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
Understanding Investments
Investment Alternatives
Indirect Investing
Securities Markets
How Securities are Traded
The Returns and Risks from
Investing
Subtopics
The nature of investments
Understanding the investment decision process
Organizing financial assets
Money market securities
Fixed-income securities
Equity securities
Derivative securities (Futures and Options)
Investment company
Types of investment companies
Major types of mutual funds
Net Asset Value
Mutual Fund Returns
Primary markets
Secondary markets
Brokerage transactions
How orders work
Margin
Short sales
Return
Measuring returns
Taking a global perspective

Portfolio Theory
Portfolio Selection and
Portfolio Performance
Evaluation
Asset Pricing Models
Common Stock Valuation
Economy/ Market Analysis
Sector/ Industry Analysis
Technical Analysis
Future Contracts
Option Contracts
Recommended Books:
Charles P. Jones. Investments Analysis and Management 10e
Kane Bodie Marcus. Essentials to Investments 7e
Measuring risk
Realized returns and risks from investing
Dealing with uncertainty
Portfolio return and risk
Analyzing portfolio risk
Modern portfolio theory
Measuring co-movements in security returns
Calculating portfolio risk
Efficient portfolios
Indifference curves
Building a portfolio using Markowitz principles
Estimation of minimum variance portfolio
Impact of diversification on risk
Single index model
Capital market theory
Equilibrium return-risk tradeoff
Estimating SML
Multi Factor Models
Fama and French Model
Discounted cash flow techniques
Relative valuation techniques
Assessing the economy
Analyzing sector/ industry
Stock price and volume technique
Technical indicators
Features
Pricing
Swaps
Features
Valuation
Black Scholes Model