Kazakhstan Institute of Management, Economics and Strategic Research
Bang College of Business (BCB)
Fall Semester 2013
Course Syllabus for: FN4240: Securities Analysis and Portfolio Management
___________________________________________________________________________
1. Basic Information
Course Code and Title: FIN4240 Securities Analysis and Portfolio Management
Course Meeting Time and Place:
13:00-14:15 TTh Hall # 10, Valikhanov Build
Course Credit: Three (3) credits
Instructor Information:
Instructor:
Gulmariya Zhapakova
Office: Room
#420 Dostyk (Administrative) Building
Phone:
2 70 44-40 Ext. 2246
E-mail: gzhapak@kimep.kz
2. Instructor Availability:
Office Hours: 2:30-5:00 pm Friday
Additional hours will be available by appointments
3. Course Description/Overview
This course is an advanced level finance course introducing the student to the world of
professional investment management. This course provides through analysis of security
valuation techniques and systematic portfolio management.
Part 1. We will begin with contrasting of Behavioral Finance with Traditional Finance,
investment decisions according to traditional finance and behavioral finance and adoption
of individual`s investment decision by integration of traditional and behavioral finance.
We examine biases of individual investors in investment decision and portfolio
construction and adoption of some in investment portfolio.
Part 2. We further continue with analysis of Capital Market Expectations (expectations
about assets classes) in portfolio management that are essential inputs in Asset allocation
as well as will be helpful for individual security valuation and selection. We learn and
apply investment process using top down and bottom up security valuation approaches.
Part 3. Portfolio Execution and Attribution and evaluation. Investment Policy and the
Framework of the CFA Institute. We also cover Global Investment Performance
Standards.
4. Learning objectives:
a. To introduce you to the world of Security Valuation and Portfolio Management.
b. To enrich your understanding of the fundamental principles of security valuation,
portfolio construction and performance evaluation of fund managers.
c. To equip you with the knowledge and skills necessary to manage equity portfolios.
d.
To help you improve analytical and computational skills necessary to face the
challenges in the world of Security Valuation and Portfolio Management.
5.
Relationship of Course and Program
Pre-requisites: FIN3220 Investments
6.
Teaching Methodology
In a typical session, the lecturer will teach on the topics/materials first, followed by
questions and/or class discussions. Students are expected to learn the class contents by
reading assigned text first and solving, if possible, assigned problems and case studies
before each lecture.
Students’ participation is essential for this course and as such they are strongly
encouraged to participate in class discussions and solve problems during the classes.
7.
Assessment Scheme:
Students’ performance will be evaluated on the basis of the following criteria:
Continuous assessment
Activities
8.
Percent to the Total
Student Hours Required
Assessment
to Complete the Tasks
Continuous Assessment (60%)
Mid-term Exam I
Mid-term Exam I
Mid-term Exam II
Project
Final Exam
15.00%
15.00%
15.00%
15.00%
40.00%
15 hours
15 hours
15 hours
15 hours
15 hours
Total
100.00%
90 hours
Grading Scale
Letter grades for the course will follow the same standards as specified in the 2008-2009
Catalog. See the following table for grading scale:
Grade quality
A+
A
AB+
B
BC+
C
CD+
D
D-
Numerical scale or
percentile
90-100
85-89
80-84
77-79
73-76
70-72
67-69
63-66
60-62
57-59
53-56
50-52
F
9.
Below 50
Rules for Class Participation and Instructor’s Expectations of Students:
a.
You are expected to strive for excellence in acquiring knowledge.
b.
You are expected to assist in maintaining discipline in the class room in to ensure
uninterrupted teaching and learning process. So switch off your mobile phones, car
alarms and keep silence in the class room. If any student disturbs the teaching
process (by means of talking etc.) he will be asked to leave the classroom.
c.
You are expected to regularly attend all lectures, tutorials, and exams. There will be
attendance record but it will not be part of the grade. You are expected to arrive in
the classroom before the class begins and if you show up late for lectures, tutorials,
or exams you may not be allowed to enter the classroom.
You must bring you own calculator when you come in class. I will not allow you to
use your cell phone as a calculator.
.
d.
11.
e.
You are expected to complete your assignments individually or in group on your
own. You are not expected to share, lend or borrow another student’s (group’s)
work in any manner; either on paper, by computer disk or by word of mouth.
Cheating, Plagiarism, or any other form of scholastic dishonesty or misconduct will
result in the strictest disciplinary action, according to the KIMEP regulations
(please refer to your catalog for details). Also, please read materials in the folder
“plagiarism” in L Drive.
f.
If any student in this course has a disability that prevents him demonstrating his
abilities to the fullest should contact me personally. We will make our best effort to
devise the appropriate accommodation in order to facilitate your successful
completion of this course.
g.
If you discontinue attending classes, and if do not officially drop the course, or
withdraw from the University, you will receive a grade of “F”. Please refer to your
catalog or visit the registrar office for details.
h.
You will not granted a grade of incomplete except for the most extreme
circumstances and only after stringent verification and approval by the department.
A grade of incomplete will be granted only as a result of circumstances beyond
your control. A grade of “I” is not given in lieu of an “F”.
Period-by-Period Schedule
Weekly Activity Schedule: The following teaching schedule and key dates are presented:
Instructor may change the schedule at any time.
Week and
dates
Class Chapters &
activities, key dates, etc assignments
1
Introduction
2
Traditional and behavioral Finance
R7
Estimated
student
time*
perspectives on portfolio
construction
Behavioral Biases of individuals
Portfolio construction from
traditional finance perspective
Behavioral finance and investment
process
Managing individual investor
portfolio
Exam 1
Framework for CME and economic
analysis
3
4
5
6
7
R8, R 9.
Questions to R 7.
Equity Market valuation
Asset allocation
Exam 2
8
9
Break
Monitoring and rebalancing the
portfolio
Evaluating Portfolio Performance
Exam 3
Global investment performance
standards
Global investment performance
standards
10
11
12
13
14
Review material and project
15
Project
16
Project
17
Exam
*For each lecture hour, students are expected to spend two additional out-of-class study hours.
11.
Instructional Resources
1. Investment and Portfolio Management by Bodie, Kane, Marcus. Global edition.
2. The CFA Institute material (copies are in our Library`s reading hall) by Michael M.
Pompian, Colin McLean, FSIP, Alistair Byrne, James W. Bronson, Matthew Scanlan,
Jan Squires, Stehen M. Horan, Thomas R. Robinson, Roger g. Ibbotson, Moshe A.
Milevsky, Peng Chen, Kevin X. Zhu.
Supplementary Materials: to be assigned if needed
A business calculator is required to perform the calculations.
Rules for Exams
1.
2.
Place your bags and extra stuff on the designated area – my desk.
Switch off mobile phones, and car alarms. I will deduct 10 points if your mobile beeps
during any exam or a quiz.
3.
4.
5.
6.
7.
8.
Use your own calculator, not mobile phone. If you use mobile phone during the exam, I
will cancel your paper
The exam is closed book, closed-notes.
Don’t talk, look at others’ paper, if I catch you, I might cancel your paper.
Raise your hand if you have a question.
You must not leave classroom until exam ends.
No make up exams. Your missed exam grades will be transferred to the final exam
weight.
Final project:
You will be assigned to apply the knowledge taken from the course to the project. You will make
the full portfolio management of any individual you wish to choose, starting with analysis of
individual investor, formulating IPS, constructing portfolio and evaluating the portfolio
afterwards. The details of the project requirements will be given after the break. You will use
simulated results but should take a real person as an investor.
You will work in a group of maximum 3 students. You should write a paper (min 10 pages and
20 slides).