Investment Analysis and Portfolio Management

Course Code:

AFN 314

Course Period:

Spring

Course Type:

Core

P:

3

Application:

0

Credits:

3

ECTS:

6

Prerequisite Courses:

Principles of Finance

Course Language:

İngilizce

Course Objectives:

To introduce the students in international finance to the theory as well as the application of investment management. Through classroom discussions, individual and group projects, and hands-on experience in “trading room” exercises, spreadsheet examples, and portfolio management simulations students will be exposed to the key concepts and technical tools necessary to understand, and to participate in the security analysis and investment decisions. Through careful analyses and hard work students will have a chance to integrate and synthesize the theoretical and empirical observations, the core investment and portfolio management concepts and methods with real life applications.

Course Content:

Topics discussed include, but are not limited to, models of return and risk, efficient portfolios, optimal portfolios, diversification, efficient markets, fundamental analysis, technical analysis, fixed income securities, bond portfolios, interest-rate risk management, different approaches to equity valuation, enterprise valuation, international diversification, mutual funds, hedge funds, portfolio management strategies, dynamic portfolios, asset allocation versus security selection, portfolio performance evaluation, and investment consulting process.

Course Methodology:

1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study

Course Evaluation Methods:

A: Testing, B: Presentation, C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Program Learning Outcomes	Teaching Methods	Assessment Methods
1. To be able to describe the fundamental concepts, underlying theories, practical methods and techniques used in investment analysis and portfolio management	1,2,3	1, 2, 3, 4	A, B, C, D
2. To be able to explain the investment tools, characteristics and investment environment	2,5,7,10	1, 2, 3, 4	A, B, C, E
3. To be able to value different assets	1,2,5,8	1, 2, 3, 5	A, B, C, D
4. To be able to describe the fundamental investment strategies and to execute them	1,2,8	1, 2, 3, 4	A, B, C, E
5. To be able to identify the impact of business events or macroeconomic factors on investment performance	3,4,5,7,8,10	1, 2, 3, 4	A, B, C, D
6. To be able to integrate theory and practice of construction and performance evaluation of investment portfolios	1,2,5,8,10	1, 2, 3, 5	A, B, C, D

Course Flow

Week	Topics	Study Materials
1	Overview, Class Procedures, Assignments and Distribution of Tasks
2	Elements of Investments, Background, Markets, Trading and Instruments	Textbook Chapters 1,2
3	Elements of Investments, Background, Markets, Trading and Instruments Trading Lab Workshops and Training on Assignments and Simulation	Textbook Chapter 3
4	Elements of Investments, Background, Markets, Trading and Instruments Trading Lab Workshops and Training on Assignments and Simulation	Textbook Chapter 3
5	Elements of Investments, Instruments	Textbook Chapter 4
6	Investment Risk and Return: Observations and Estimations	Textbook Chapter 5
7	Efficient and Optimal Portfolios	Textbook Chapters 6 - 7
8	Models of Risk and Return: Portfolio Applications	Textbook Chapters 6 - 7
9	Efficient Markets and Behavioral Finance: Technical vs. Fundamental Analysis	Textbook Chps. 8, 9, 12
10	Equity Valuation	Textbook Chapter 13
11	Bond Valuation, Bond Portfolios and Risk Management	Textbook Chapters 10,11
12	Futures Markets and Risk Management	Textbook Chapter 17
13	Portfolio Management Strategies: Active, Passive, Dynamic, Funds, International Diversification Risk Control, Portfolio Performance Evaluation and Performance Attribution	Textbook Chps. 18,19, 20
14	Portfolio Management Strategies: Active, Passive, Dynamic, Funds, International Diversification Risk Control, Portfolio Performance Evaluation and Performance Attribution	Textbook Chps. 18,19, 20
15	Ethics Case	CFA Institute Code of Ethics and Standards of Professional Conduct

Recommended Sources

Textbook	Essentials of Investments, Bodie, Kane, and Marcus, 8e, McGraw-Hill/Irwin.
Additional Resources	Course website, lecture notes, financial markets lab, virtual portfolio management program, scientific calculator, online resources and spreadsheet software. CFA Online sources such as the CFA Institute Code of Ethics and Standards of Professional Conduct

Material Sharing

MATERIAL SHARING
Documents	Guidelines and additional examples for lecture topics, bonus homework/lab assignments and simulation, virtual portfolio management program.
Assignments	Term Project and bonus of Homework/Lab assignments, simulation
Exams	Midterm Exam and Final Exam

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Midterm Exam (Required)	1	30
Term Project (Required)	1	20
Simulation (Conditional Bonus)	1	10
Homework Assignments (Conditional Bonus)	10	15
Total		100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		50
CONTRIBUTION OF REQUIRED IN-TERM STUDIES TO OVERALL GRADE		50
Total		100

Course’s Contribution to Program

Program Learning Outcomes	Contribution
Program Learning Outcomes	1	2	3	4	5
1. To understand the core principles of finance and to be able to apply them both nationally and internationally.					X
2. To formulate solutions to finance problems by effectively using contemporary information technologies and up-to-date financial instruments.			X
3. To judge the best possible outcome to problems that require ethical and social responsibility-based thinking by identifying stakeholders and weighing alternative solutions.		X
4. To develop the necessary background to be able to work in multicultural and multilingual environments.	X
5. To analyze the developments in financial markets by interpreting and distinguishing among the factors affecting them.						X
6. To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.	X
7. To understand the structure of the global economic system and to be able to analyze how new developments will affect this structure.	X
8. To be able to use critical thinking ability in decision making process.						X
9. To develop and demonstrate the leadership, teamwork and communication skills that may be transferred to the lifelong learning process.
10. To interpret environmental and sustainability issues by implementing quality management processes.	X

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION
Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Including the exam week: 16x Total course hours)	15	3	45
Hours for off-the-classroom study (Pre-study, practice)	15	4	60
Mid-term	1	12,5	12,5
Term Project	1	20	20
Final examination	1	17	17
Total Work Load			154,5
Total Work Load / 25 (h)			6,18
ECTS Credit of the Course			6

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