Curriculum Guideline

Portfolio Management Techniques

Effective Date:
Course
Discontinued
No
Course Code
FINC 4360
Descriptive
Portfolio Management Techniques
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 Hrs. Seminar: 1 Hr. Total: 4 Hrs.
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

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

Course Description
This course focuses on the business of investment decision making from the perspective of the portfolio manager with an emphasis on the delivery of sound investment advice and solid performance to investors. The course builds on earlier investment coursework and requires students to have taken a previous securities course. The course assesses the major components of the investment business from the client’s perspective and concentrates on the investment process, asset allocation and investment performance. In particular, the emphasis is on the job of managing a portfolio of securities within a mix of asset classes including equities, fixed income, and international alternatives. Learning tools and techniques include the use of Excel spreadsheets and the analysis of public data.
Course Content

1. Client objectives for diversified portfolios: risk and investor preferences.
2. Asset allocation: Portfolio analysis, Markowitz Risk-Return Optimization, Portfolio selection, delineation of efficient portfolios and techniques of calculating efficient frontiers.
3. The investment management process: Efficient market hypothesis and the key elements of the investment process.
4. Equity portfolio construction.
5. Fixed-income management.
6. Global investment opportunities.
7. Alternative investment classes.
8. Performance measurement and attribution.
9. Managing client relations.

Learning Outcomes

At the end of the course, the successful student should be able to:
1. evaluate and describe the techniques required to select an optimum portfolio;
2. describe various strategies of capital allocation to create optimal mix portfolios;
3. evaluate portfolio returns of a small, active portfolio;
4. explain the portfolio evaluation techniques of earning estimation and bond pricing techniques;
5. describe the valuation and uses of financial futures in the management of portfolios;
6. use real data of securities to estimate risk, estimate returns, and adjust the returns in accordance with inflation and money exchange rates;
7. select the appropriate asset mix for an investor’s profile;
8. estimate the capital allocation weights and asset allocation weights through the use of Excel spreadsheets in order to create an investment portfolio;
9. evaluate a portfolio’s performance and identify the main reasons that underlie its performance;
10. provide recommendations to clients (investors) to maintain an appropriate portfolio allocation.

Means of Assessment
Midterm exam(s)  30-40%
Portfolio Project(s)         20-30%
Presentation  10%
Final Exam  30%
Total 100%

       

Textbook Materials

Required: Stewart, S. D.; Piros, C. D.; Heisler, J. C. Running money: Professional Portfolio Management, McGraw-Hill Irvin, latest edition. (or other textbooks as approved by the department).

Only Faculty of Commerce and Business Administration approved calculators may be used for tests and examinations. (Texas Instruments BA II Plus, or Hewlett Packard 10B)

Prerequisites

(FINC 3350 or FINC 3390) with a grade of “C” or Instructor permission