INTERNATIONAL ISLAMIC UNIVERSITY

SECURUTY ANALYSIS AND PORTFOLIO MANAGEMENT

Instructor:
Muhammad Shoaib Abdullah
Contact email: Shoaib.abdullah@gmail.com

Course Objectives:
This course will be two tiers; one portion is a complete theoretical framework of the most
advance level of theoretical literature available in Finance. Second part is also very important; in
this student will be required to construct an actual portfolio by buying securities from stock
exchange and managing portfolio in the most professional manner. Thus it is a great opportunity
to apply the concepts along with real life experience of portfolio management. and a great
exposure to highly volatile conditions of market.
Course Description:
This course will be very demanding in terms of the time required to study, understand and apply
new concepts. It is suggested that students allocate a sizable chunk of their time to prepare for
the classes and complete all assignments from day one.
Reading Material and Text:
1. Investment Analysis and Portfolio Management (Latest Edition) (Reilly & Keith C.
Brown)
2. Fixed Income Analysis 1st edition (Frank J. Fabozzi)
3. Annual Report of State Bank of Pakistan Latest issue
4. Economic Survey of Pakistan. Latest Issue

Supplementary Material:
Business Recorder, Dawn, Financial Post, Business Week, Fortune, Forbes, Harvard Business
Review, Herald, Pakistan & Gulf Economist
Being students of Finance you are required to watch Pakistan Business Update and Pakistan
Business week regularly it will be an added advantage in class discussions and understanding
general business environment, there can be a quiz on any business news item.
Group Assignments:
Group work will be an important element of this course. Students will be completing the course
work in groups of 4 students each. Students may choose their own groups; group names are due
by 9th February 2011 via email. Read the following instructions carefully as your complete
understanding is of critical importance. Clarify any issues in the first week of class.
Each group will be responsible to prepare, submit and formal research report to the class on the
assigned day; the presentation will be for 20 minutes and should detail the intent and scope of
the research carried out, pedagogy used, contribution made and scope for further research.
Student groups should also reference the contribution the article had made on their
understanding of this area of finance.

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Guidelines for Team Assignments:
Successful collaboration combines the best that each team member has to offer. It enhances
creative thinking by providing new and different perspectives, innovative ideas, and solutions. It
enhances critical thinking by providing feedback, group support, and the chance to test ideas in
group discussions. You must all contribute to the research, editing, proofreading, etc or share the
responsibilities equally.

1. Appoint a Team Leader

2. Decide on how the team will be organized/function
3. Divide the tasks
4. Establish specific completion dates for each phase of the assignment
5. Decide on a meeting schedule and format
6. Establish procedure for responding to the work of other members
7. Establish a procedure for dealing with team members
8. Prepare a project management plan
9. Avoid interpersonal differences.
Finally, you will be responsible for writing an research report on a assigned industry. You can
use this report as an opportunity to refine contributions in a particular domain or to integrate
two or more schools of thought to address research questions of interest to you.

Grading criteria:
Research Report Presentations (Group) 20%
Midterm 20%
Final 50%
Portfolio -Assignment (s)(Individual) 10%

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Course Contents:

Investment Analysis and Portfolio Management

( Frank K Reilly & Keith C. Brown)
Session # Topic Chapter Page #
The Investment Setting Ch. 1 pp. 15-29
The Asset Allocation Decision Ch. 2 including Appendix
Selecting Investments in a Ch. 3 pp. 69-78 (pp. 68-77 in 5th edition)
Global Market
Selecting Investments in a Ch. 3 pp. 78-100 (pp. 77-99 in 5th edition)
Global Market
Organization and Functioning Ch. 4
of Securities Markets
Security-Market Indicator Ch. 5
Series
Efficient Capital Markets Ch. 7
An Introduction to Portfolio Ch. 8
Management
An Introduction to Asset Ch. 9
Pricing Models
An Introduction to Security Ch. 13
Valuation
Stock-Market Analysis Ch. 18 including p. 677 (p. 639 in 5th
edition)
Industry Analysis Ch. 19 pp. 746-770 (pp. 684-708 in 5th
edition)
Company Analysis and Stock Ch. 20 pp. 802-814, 830-835 and 845-850,
Selection (pp. 718-747 in 5th edition)
Technical Analysis Ch. 21

Fixed Income Analysis 1st edition (Frank J. Fabozzi)

Session # Topic Chapter Page #
Features of Fixed Income Ch. 1 pp. 1-32
Securities
Risks Associated with Investing Ch. 2 pp. 33-63
in Bonds
Overview of Bond Sectors and Ch. 3 pp. 65-111
Instruments
Understanding Yield Spreads Ch. 4 pp. 113-145

Derivatives
Session # Topic Chapter Page #
Introduction Ch. 1 pp. 1-7
Futures Markets Ch. 2 pp. 12-28
The Options Market Ch. 10 pp. 281-292 and pp. 295-298 (starting
at “Types of Orders” and ending at
“Commissions”)
Option Payoffs and Option Ch.11 pp. 304-316 and pp. 335-341
Strategies
The Swaps Market: Ch. 20 pp. 608-619
Introduction

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