INSTITUTE OF MANAGEMENT SCIENCES

HAYATABAD PESHAWAR

Course In Charge Dr. Attaullah Shah

Programme: MBA
Course Title: Investment Analysis & Portfolio Management
Course Code: BBA
Nature of Course: Core Course, 3 Credit-Hour
Course Objectives:

Objectives of the course are to:

Know investment alternatives

Optimally diversify and make efficient portfolios
Allocate funds between risk-free and risky assets and choose portfolio as par the risk
tolerance of investors
Know and practice to trade at KSE
Know how margin financing at KSE works
Calculate cost of equity with CAPM and DDM
Value stocks and bonds and find under/over-valued stocks
Understand various technical indicators like stochastic oscillator, MACD, DMA, RSI etc.

Course outline
Topic Subtopics
Understanding Investments
The nature of investments

Understanding the investment decision process

Investment Alternatives
Organizing financial assets

Money market securities

Fixed-income securities

Equity securities

Derivative securities (Futures and Options)

Indirect Investing
Investment company
 Types of investment companies

Major types of mutual funds

Net Asset Value

Mutual Fund Returns

Securities Markets
Primary markets

Secondary markets

How Securities are Traded

Brokerage transactions

How orders work

Margin

Short sales

The Returns and Risks from

Investing Return

Measuring returns

Taking a global perspective

Measuring risk

Realized returns and risks from investing

Portfolio Theory
Dealing with uncertainty

Portfolio return and risk

Analyzing portfolio risk

Modern portfolio theory

 Measuring co-movements in security returns

Calculating portfolio risk

Efficient portfolios

Portfolio Selection and

Portfolio Performance Indifference curves
Evaluation
Building a portfolio using Markowitz principles

Estimation of minimum variance portfolio

Impact of diversification on risk

Single index model

Asset Pricing Models

Capital market theory

Equilibrium return-risk tradeoff

Estimating SML

Multi Factor Models

Fama and French Model

Common Stock Valuation

Discounted cash flow techniques

Relative valuation techniques

Economy/ Market Analysis Assessing the economy

Sector/ Industry Analysis Analyzing sector/ industry

Technical Analysis
Stock price and volume technique

Technical indicators
Future Contracts
Features

Pricing

Swaps

Option Contracts
Features

Valuation

Black Scholes Model

Recommended Books:

Charles P. Jones. Investments Analysis and Management 10e

Kane Bodie Marcus. Essentials to Investments 7e