Department of Business Administration

Course Outline & Class Calendar

Semester: Fall 2018
Program: Master of Business Administration
Semester: Fall 2018
Program: MBA
Instructor Name: Md. Zahidur Rahman Course Title: Security Analysis and
Designation: Lecturer Portfolio Management
Contract Hour/ Room: 314 Course Code: FIN 602
Phone/Cell: 01745335778 Course Credit Hour/Per Week: 03 Hour
Email: zahidrahman@yahoo.com Class/ Per Week: 1 (One)
Day Off: Monday & Wednesday Class Day / Lecture Hour: Friday
Room Number: 307

Course Description: This course aims at providing an in depth knowledge of the theory and practice of portfolio
management. It will provide students with an understanding of procedures involved in portfolio management-optimal
portfolio construction, risk-return measurement, determining investment policy, fundamentals of security valuation and
evaluation of financial portfolios. Students will first be introduced to the portfolio formation and asset allocation process.
After revisiting the mathematics of portfolio construction and diversification, students will be able to develop an
understanding of equity portfolio management strategies and portfolio performance evaluation. This course aims to
provide a solid background for those who are interested in the conceptual framework and real word practice of portfolio
management and who plan to work in the investment management industry in any capacity.

Course Learning Objectives:

1. Analyze investments and manage portfolios and make appropriate decisions in the area of investment analysis and
portfolio management
2. Calculate and interpret expected risk and return measures for individual securities and a portfolio of securities
3. Value the equities and bonds
4. Assess portfolio performance

Course Contents

01. Introduction to Portfolio & Investment
02. Fundamental Analysis: Economy Analysis
03. Industry and Company Analysis
04. Share Valuation
05. Bond Valuation
06. Technical Analysis & Efficient Market Theory
07. Portfolio Analysis
08. Portfolio Selection
09. Capital Asset Pricing Model (CAPM)
10. Portfolio Revision and Evaluation

Instructor Initial Sign

 Uniform Class Calendar

Classes Contents Topic Covered/ Classes Teaching Methods

Class 01 Introduction to Portfolio Management; Phases of Portfolio Lecture, Assignment
Portfolio & Management; Markowitz Portfolio; Investment;
Investment Characteristics; Investment Versus Speculation; Types
of Investors.
Class 02 Fundamental Fundamental Analysis; Economy Analysis: Economic Lecture, Assignment
Analysis: Economy Forecasting; Economic Forecasting Techniques:
Analysis Anticipatory Survey, Barometric of Indicator Approach,
Econometric Model Building, and Opportunistic Model
Building.
Class 03 Industry and Industry Analysis: Concept of Industry, Industry Life Lecture, Assignment,
Company Analysis Cycle; Industry Characteristics; Company Analysis: Exercise, Problem Solving.
Financial Statements; Analysis of Financial Statements,
other Variables.
Class 04 Share Valuation Share Valuation: One-Year Holding Period, Multiple- Lecture, Assignment,
Year Holding Period; Constant Growth Model; Multiple Exercise, Problem Solving.
Growth Model; Multiple Approach to Share Valuation.
Class 05 Bond Valuation Estimating Bond Returns: Coupon Rate, Current Yield, Lecture, Assignment,
Yield to Maturity, Estimating Bond Prices; Bond Risks: Exercise, Problem Solving.
Default Risk, Interest Rate Risk; Bond Duration.
Class 06 Technical Analysis & Technical Analysis; Basic Principles of Technical Lecture, Assignment,
Efficient Market Analysis; The Efficient Market Hypothesis; Forms of Exercise, Problem Solving.
Theory Market Efficiency; EMH Versus Fundamental and
Technical Analysis.
Class 07 Portfolio Analysis Expected Return of Portfolio; Risk of Portfolio; Lecture, Assignment,
Reduction of Portfolio Risk through Diversification: Exercise, Problem Solving.
Security Returns Perfectly Positively Correlated,
Class 08 Portfolio Analysis Security Returns Perfectly Negatively Correlated, Lecture, Assignment,
Security Returns Uncorrelated; Risk-Return Exercise, Problem Solving.
Calculations of Portfolios with more than Two
Securities.
Class 09 Portfolio Selection Feasible Set of Portfolios; Efficient Set of Portfolios; Lecture, Assignment,
Efficient Frontier; Selection of Optimal Portfolio; Single Exercise, Problem Solving.
Index Model;
Class 10 Portfolio Selection Measuring Security Return and Risk under SIM, Lecture, Assignment,
Measuring Portfolio Return and Risk under SIM. Exercise, Problem Solving.
Class 11 Capital Asset Pricing Meaning of CAPM; Assumptions of CAPM; Capital Lecture, Assignment,
Model (CAPM) Market Line versus Security Market Line; Applications Exercise, Problem Solving.
of SML and CML; Pricing of Securities with CAPM.
Class 12 Portfolio Revision Portfolio Revision Strategies; Portfolio Evaluation: Lecture, Assignment,
and Evaluation Measuring Risk-Adjusted Returns; Sharpe’s Exercise, Problem Solving.
Performance Measure, Treynor’s Performance Measure,
Jensen’s Performance Measure.

Required Texts: Security Analysis and Portfolio Management, S. Kevin (PHI Publications)
Reference Texts:
1. Reilly, F.K., and K.C. Brown, 2012, Investment Analysis and Portfolio Management, 10 th edition,
Cengage Learning.
2. Security Analysis and Portfolio Management, 6e, Fischer DE & Jordan R J (Prentice Hall).

Instructor Initial Sign

Important Guidelines for the Students:

1. Class attendance is mandatory. Absent of 70% classes; disqualify the student for final examination only authority
recommendation will be accepted with highly reasonable causes.
2. Dates for exams will be strictly followed. No makeup exam (Normal case), for exceptional case university rules and regulation
should be followed.
3. Late submission of assignments is not allowed. Late submission of assignments will be only taken with highly reasonable
causes but 20% mark will be deducted.
4. To pass this course student will have to appear mid-term and final examination.
5. Students must bring his/ her own books, scientific calculator, pen, pencil, and scale (plastic) in class room.
6. Switch off or vibrate the mobile phone during the class time. Mobile phone and smart watch is prohibited in the exam hall.
7. Students interact with instructor with a friendly wits, feel free and happy mood.

Evaluation

Topic Percentage of
Evaluation
Final Exam 40%
Mid Term Exam 30%
Quiz / Class Test 10%
Assignment (with viva or presentation) mark is equally treated 10%
Attendance, Class Participation & Student Behavior and Attitude. 10%
Total 100%
**Grading Policy follows as per the rules of City University & UGC**

Grading Policy: City University

Marks Grade Grade Point Remarks

80 - 100% A+ 4.00 Outstanding
75 - 79% A 3.75 Excellent
70 - 74% A- 3.50 Very Good
65 -69% B+ 3.25 Good
60 - 64% B 3.00 Satisfactory
55 - 59% B- 2.75 Above Average
50 - 54% C+ 2.50 Average
45 - 49% C 2.25 Below Average
40 - 44% D 2.00 Pass
0 - 39% F 0.00 Fail

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Instructor Signature Approved by Authority (HOD/ DEAN)

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Blueprint: SPZ (HOD, DBA, CU)