Institute of Business Administration UNIVERSITY OF DHAKA

Security Analysis & Portfolio Management Instructor: Mohammad Musa, Ph. D. Course Objectives: This is an advance level finance courses. The primary objective of this course is to provide students with basic tools to make better investment decisions. After completing this course, students are expected to learn how to develop a clear understanding of the practical implications of financial theory, acquire a framework for understanding the risk & returns on all financial assets, including stocks, bonds, and financial derivatives, how to form portfolios, how to evaluate portfolio performance, and understand how to avoid the psychological biases that trip up many investors. Course Contents: Topics that will be covered in this course include an understanding of bond and equity markets, risk and return, asset pricing theory and performance evaluation, efficient market hypothesis, psychology and the stock market, investment analysis, equity and bond valuation, option markets and strategies, and futures markets. Textbooks: 1. Investments by Bodie, Zvi, Kane, Alex, and Marcus, Alan, J., Eighth Edition, PrenticeHall of India Private Limited Tentative Class Schedule: Sl. No. Topics 1 2 3 4 5 6 7 8 9 10 The Investment Environment How Securities are Traded Risk Aversion & Capital Allocation to Risky Assets Optimal Risky Portfolios Index Models The Capital Asset Pricing Model The Efficient Market Hypothesis Behavioral Finance & Technical Analysis Empirical Evidence on Security Returns Bond Prices and Yields Chapters 1 3 6 7 8 9 11 12 13 14 1 2 2 2 1 No. of Classes 1 1 Summer 2011

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Managing Bond Portfolios Macroeconomic and Industry Analysis Equity Valuation Models Options Markets: Introduction Option Valuation The Process of Portfolio Management

16 17 18 20 21 26 2 2 1 1 1

Class Tests: There will be as many class tests as possible. The worst two would not be counted. Grading Policy: Grades are earned, not given. Grades will be based on attendance, home assignments, class tests, examinations. The distribution of points will be as follows: 1. Attendance 10 points 2. Class tests 30 points 3. Mid-Term Examination 80 point 4. Final Examination 100 points Total 200 points Examinations: Dates of the examinations will be announced in class.