Portfolio Management Techniques

Curriculum Guideline

Effective Date:
Course Code
FINC 4360
Portfolio Management Techniques
Commerce & Business Administration
Start Date
End Term
Not Specified
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(s) Of Instruction
Learning Activities

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%

Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.

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)


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


Courses listed here are equivalent to this course and cannot be taken for further credit:

  • No equivalency courses