SYLLABUS

AKU 4612 – PORTFOLIO AND INVESTMENT ANALYSIS

Prerequisite: MAN 2101
Credit Hours: 3

Instructor:
Prof. Jogiyanto Hartono, M, MBA, Akt
Accounting Department, Faculty of Economics and Business, Universitas Gadjah Mada
Office Hours: Tuesday, 14.00-16.00

Course Description
This course will discuss the issue related to modern portfolio theories. It covers the discussions
about the characteristics and analysis of individual securities, as well as with the theory and
practices of creating portfolios.
Makowits in the 1950s published seminal articles and a book on portfolio theory. His work
provided a way to methodologically deal with security risk and return. Subsequently, the original
Capital Asset Pricing Model was developed by Sharpe along with Lintner and Mossin in the
1960s. later, in the 1970s, Black and Scholes published articles on the pricing of options. With
this array of theories, it is no possible to approach the field of investments in a rigorous manner.
Based on those theories, this course will deal with an understanding of the investment
environment, instruments and process. The investment environment includes the kinds of
marketable securities that exist where securities can be bought and sold. The investment
instruments discussed are bonds, stocks, and other assets such options. The investment process
concern with certain decisions a investor has to make. The decisions concern how much to invest
and when to make the investment.

Course Material
Required:
Jones, C.A. Investment Analysis and Management. New York: John Wiley & Sons, Inc.,
Eleventh Edition, 2012.
Hartono, Jogiyanto. Teori Portofolio dan Analisis Investasi, Yogyakarta: BPFE UGM, 8th
edition, 2013.

Grading
Your grade will be determined based on your total score on the following items:
Mid Exam 25%
Final Exam 25%
Class Participation 25%
Big Paper 25%
100%
Your final score will be mapped to a course grade based on the following scheme:
A 90 or above C+ 60 to 69
A- 85 to 89 C 55 to 60
B+ 80 to 84 D below 55
B 75 to 89
B- 70 to 74

Course Outline

Week Topic Homework

1 Overview
2 Understanding investment (Jones Ch. 1-3); Jogiyanto Ch. 1) Q1-1, 1-5, 1-7, 1-12,
1-17
Q2-1, 2-21
Q3-14, 3-20
3 Security Markets (Jones Ch. 4-5; Jogiyanto Ch 2-3) Q4-4, 4-6
Q5-3, 5-20
P5-4
4 Common Stock Valuation and Analysis (Jones Ch. 10; Q10-1, 10-4, 10-12
Jogiyanto Ch. 4-5) P1—23
5 Return and Risk for Individual Asset (Jones Ch. 6; Q6-1, 6-14, 6-15
Jogiyanto Ch. 7) SE6-1
6 Return and Risk for Portfolio (Jones Ch. 7; Jogiyanto Ch. 8) Q7-6, 7-19
SE7-1
7 Portfolio Selection (Jones Ch. 8; Jogiyanto Ch. 9) Q8-6, 8-18, 8-21
P8-1
Mid Exam
8 Single Index Model (Jones Ch. 8; Jogiyanto Ch. 10) Q8-10, 8-11, 8-12
9 CAPM (Jones Ch. 9; Jogiyanto Ch. 14) Q9-3, 9-4, 9-33, 9-34
10 Beta (Jogiyanto Ch. 11-12) P9-3
SE9-1
11 Bond (Jones Ch. 17; Jogiyanto Ch. 6) Q17-2, 17-3, 17-19,
17-27
P17-1
12 Market Efficiency (Jones Ch. 12; Jogiyanto Ch. 15-17) Q12-1, 12-2, 12-11
13 Options (Jones Ch. 19; Jogiyanto Ch. 13) Q19-2, 19-11
P19-2
SE19-1
14 Portfolio Management and Evaluation (Jones Ch. 21, 22; Q21-1
Jogiyanto Ch. 18) Q22-4, 22-9
P22-1
Final Exam