Class History: Portfolio Management (Summer 2016)

[May 20] Class 1

• What is Finance

• What is return

• Different types of returns

  • Holding period return of an investor

  • Average holding period return of an investor

  • Average return of a stock

    • Without dividend 

    • With dividend 

[May 27] Class 2

• What is risk

• Various proxies of risks

• Standard deviation

  • Calculation of standard deviation

• Risk and return combined: Interpretation

• Comparison of two stocks

  • Same risk, different returns

  • Same return, different risks

  • Different returns, different risks

• Coefficient of variation 

[June 3] Class 3

• Relationship between two stocks

  • Examples

  • Graphical illustration

• Covariance

  • Problems of covariance 

[June 10] Class 4

• Correlation

  • Interpretation

  • Graphical illustration

  • Example

• THE END OF CHAPTER - 1 

[June 10] Class 5 (Extra), Class 6 (Extra)

Two classes back-to-back, started from 3:30 PM.

Chapter 2: Introduction to portfolio management

• What is portfolio

• What is portfolio management

• Assumptions of portfolio theories

• Benefits of constructing portfolio 

• Return of portfolio

• Risk of portfolio

  • Two-assets

  • Three-assets

  • The matrix method

• Determinants of risk in a portfolio

• The end of Chapter - 2.

[June 24] Mid-Term exam

• Time: 2:30 – 4:00 PM

• Room: B2-301 

  • Click here to view the result.

[July 15] Class 7

Chapter 3: Indexes

• What is security market index

• Usages of index

• Important factors in constructing index

• Unweighted index

[July 22] Class 8

Chapter 3: Index (continuing…)

• Price-weighted index (with detailed example and calculation procedure)

• Value-weighted index (with detailed example and calculation procedure)

[July 29] Class 9

• Chapter 3: Index (continuing…)

  • Indexes of Dhaka Stock Exchange

    • DSEX

    • DSE-30

  • Comparison of various indexes over time

• Chapter 4: The Market

  • What is securities market?

  • Market risk and return: How to calculate

[August 5] Class 10

• Chapter 4: The market (continuing…)

  • Calculation of market risk and return using index

  • The concept of beta

    • Beta of a portfolio

  • The market risk premium

  • The risk-free rate of return

    • Several proxies of risk-free rate of return

  • Capital asset pricing model (CAPM)

    • Required Rate of Return and Equilibrium rate of return

    • Security market line (SML)

    • How to determine whether a stock is undervalued or overvalued using the SML line?

[August 12] Class 11

• Chapter 4: The market (continuing…)

  • Mathematical example:

    • Calculation of Beta and Required Rate of Return of a stock using the CAPM principle

    • Calculation of Beta of a portfolio

• Chapter 5: Efficient portfolio and diversification

  • What is efficient portfolio

  • Efficient portfolio of two assets

  • Efficient portfolio of many assets

[August 19] Class 12

• Chapter 7: Behavioral Finance

  • What is behavioral finance

  • Why do people take irrational decisions while investing in the stock market

• Class test

  • Fullmark: 10.00

  • Time: 30 minutes

  • Syllabus: Chapter 4 (The market)

  • Click here to view the announcement

    • Click here to view the result.

[August 27] Class 13 (Extra)

Time: 6:00 - 8:15, Room - 1003

• Solution to the class test held on August 19th.

• Click here to view the announcement

[September 2] Final Exam

• • Time: 3:00 - 5:00

  • Room: 1003

  • Click here to view the result.

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