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.
- The efficient markets hypothesis.
- Systematic and unsystematic risk.
- Market efficiency.
- The Mean-Variance criterion.
- The efficient frontier.
- The Capital Asset Pricing Model.
- Portfolio selection.
- Beta coefficient.
- Mutual funds performance.
- Index funds.
- International portfolios.
- Risk management, the use of options.
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.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.