Investment Management Techniques

Curriculum Guideline

Effective Date:
Course Code
FINC 4340
Investment Management Techniques
Commerce & Business Administration
Start Date
End Term
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
Contact Hours
Lecture: 3 Hrs. Seminar: 1 Hr. Total: 4 Hrs.
Method Of Instruction
Methods Of Instruction

A combination of lectures, supplementary materials & presentations and class presentations.

Course Description
This course will cover investments used to meet wealth accumulation objectives, the types of returns that can be earned from investments, the types of risk associated with each type of return, and the strategic investment planning process. The Efficient Markets Hypothesis (EMH) and the empirical evidence supporting its use are illustrated. Active and passive investment management strategies are demonstrated. The Canadian investment environment, the securities markets and the problems faced by investors are highlighted. The Portfolio Insurance techniques used by investment managers are covered. The emergence of derivative securities, such as options and futures contracts are shown as investment strategies.
Course Content
  1. Introduction of the investment environment
  2. Markets and investment instruments.
  3. Equilibrium in Capital Markets.
  4. Active investment management, active portfolio management, and performance measurement.
  5. How securities are traded.
  6. Introduction of portfolio management.
  7. Concepts and issues of return, risk, and risk aversion.
  8. Capital allocation between the risk assets and risk-free assets.
  9. Optimal risk portfolios.
  10. Index Models and the Arbitrage Pricing Theory.
  11.  International investment.
  12. Fixed income securities and portfolio management.
  13. Equities and security analysis.
  14. Technical analysis.
  15. Option valuation.
  16. Futures and forward markets.
Learning Outcomes

At the end of the course, the student should be able to:

  1. describe the investment environment and the capital markets;
  2. analyze risky and risk-free investment options and the performance measurement models;
  3. describe the features of bonds, debentures, common and preferred shares;
  4. evaluate and describe concepts of portfolio return, portfolio risk and risk-aversion strategies;
  5. describe strategies for optimal mix portfolios, capital allocation for portfolio mix;
  6. evaluate portfolio returns of a small, active portfolio;
  7. explain  financial derivates and how they are used in portfolio management;
  8. conduct an actual Fundamental and Technical Analysis on a given portfolio of capital assets;
  9. perform Charting Methods on Dow Jones buy and sell signals.
Means of Assessment
Midterm exams: (2)                   40%
Term Case Presentation  20%
Assignments  10%
Final Exam  30%
Total 100%


Textbook Materials

Textbooks and Materials to be Purchased by Student


Bodie, Kane, Marcus, Perrakis, Ryan. Investments: Canadian Edition (Latest Edition). Irwin Publishing