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Summary of information on each course/module


Name of Course/Module
Security Investments and Portfolio
Management
Course Code
BAC3684
Status of Subject
Minor
MQF Level/Stage
Bachelor MQF Level 6
Note :
Certificate MQF Level 3
Diploma MQF Level 4
Bachelor MQF Level 6
Masters MQF Level 7
Doctoral MQF Level 8
Credit Value
3 Credit
Version
Date of Previous Version : September 2005
Date of Current Version : April 2011
(state the date of the last Senate approval)
Pre-Requisite
Name(s) of academic/teaching staff

BAC2644 Corporate Finance


Peong Kwee Kim, B. Sc (Hons), MBA
(Finance)
Noor Ashikin Mohd Rom, BA (Hons)
Accounting & Finance (UK) & MBA (Mal)

9.

Semester and Year offered

Delta level, Trimester 2

10. Rationale
This subject constitutes the accounting, finance and related knowledge component as
recommended in the Halatuju 2 Reassessment Report on Accounting Programme at Public
Universities of Malaysia 2006.
11. Synopsis of subject:
This course describes the underlying principle of investments. A good investment decision
combines both the fundamental and technical analysis of an investment vehicle. Therefore this
course describes the theoretical aspect of fundamental analysis and technical analysis, as well
as to find the correct value of securities. Besides that, the course also explains how to do stock
selection and securities valuation to optimize investment returns. It also describes the benefit
of portfolio management and how correctly combined securities in a portfolio able to reduce
the risk of the portfolio. These theories are applied in a real life using real stock prices. The
calculation applies on how to calculate risk and return for individual securities, as well as
portfolio risk and returns.
Objective of the course/module in the programme :

13. This course provides an introductory concept, investment process, share market and trading
act, type of securities, statistic and basic mathematics for investment, risk and return, financial
statement analysis, fundamental analysis, technical analysis and Dow theory. This course will
also discuss the development of economy, business and share price. The investment strategy
includes risk, portfolio analysis strategy, modern theory portfolio, random walk theory and
efficient market hypothesis.
15. Subject Learning Outcomes :
At the completion of the subject, students should be able to perform the following tasks:
LO1: Discuss the concept of investments and valuations (Cognitive level 2)
LO2: Apply the fundamental (market, industry, and company analysis) and technical analyses
in investment (Cognitive level 3).
LO3: Compare fixed income securities and derivatives (Cognitive Level 4)
LO4: Compute bond yields and bond duration (Cognitive Level 3).
17. Mapping of Subject to Programme Outcomes:
% of
contribution
PO6
28.6%

Ability to understand strategic dimension of accounting


& auditing and provide recommendations to various
accounting and business issues
PO7
57.1%

Ability to integrate knowledge in other business-related


areas in order to meet professional needs and to develop
entrepreneurial skills
PO8
14.3%

Ability to work independently as well as others in a team


22. Teaching Learning Strategies
The approach towards learning strategy are through:
- Lectures based method of instructional strategy in classroom that provides a way to
communicate and disseminating a large amount of information.
- Active learning strategy that allows student to talk and listen, read, write and reflect as
they approach course content through problem solving exercise and case studies all of
which requires student to apply what they have learned.
- Cooperative/group collaberation learning that encourges student to forms groups and
work together that engages student in active discussion about issues and problem. Foster
students communication skills, promote thinking and decision making skills.
23. Assessment Methods
Type
Percentage
Assignment/Project
Individual/Group
20%
Midterm exam
Written Exam (No MCQs)
15%
Final exam
Written Exam (No MCQs, 3
65%
hours exam)
27. Details of Subject
Topics
Mode of Delivery
Lecture
Tutorial

1. Introduction to Investment
Investments : Background and Issues
Real Assets vs Financial Assets
Financial Markets and the Economy
Investment Process
Market Players

2. Security Analysis Pt. 1


Macroeconomic and Industry Analysis
The Global Economy
Domestic Macroeconomy
Interest Rates
Business Cycles
Industry Analysis

3. Security Analysis Pt. 2


Equity Valuation
Balance sheet valuation method
Intrinsic value vs market price
Dividend discount model
PE ratios

4. Security Analysis Pt. 3


Financial Statement Analysis
Major financial statement
Accounting vs economic earnings
Return on equity
Ratio analysis
Comparability problem

5. Security Analysis Pt. 4


Technical Analysis
Charting
Technical indicators

6. Financial Markets and Instruments


The Money Market
The fixed income capital market
Equity securities
Indexes
Derivative markets

7. How Securities Are Traded


How firms issue securities
Where securities are traded
Trading on exchanges
Terminology in trading

8. Mutual Funds, Other Investment Companies and


Investors
Investment companies
Mutual funds
Investors objectives and constraints
Investment policies

9. Portfolio Theory Pt.1


Risk and return
Rates of returns
Risk and risk premiums
Historical records
Asset Allocation across risky and risk-free portfolio

10. Portfolio Theory Pt.2


Efficient Diversification and Capital Asset Pricing
Diversification and portfolio risk
Optimal risky portfolio with a risk-free asset
Capital asset pricing model

11. Portfolio Theory Pt. 3


The Efficient Market Hypothesis
Random walk and the efficient market hypothesis
Implications of the EMH for investment policy

12. Fixed Income Securities and Managing Fixed Income


Investments
Bond characteristics
Bond yield and pricing
Interest rate risk
Passive and active bond management

13. Derivative Assets : Options and Futures


Option contract
Options payoff
Futures contract

29. Details of the


Assignment

Title (example): Investment planning and portfolio management


Objectives: To lead the students to conduct an investment planning.
Nature of assignment: Stock and market analysis, report writing.
Description: Students are required to choose shares listed in stock
market and forming a portfolio using the amount of fund stated by
the lecturer. Students shall buy and sell the shares on a weekly
basis and write weekly summary base on their trading activities
and the stock market condition. At the end of the due date students
shall compare their portfolio performance with stock market
performance.
Student Learning Times: 12 hours

30. Total Student


Learning Time
(SLT)

Face to Face

Total Guided and Independent


Learning

Lectures

26

26

Tutorials

14

14

Laboratory
Practical

Presentation
Assignment (1)

12

Mid term test (1)

10

Final exam (1)


Sub Total

30

45

92

Total SLT

137

38. Reading Materials:


Textbook
Reference Materials
1. Reily, F.K. and K. C. Brown (2012),
1. Reily, F.K. and K. C. Brown (2008),
Investment Analysis and Portfolio
Investment Analysis and Portfolio
Management, 10th ed. Thomson SouthManagement, 9th ed. Thomson SouthWestern, USA. (Book on order)
Western, USA. (call #: HG4521 .R45
2009)
2. Gitman, Lawrence J. and Joehnk, Michael
D. (2008). Fundamentals of Investing,
2. Jones, Charles P., (2004) Investments,
10th. ed. Pearson-Addison Wesley. (call #:
10th ed. John Wiley and Sons, South
East Asia . (call #: txt HG4521.J66
HG4521 .G58 2008)
2004)
3. Jones, Charles P., (2010) Investments;
3. Hirt, G.A, and S. B. Block (2008),
Analysis and Management, 11th ed. John
Fundamentals of Investments
Wiley and Sons, South East Asia. (Book
Management, 9th ed. McGraw-Hill,
on order)
USA. (Call #: HG4521.H57 2008)
4. Bodie, Z., Kane, A., and Marcus, A.
J., (2008), Essentials of Investments,
7th ed. McGraw-Hill, USA. (call #:
HG4521 .B63 1998)
5. Hearth, D. and Zaima, J.K. (1998).
Contemporary Investment;Security
and Portfolio Analysis, 3rd
ed.
Dryden
Press,
Orlando.
(HG4521.H43 2001)
6. Mayo,
Herbert
B.
(1998).
Investments: An Introduction, 5th
ed. Dryden Press, Orlando. (call #:
HG4521 .M39 2000)
7. Siong, Victor (1997). Investment, 1st
edition, Institut Bank-Bank Malaysia,
Kuala Lumpur(Book in Order).
41. Appendix (to be compiled when submitting the complete syllabus for the programme):
1. Mission and Vision of the University and Faculty
2. Mapping of Programme Objectives to Vision and Mission of Faculty and University
3. Mapping of Programme Outcome to Programme Objectives
4. Programme Objective and Outcomes (Measurement and Descriptions)
21.

Mapping of assessment components to Learning Outcomes (LOs)

Assessment
Component

Assignment

20

Test

15

Tutorial/Lab

Final Exam

65

LO1

LO2

LO3

LO4

100

100

20
18.75

15

81.25

65

22.
PO1

PO2

PO3

PO4

PO5

PO6

LO1

PO7
25

LO2

50

25

LO3

50

25

LO4

PO8

25

100

PO9

PO10