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Course: Security Analysis & Portfolio Management (Summer 2018)
Total classes: 40 (23 regular classes and 17 extra classes).
Class 1
Class 1
May 15, Room 601, Time 2:45 - 4:29
What is Finance? Accounting vs. Finance. STEM vs. Business studies: advantages and disadvantages. Career opportunities in Finance. Freedom vs. skills. Value -- economic, market, book, intrinsic.
Class 2
Class 2
May 17, Room 601, Time 2:30 - 4:00
Values and their types. Asset and its classifications. Investment.
Class 3
Class 3
May 22, Room 601, Time 2:00 - 3:35
Approaches of valuation: top down and bottom up. Valuation theory. RRR. Investment decision. Dhaka stock exchange.
Class 4
Class 4
May 24, Room 601, Time 2:00 - 3:30
Capital market: how does it work? Time value of money. Present value. Relationship between present value and intrinsic value. Various types of fixed income securities.
Class 5
Class 5
May 29, Room 601, Time 2:00 - 3:15
Preferred stock and its characteristic. Dividend equalization fund. Mode of payment (number of payments per year). Math: Finding the intrinsic value of preferred stocks and making a decision based on 15 percent rule.
Class 6
Class 6
May 31, Room 601, Time 1:45 - 3:15
Perpetuity and its characteristics. Intrinsic value of perpetuity. Growing perpetuity and its intrinsic value. PVIF and PVIFA. Bond and its classification. Intrinsic value of a simple annual bond and applying 15 percent rule.
Class 7 (Extra), Class 8 (Extra), Class 9 (Extra)
Class 7 (Extra), Class 8 (Extra), Class 9 (Extra)
June 3, Room B2-301,
Time slots:
12:00 - 1:00
1:00 - 2:00
2:00 - 2:50
Calculations of the intrinsic value of a monthly payment bond. Bond valuation using shortcut procedure. Zero coupon bond. Selling at discount, premium and at par. Valuation of a zero coupon bond. Current yield and YTM -- interpretation. Current yield, approximate YTM, after tax current yield, after tax YTM calculation. Treasury STRIPS. How do perpetuities work? Comparative risk premium of a bond, a debenture, and a common stock issued by the same company.
Class 10 , Class 11 (Extra)
Class 10 , Class 11 (Extra)
June 5, Room 601,
Time slots:
1:50 - 2:50
2:50 - 3:50
Protection mechanism for bond, debenture, perpetuity, preferred stock, and common stock: sink fund, collateral, dividend equalization fund. Common stock valuation approaches. Calculation of gH and gS (math). Calculation of intrinsic value of a common stock using Gordon growth model. Mathematical problems on Gordon growth model: (1) both gH and gS, (2) only gS.
Class 12 , Class 13 (Extra)
Class 12 , Class 13 (Extra)
June 7, Room 601,
Time slots:
2:00 - 3:00 (class 12)
3:00 - 4:20 (class 13)
Multi stage Gordon growth model and its applications. Valuation of common stock using historical average P/E approach. Share valuation using industry averages P/E approach (shortcut procedure).
(Last class before the Eid vacation)
Announcement: Model test on June 27. Syllabus: mathematical problems of chapter 2 and 3.
Class 14
Class 14
June 26, Room 601, Time: 2:40 - 4:10
Review of the mathematical problems from the midterm Syllabus.
Class 15 , Class 16 (Extra)
Class 15 , Class 16 (Extra)
June 27, Room 702,
Time slots:
3:30 - 4:30 (class 15)
4:30 - 5:35 (class 16)
1st model test.
Class 17 (Extra)
Class 17 (Extra)
June 27, Room 702, Time: 6:00 - 6:50
Solution to the 1st model test.
Midterm Exam
Midterm Exam
July 7, 2018. Time: 5:00 PM.
Syllabus: Chapter 1, 2, 3.
Class 18
Class 18
July 10, Room 601, Time: 2:35 - 3:35
Sources of risk: nine type of risks associated with securities. The concept of risk premium. Arbitrage-free approach of bond valuation.
Class 19
Class 19
July 12, Room 602, Time: 2:45 - 3:50
What is return? Various types of returns: holding period return, average return, TTM return.
Class 20
Class 20
July 17, Room 601, Time: 2:20 - 3:05
The meaning of risk in finance. Various proxies of measuring risk.
Class 21
Class 21
July 19, Room 601, Time: 2:35 - 4:05
Measuring risk of a stock using standard deviation from month-end closing price. Coefficient of variation.
Class 22
Class 22
July 24, Room 601, Time: 2:30 - 4:00
Security market indices. Usages of market indices. Factors to consider when constructing an index. Unweighted index (math).
Class 23
Class 23
July 26, Room 601, Time: 2:00 - 3:05
Expected return and risk calculation based on a probability distribution of the expected price.
Class 24 (Extra)
Class 24 (Extra)
July 26, Room 601, Time: 3:05 - 4:10
Stock split and reverse split. Market value of a stock. Price weighted index and adjustable divisor. Math: price weighted index.
Class 25, Class 26 (Extra)
Class 25, Class 26 (Extra)
July 31, Room 601
Time: 2:00 - 3:15, 3:15 - 4:05
Freely floating shares. Value weighted index. DJIA and its limitations. Indices of DSE. Differences between DSEX and DGEN. Beginning index value of DSEX and the reason behind this odd-looking value.
Class 27
Class 27
August 7, Room 601
Time: 2:00 - 3:25
Market return and market risk. Risk free rate of return. Market risk premium. Beta. An introduction to CAPM. Equilibrium rate of return.
Class 28
Class 28
August 9, Room 601
Time: 2:15 - 3:35
Historical alpha, expected alpha. Interpretation of alpha. Buy/sell decision based on alpha. Mathematical problems on alpha when market and stock related data are directly given.
Class 29 (Extra)
Class 29 (Extra)
August 9, Room 601
Time: 3:50 - 4:55
Calculate beta, historical alpha, expected alpha only from historical data of 6 months. Make buy/sell decision based on calculated expected alpha. Interpretation of the result.
Class 30, Class 31 (Extra)
Class 30, Class 31 (Extra)
August 14, Room 601
Time:
2:10 - 3:30
3:30 - 4:30
Return of portfolios. Correlation vs. covariance. Risk of a 2-asset portfolio.
Class 32, Class 33 (Extra)
Class 32, Class 33 (Extra)
August 16, Room 601
Time:
3:00 - 4:30
4:50 - 6:00
Constructing 2-asset portfolio from raw data. The matrix method of SD calculation of 3-assets and multi-asset portfolio. Determinator of risk in a portfolio.
Class 34, Class 35 (Extra), Class 36 (Extra)
Class 34, Class 35 (Extra), Class 36 (Extra)
August 27, Room 702
Time:
11:30 -12:30
12:30 -1:30
1:30 -2:30
The concept of correlation. Efficient portfolio of two assets. Efficient portfolio of many assets. Feasible set. Efficient frontier. Math: constructing minimum risk portfolio only from month end price data, and finding the improvement factors based on CV.
Class 37
Class 37
August 30, Room 701
Time: 2:00 -3:00
2nd Model Test.
Class 38 (Extra), Class 39 (Extra)
Class 38 (Extra), Class 39 (Extra)
August 30, Room 701
Time:
4:00 -5:15
5:15 -6:30
Solution to the 2nd model test.
Class 40 (Extra)
Class 40 (Extra)
August 30, Room 701
Time: 6:30 -7:45
Systematic and unsystematic risk. Diversifying the unsystematic risk. Feasibility of adding a new stock in an.existing portfolio (math). Various measures of portfolio performance.
Final Exam
Final Exam
September 8, 2018. Time: 4:30 PM.
Syllabus: Chapter 4, 5, 6, 7, 8.
Course Details
Course Details
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