This course will integrate concepts and theories studied to date and develop the foundations of portfolio management. Topics to be covered include efficient markets, systematic and unsystematic risk, diversification, the capital asset pricing model, portfolio selection, index and mutual funds, and risk management.
Methods Of Instruction
Material will be presented within a lecture format.
Means of Assessment
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
At the end of the course, the successful student should be able to:
- Differentiate between systematic and unsystematic risk.
- Analyze the risk/return criterion and apply it to security/portfolio selection.
- Explain the relationship between selected portfolios and the market portfolio and apply computer algorithms to examine the relationship.
- Assess mutual fund performance relative to the market.
- Explain the composition and limitations of various index funds and indexes.
- Develop risk management techniques through international diversification and the use of options.
- Examine the limitations and weaknesses of the various theories and models.
Textbooks and Materials Purchased by Students
As chosen by the instructor from:
C Bodie et al. Investments, Latest Canadian Ed. McGraw-Hill Ryerson.
C Reilly, F. & K. Brown. Investment Analysis: Portfolio Management, Latest Ed. Thompson-South-Western.
C Radcliffe, R. Investment Concepts Analysis Strategy, Latest Ed. Addison-Wesley.
C Haugen, Robert A. Modern Investment Theory, Latest Ed. Prentice Hall.