Security Analysis & Portfolio Management
This page summarizes the course "Security Analysis & Portfolio Management" for Summer 2018 semester only. This summary may not be compatible to the same course completed in a different semester.
Overview
This course introduces the Finance major students to the complex world of capital market, especially the stock market. The goal is to make the students smart and rational investors by providing necessary theoretical fundamentals and technical knowledge, with heavy emphasis on mathematical skills. It covers wide range of topics, all of which are practically essential for proper decision making in the stock market investment. At the end of this course, students will build several types of efficient portfolios using the real stocks traded on Dhaka Stock Exchange as a term paper.
The knowledge and techniques covered in this course are particularly useful in:
Personal investment,
Corporate environment, where a firm wants to invest its idle money in stock market.
Objectives
After successfully completing this course, the student should be able to:
Determine the intrinsic value of fixed income securities, including bonds, perpetuities, and preferred stocks
Determine the intrinsic value of common stock using multiple approaches
Find out the return, risk, and beta of securities
Compare two or more securities with different risk-return characteristics
Explain the underlying mechanisms of various types of security market indices, including the indices of DSE
Calculate the return, risk, and beta of a portfolio using the Markowitz model
Performance analysis of portfolios
Construct various types of efficient portfolios using real stocks of DSE
Course Materials and Calculator
Textbook: Kevin, S. "Security Analysis and Portfolio Management." Ed.2. Prentice-Hall of India Pvt.Ltd. ISBN: 9788120351301. [Recommended purchase]
Lecture notes: Other chapter-specific materials will be given to the CR (class representative) and will also be available online. It is the responsibility of the students to collect or download those materials. You may visit this page to learn how to download lecture notes.
Calculator: Do not enter the classroom without calculator. Scientific calculators will do, but financial calculator is recommended. Click here to learn more.
Reference books:
Reilly, F.K. and K.C. Brown. "Investment Analysis and Portfolio Management." Ed. 8. Thomson South-Western. ISBN: 0324407459.
Elton, E.J., M.J. Gruber, S.J. Brown, and W.N. Goetzmann. "Modern Portfolio Theory and Investment Analysis." Ed. 8. John Wiley & Sons, Inc. ISBN: 9788126528141.
Jones, Charles P. "Investments: Analysis and Management." Ed.9. John Wiley. ISBN: 9812531386.
CFA Institute. “Corporate Finance and Portfolio Management”. CFA Level 1, 2012 Edition. ISBN: 9780558925000.
CFA Institute. “Equity and Fixed Income”. CFA Level 1, 2012 Edition. ISBN: 9780558925017.
CFA Institute. “Ethical and Professional Standards and Quantitative Methods”. CFA Level 1, 2012 Edition. ISBN: 9780558924980.