COURSE PLAN UKFF3283 PORTFOLIO MANAGEMENT

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

LKC FACULTY OF ENGINEERING AND SCIENCE (FES)
Bachelor of Science (Hons) Actuarial Science
Bachelor of Science (Hons) Financial Mathematics

Academic Year: 2019/2020

Trimester: October 2019

1. Course Code UKFF3283

& PORTFOLIO MANAGEMENT
Course
Name:
2. Programme Bachelor of Science (Hons) Actuarial Science
of Study: Bachelor of Science (Hons) Financial Mathematics

3. Year of Year Three

Study:
4. Year and 201910
Trimester:
5. Credit Hour: 3 credit hours

6. Lecturing 4 hours lecture per week for the duration of 7 weeks

and Tutoring 3 hours tutorial per week for the duration of 7 weeks
hours
7. Name(s) of Lead lecturer: Dr. Aik Nai Chiek (aiknc@utar.edu.my) (KA630)
Academic Tutor: Mr. Raymond Ling Leh Bin (linglb@utar.edu.my) (KA647)
Staff:
8. Moderator Dr. Siti Nurhidayah Mohd Roslen (nurhidayah@utar.edu.my) (KA633)

9. Mode of Lectures and Tutorials

delivery

10. Course On completion of this course, a student shall be able to:

Learning CLO1 Assess the risk and return by incorporating an asset allocation
Outcomes scheme, fundamentals (economic, industry and company factors)
(CLOs): and technical indicators in line with the various trading mechanisms
and long-term goal of diversifying the overall risk in a portfolio.
CLO2 Develop the securities’ valuation on long-term debt (bond), equity
(stock), futures and options using various discount models and
approaches, relative to mutual funds and other short-term
instruments in the overall financial market and institutions.
CLO3 Construct an optimal portfolio in line with the traditional portfolio
management and modern portfolio theory.

11. References: Main References:

1. Smart, S.B., Gitman, L.J. & Joehnk, M.D. (2017). Fundamentals of
investing (13th ed.). US: Pearson / Prentice Hall.

Additional References:
2. Bodie, Z., Kane, A., Marcus, A., & Jain, R. (2014). Investments (Asia
Global ed.). Singapore: McGraw-Hill Education.
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3. Jones, C. P. (2013). Investments: Principles and concepts (12th ed.).

Singapore: John Wiley & Sons.
4. Reilly, F. K., & Brown, K.C. (2018). Investment analysis and portfolio
management (11th ed.).US: Cengage Learning.

12. Constructive Alignment Table

No. Course PLO Domain & Delivery Assessment Task

Learning Taxonomy Method Mid- Group Final
Outcomes Level term Assignment Examination
(CLOs) Test
20% 20% 60%
1 CLO1 2 C4 F2F √
2 CLO2 6 C4 F2F √
3 CLO3 8 C5 F2F √
Domain – Affective (A), Cognitive (C), Psychomotor (P)
Taxonomy Level – A (Level 1-5), C (Level 1-6), P (Level 1-5)
F2F: Face to face delivery, AL: Action learning, CL: Collaborative learning, SDL: Self
directed learning, PBL: Problem/Project based learning, TD: Technology-based delivery,
EM: Experiential method, WBL: Work-based learning
13. Assessment
Methods: No. Method of Assessment Total
1. Continuous Assessment 40%
(a) Mid-Term Test 20%
(b) Group Assignment 20%
Total 40%
2. Final Examination 60%
3. Grand Total 100%

1. Continuous Assessment

Component (a): Mid-Term Test (20% of Total Assessment)

This test will be given in WEEK 3 to monitor students’ progress on the
understanding of the lectures and tutorials. The duration of the test will be
one (1) hour and CLOSED BOOK. The mid-term test covers Topics 1 to 4
(refer Teaching Plan below). Students are responsible to be aware of the
actual time and venue for the mid-term test which will be announced by the
lecturer in class. Attendance for the test is compulsory.

Component (b): Group Assignment (20% of Total Assessment)

This assignment is to examine the challenges of glove industry in Malaysia
with the use of fundamental analysis.

Students are advised to strictly comply with all requirements stated for the
assignment. Students are required to group themselves into a group of
FIVE members and register their grouping in the Google form via url link
provided.

The assignment must be only 3,500 to 4,000 words in length. All

information sources and any relevant data used in the assignment must be
COURSE PLAN UKFF3283 PORTFOLIO MANAGEMENT

included in the appendices. All books, journals or electronic references

(including webpage link and URL) used in the preparation of the report
must be clearly and appropriately referenced in footnotes or appendix using
APA academic referencing.

Students should only use the Bloomberg to download all the relevant data
for your assignment.

Assignment hand-in date: WEEK 4. Each group is required to submit

both hardcopy and softcopy of their work according to the format stated in
assignment question. Failure to present and submit assignment before the
due date will be subject to Late Submission Penalty Clause.

Plagiarism checking with Turnitin should be conducted and result should

be included in the report. Any assignment groups that are caught
plagiarising or letting part or whole of their work to be plagiarised will be
penalised, with all the groups involved be awarded ZERO (0) mark for the
assignment. In addition, the students involved could face disciplinary
action from the University. (please read Plagiarism below)

Late Submission Penalty Clause

Deadline for submission of assessment item(s) is to be strictly adhered to.
No extension of time will be allowed except in extenuating circumstances,
e.g. medical reasons. Students who wish to apply for extension of time for
submission of assessment item(s) after the due date shall put in writing the
request together with validated documentary evidence to support the
application to his/her class tutor. The lead lecturer may consider and grant
such extension of due date for the assessment item(s) based on the tutor's
recommendation. Any assessment item required by the Coursework
Assessment which is submitted after the due date, without an approved
extension, will be penalised. A penalty of 10% (from awarded marks) for
each calendar day of delay from the specified deadline will apply. No
assignment submitted FIVE (5) calendar days after the due date will be
accepted and hence the assignment will be awarded ZERO (0) mark.

2. Final Examination (60% of Total Assessment)

The final examination for this subject will be TWO AND A HALF
HOURS (2.5) closed-book written examination and it consists of TWO
sections. In Section A (40 marks), students are required to answer ONE
COMPULSORY question. In Section B (60 marks), students are required
to answer ANY TWO (2) questions of 30 marks each out of 3 questions.

Students are highly advised to purchase a financial calculator each

because parts of the final examination questions will require the use of
financial calculator.

Aggregate Marks
Students must achieve at least 50 marks out of the aggregate marks for
coursework and final examination in order to Pass this course with a grade
C. Failure to achieve this will result in repeat for this course in future
trimester.
COURSE PLAN UKFF3283 PORTFOLIO MANAGEMENT

14. Remarks INDEPENDENT LEARNING

As a second year university student, you are expected to undertake
independent learning and reading up on each topic in addition to attending
lectures and tutorials each week. To assist you to do this, a schedule of
recommended reading has been prepared. Business Finance is a dynamic
subject and you are also expected to keep up-to-date with current events by
reading the financial pages of the newspapers and financial magazines,
such as:

Online source
Malaysia
 http://www.sc.com.my/
 http://www.bnm.gov.my/
 www.bursamalaysia.com
 http://biz.thestar.com.my/
 http://www.theedgedaily.com/

International
 http://www.asiamoney.com/
 http://www.ft.com/home/asia
 http://online.wsj.com/public/asia
 http://www.forbes.com/finance/
 http://www.bloomberg.com/index.html?Intro=intro3

Magazine
 Asia Inc
 Asia Money
 Focus
 Money Compass (in Chinese)
 Personal Money published by The Edge
 Smart Investor
 The Edge
 The Star BizWeek published by The Star

ACADEMIC REGULATIONS

Plagiarism
Plagiarism is defined as the submission or presentation of work, in any
form, which is not one's own, without acknowledgment of the sources. If a
student obtains information or ideas from an outside source, that source
must be acknowledged. Another rule to follow is that any direct quotation
must be placed in quotation marks and the source immediately cited.
Plagiarism is also defined as copy of all or part of the work of another
student(s) of current or previous batch of this University or another higher
learning institution.

The University's degree and other academic awards are given in

recognition of the candidate's personal achievement. Plagiarism is therefore
considered as an act of academic fraudulence and as an offence against
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University discipline.

Intellectual Property
Copyright must be seriously protected. The University takes a strong stand
against any illegal photocopying of textbooks and any other materials by
students. Students are forewarned of the consequences and the penalty that
may be meted out if they are "caught in the act".

Mode of Referencing
Students are advised to incorporate proper academic modes of referencing.
The normally acceptable mode of academic referencing is the American
Psychological Association (APA) system.
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Teaching Plan – Weekly Schedule

Lecture, Tutorial and Continuous Assessment Plan

Week/Date Lecture Topic Course Tutorial Topics/ Reference
Learning Continuous
Outcomes Assessment
Week 1 Topic 1: Introduction to 1 Tutorial 1 Gitman
investing General discussion on Chapter1
 Investment and the investment learning outcomes and
process tutorial preparations
 Investment vehicles
 Making investment plans Assignment
 Meeting liquidity needs: Date given: Week 1
Investing in short term Due date: Week 4
vehicles

Week 1 Topic 2: Trading of Securities: 1,2 Tutorial 2 Gitman

- Market and transactions Minimum 3 short Chapter 2
- Investment information and answered questions & & Chapter
securities transaction 1 case problem 3
 Securities markets
 Globalization of securities
markets
 Trading hours and regulation of
securities markets
 Basic types of securities
transactions
 Online investing
 Types and sources of
investment information
 Understanding market averages
and indexes
 Making securities transactions
 Investment advisers and
investment clubs

Week 2 Topic 3: Return and Risks: 1 Tutorial 3 Gitman

- Introduction to Financial Minimum 3 short Chapter 4
calculators answered questions &
 The concept of return 1 case problem
 The time value of money
 Measuring return
 Risk: The other side of the coin
 Interest: The basic Return to
Savers
 Computational aids for use in
time value calculations
 Future value
 Present value

Week 2 Topic 4: Modern Portfolio 3 Tutorial 4 Gitman

Concepts Minimum 3 short Chapter 5
 Principles of portfolio planning answered questions &
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Lecture, Tutorial and Continuous Assessment Plan

Week/Date Lecture Topic Course Tutorial Topics/ Reference
Learning Continuous
Outcomes Assessment
 The Capital Asset Pricing 1 case problem
Model (CAPM)
 Traditional versus modern
portfolio management
 Constructing a portfolio using
asset allocation scheme

Week 3 Topic 5: Mutual Fund: 2,3 Tutorial 5 Gitman

Professionally Managed Minimum 3 short Chapter 12
Portfolios answered questions &
 The mutual fund concept and 1 case problem
phenomenon
 Types of funds and services
 Investing in mutual funds
 Investment company
performance

Topic 6: Managing Your Own 1,3 Tutorial 6 Gitman

Portfolio Minimum 3 short Chapter13
 Constructing a portfolio using answered questions &
an asset allocation scheme
1 case problem
 Portfolio planning in action
 Evaluating the performance of
individual investments
 Assessing portfolio Mid- term test (1
performance hour)
 Timing transactions
Continue with
lecture

Week 4 Topic 7: Investing Common 2,3 Tutorial 7 Gitman

Stock Minimum 3 short Chapter6 &
 What stocks have to offer? answered questions & Chapter 7
 Basic characteristics of 1 case problem
common stocks
 Common stock dividends
 Types and uses of common
stocks Assignment due date
 Analyzing and managing
common stocks
 Security analysis
 Economic analysis
 Industry analysis
 Fundamental analysis
COURSE PLAN UKFF3283 PORTFOLIO MANAGEMENT

Lecture, Tutorial and Continuous Assessment Plan

Week/Date Lecture Topic Course Tutorial Topics/ Reference
Learning Continuous
Outcomes Assessment
Week 4 Topic 8: Stock valuation 2 Tutorial 8 Gitman
 Valuation: Obtaining a Minimum 3 short Chapter 8
standard of performance answered questions &
 Preferred Stock valuation 1 case problem
models
 Common Stock valuation
models

Week 5 Topic 9: Technical Analysis, 2 Tutorial 9 Gitman

Market Efficiency and Minimum 3 short Chapter9
Behavioural Finance answered questions &
 Technical analysis 1 case problem
 Random walks and efficient
markets
 Behavioural finance: A
challenge to the efficient
market hypothesis

Week 5 Topic 10: Fixed Income 1 Tutorial 10 Gitman

Securities Minimum 3 short Chapter 10
 Why invest in bonds? answered questions &
 Essential features of a bond 1 case problem
 The market for debt securities
 Convertible securities
 Trading bonds

Week 6 Topic 11: Bond Valuation 2 Tutorial 11 Gitman

 The behavior of market interest Minimum 3 short Chapter 11
rates answered questions &
 The pricing of bonds 1 case problem
 Measures of yield and return
 Duration and immunization
 Bond investment strategies Coursework marks
 Analysis and management of to be released
bonds
(subject to internal
moderation)

Week 6 Topic 12: Options: Puts and Tutorial 12 Gitman

Calls 2 Minimum 3 short Chapter 14
 Put and call options answered questions &
 Options pricing and trading 1 case problem
 Stock index and other types of
options
 Warrants
 An investor’s perspective on
puts and calls
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Lecture, Tutorial and Continuous Assessment Plan

Week/Date Lecture Topic Course Tutorial Topics/ Reference
Learning Continuous
Outcomes Assessment
Week 7 Topic 13: Commodities and Tutorial 13 Gitman
Financial Futures 2 Minimum 3 short Chapter 15
 The futures market answered questions &
 The mechanics of trading 1 case problem
 Commodities
 Financial futures Tutorial 14
Minimum 3 short
answered questions &
1 case problem

Week 7  Revision

This Course Plan is:

Prepared by: Moderated by: Approved by:

______________________ ______________________ _____________________________

(Name: Dr. Aik Nai Chiek) (Name: Dr. Siti Nurhidayah ) (Name: Ms. K Shamini a/p T Kandasamy)
Lead Lecturer Moderator Head of Department
Date: Date: Date:
Notes: The information provided in this Course Plan is subject to change by the Lecturer.
Students shall be notified in advance of any changes via WBLE.