Self-directed Learning |
| CLO |
| CLO1 |
Illustrate the various concepts of investment with the emphasis on techniques and startegies used in investment and portfolio analysis. (PLO1) |
| CLO2 |
Assist an investment strategy of a single asset and portfolio that maximizes return and minimizes risk to demonstrate students’ understanding on the knowledge. (PLO5) |
| CLO3 |
Build a hands-on skills and knowledge through trading software package(s) of Bursa Station and Bloomberg and to carry out trading simulated activities for a real time trading experience. (PLO2) |
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| Pre-Requisite Courses |
No course recommendations |
| Topics |
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1. Investment and Securities Market
1.1) 1.1 Overview of investment
1.2) 1.2 Primary and secondary Market
1.3) 1.3 IPO and market indices
1.4) 1.4 Bursa Malaysia and Securities Commission
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2. Risk and return of Single Security
2.1) 2.1 Types of risk
2.2) 2.2 Measurement of return
2.3) 2.3 Measurement of risk
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3. Portfolio Risk and Return
3.1) 3.1 Traditional portfolio analysis
3.2) 3.2 Sharpe Index model
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4. Economics and Industry Analysis
4.1) 4.1 Key characteristics of economic and industry analysis
4.2) 4.2 Industry life cycle
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5. Company Analysis and Valuation
5.1) 5.1 Measuring and forecasting earnings
5.2) 5.2 Projecting dividends
5.3) 5.3 Estimating intrinsic value
5.4) 5.4 Estimating earning multiplier
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6. Technical Analysis
6.1) 6.1 EMH, Dow Theory and Random Walk Theory
6.2) 6.2 Type of charts and patterns
6.3) 6.3 Technical indicators
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7. Bond Analysis and Valuation
7.1) 7.1 Type of bond
7.2) 7.2 Bond valuation
7.3) 7.3 Price volatility of bond
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8. Bond and Equity Portfolio Management Strategies
8.1) 8.1 Active versus passive strategies
8.2) 8.2 Asset allocation strategies
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9. Mutual Fund and Warrant
9.1) 9.1 Type of Mutual Funds
9.2) 9.2 Valuation of mutual funds
9.3) 9.3 Characteristic of warrant
9.4) 9.4 Valuation of warrant
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10. Capital Market Theory
10.1) 10.1 Capital Asset Pricing Model (CAPM)
10.2) 10.2 Arbitrage Pricing Theory
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11. Portfolio Selection
11.1) 11.1 Simple Markowitz Portfolio Optimization
11.2) 11.2 Simple Sharpe Portfolio Optimization
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12. Managed Portfolio Performance Measurement
12.1) 12.1 Sharpe Index
12.2) 12.2 Treynor Index
12.3) 12.3 Jenson Index
12.4) 12.4 Profitability Index
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| Assessment Breakdown | % |
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| Continuous Assessment | 100.00% |
| Details of Continuous Assessment |
| Assessment Type |
Assessment Description |
% of Total Mark |
CLO |
| Final Test |
Final assessment/exam |
30% |
CLO1
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| Group Project |
REPORT ON TRADING |
30% |
CLO2
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| Individual Project |
Individual Trading Game |
20% |
CLO3
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| Test |
Test 1 |
20% |
CLO1
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| Reading List | | Recommended Text | - Reilly & Brown 2012, Investment Analysis and Portfolio Management, 10th Edition Ed., Dryden Press
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| Reference Book Resources | - Fisher & Jordan 2003, Security Analysis & Portfolio Management, 6th Edition Ed., Prentice Hall
- Elton & Gruber 2007, Modern Portfolio Theory and Investment Analysis, 7th Edition Ed., Wiley and Sons
- Gittman & Joehnk 2007, Fundamentals of Investing, Pearson Education
- Sttrong, Robert A. 2009, Portfolio Construction, Management and Protection, South Western Carnege
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| Article/Paper List | This Course does not have any article/paper resources |
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| Other References | - Website BursaBursa Market place, Bursa Malaysia
- Database Bursa MalaysiaBursa Market Place
- Database BloombergBloomberg, Bloomberg
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