Mgt 4412: Security Analysis & Portfolio Management
SYLLABUS
Management 4412A – Finance
University of Lethbridge
Fall, 2006
Instructor:
Class times:
Class Room:
Office:
Office Telephone:
Office Hours:
Email:
Robert Ironside, ABD Ph.D. (Finance)
Monday & Wednesday, 13:40-14:55
FA W763
E576
403-332-5244
Tuesday 10:00 to 12:00 PM, or by appointment.
robert.ironside@uleth.ca
PREREQUISITE: Management 3412 & 3470
COURSE MATERIALS: Investment Analysis & Portfolio Management, Frank K. Reilly &
Keith C. Brown, 8th Edition, Thomson South-Western.
An excellent supplementary text is Portfolio Construction, Management & Protection, Robert A.
Strong, Thomson South-Western, 2003.
COURSE OBJECTIVE: The purpose of this course is to introduce students to the theory and
practice of security analysis and portfolio management. Topics will include evaluation of equity
securities, bonds, and international investments and the role they play within a portfolio. The
course builds upon the material covered in MGT 3412 and MGT 3470. Specifically, we will
cover efficient markets theory, modern portfolio theory, asset pricing models, portfolio
management strategies, and portfolio performance evaluation. Attention will be given to
techniques used in building, managing, and evaluating the performance of portfolios of securities
within the constraints faced by institutional investors. Portfolio construction will be analyzed
through problems, assignments, and the study of research findings. Strategic and tactical asset
allocation decisions will be discussed within the framework of institutional portfolio
management.
COURSE REQUIREMENTS:
Grades will be determined by:
2 Midterm Exams (25% each)
1 Comprehensive Final Exam
1 Group Assignment
50%
40%
10%
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Mgt 4412: Security Analysis & Portfolio Management
Course Format:
Lectures, class discussion, assignments and examinations. The format of the course will be an
interactive-lecture format. Students are expected to actively participate in class, having read the
assigned chapter prior to class. Given the volume of material, it will be impossible to cover all
of the content during class.
Academic honesty
You are expected to adhere to the highest professional and ethical standards. Please become
familiar with the University Policy on academic dishonesty. Those caught cheating will be
penalized to the maximum permitted by University policy, which includes a final course grade of
“F” and referral to the Dean for disciplinary action.
Class Schedule:
September
6
11
13
18
20
25
27
October
2
4
9
11
16
18
23
25
30
November
1
6
8
13
15
20
22
27
29
December
4
6
Class Orientation & Introductions
Ch 1 The Investment Setting
Ch 2 The Asset Allocation Decision
Ch 3 Selecting Investments in a Global Market
Ch 4 Organization & Functioning of Securities Markets
Ch 5 Security Market Indexes
Ch 6 Efficient Capital Markets
Ch 7 Introduction to Portfolio Management
Midterm Exam #1 (Chapters 1 – 7)
Thanksgiving: Stat Holiday
Ch 8 Introduction to Asset Pricing Models
Ch 10 Analysis of Financial Statements
Ch 10 Analysis of Financial Statements
Ch 11 Security Valuation
Ch 12 Micro & Macro Analysis of the Stock Market
Ch 13 Industry Analysis
Ch 14 Company Analysis & Stock Valuation
Ch 15 Technical Analysis
Ch 16 Equity Portfolio Management Strategies
Stat Holiday
Exam #2 (Chapters 8, 10 - 16)
Ch 17 Bond Fundamentals
Ch 18 Analysis & Valuation of Bonds
Ch 19 Bond Portfolio Management Strategies
Ch 24 Professional Asset Management
Ch 25 Evaluation of Portfolio Performance
Review
Students are expected to complete exams and projects at the scheduled times. Make-up exams
will not be given except in extreme situations and with prior notification.
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Mgt 4412: Security Analysis & Portfolio Management
Physical or Learning Disabilities:
Please let me know if you have a physical condition or learning disability that may impact your
academic activities in this class.
Grades
A+
95-100
A
90-94
A86-89
B+
B
B-
82-85
78-81
74-77
C+
C
C-
70-73
66-69
62-65
D+
D
F
58-61
50-57
00-49
Portfolio Project (Group Project) due December 6, 2006
I have enrolled the class in a stock market simulation game run by investopedia.com. There will
be ten teams with either four or five individuals per team. Each team is given $100,000 to
invest. Your investment choices include long and short equity positions and options. The
winning team is the one with the largest portfolio value as of the last day of class, December 6,
2006.
In addition to managing your portfolio, you will also prepare a written report, due on the last day
of class, outlining:
a) Your market outlook for the next three months. This should include a summary of your
prognosis of the general state of the economy. Include pertinent indicators such as CPI,
GDP, interest rates, S&P/TSX Index data, and others as appropriate.
b) Explain how your market outlook will affect your investment style on a go-forward
basis?
c) Perform a fundamental analysis on two of the investments within your portfolio using the
methodology outlined in the textbook.
You will also compile an assessment of each individual’s participation and value added to the
group. Each group member will submit to the Instructor, in confidence, a list of their group
members with a grade from 0 – 10 assigned for each group member, including yourself. A
grade of 0 would indicate that the group member was totally absent from all group activities.
A grade of 10 would indicate that the group member was a full participant in the group’s
activities and added value with their input and presence.
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