Heinz College
School of Information Systems & Management
_______________________________________________________________
95-840 – INVESTMENT MANAGEMENT
Introduction
This course focuses on investment management knowledge and techniques essential for
making vital financial decisions. It covers the basics of investment planning, financial
markets and investment alternatives, implementation of investment analysis and
management strategies for equities, bonds and derivatives, as well as the evaluation of
investment performance. The course is designed for future corporate leaders, investment
managers, as well as personal investors.
Prerequisites
•
95-715 Financial Accounting
•
95-716 Principles of Finance
•
95-825 Corporate Finance
Course Objectives
The primary objectives of this course are: (a) to explain the framework and techniques of
investment management; (b) to develop and sharpen investment analytic abilities and
investment management strategies; and (c) to apply investment management knowledge
and skills in making vital financial decisions.
Course Structure
This course is sub-divided into two key modules.
Module A – Investment Planning, Analysis and Implementation: Investment goal and
policy, investment alternatives, security markets, Top-Down approach, and equity
portfolio management strategies.
Module B – Investment Analysis, Implementation and Evaluation: Bond analysis, bond
portfolio management strategies, derivative analysis and portfolio management strategies,
and evaluation of portfolio performance.
Course Overview:
95825 Investment Management
Overview
& Planning
Setting
Return & Risk
Required return
2. Planning
Equity Analysis
Implementation
Bond Analysis
Implementation
Derivative
Analysis
Evaluation of
Performance
4.Top-Down
9. Bonds
11. Derivatives
13. Evaluation
Macroeconomic
5. Equity
Market/Industry
Investment cycle
Company
Policy statement
6. Technical
Objectives
Global Choices
3. Markets
Primary & others
Indicators
Indicators
Market
Futures
Measures
Analysis
Option
Factors
10.Strategies
12. Strategies
14. Fund Mgt
Passive/ Active
Futures
Industry
Global
Option
Ethics
Performance
7.Strategies
Revision
Passive/Active
Test 2
Revision
8. Test 1
Course Schedule (subject to change if necessary)
Wk
1
Topic
1. Investment setting
2. Investment planning
Review 1
3. Security Markets
4. Top-Down Analysis
Review 2
5. Company Analysis
6. Technical Analysis
Review 3
7. Equity Management Strategies
8. Review 4 & Revision
Test 1
9. Bond Analysis
10. Bond Management Strategies
Review 5
11. Evaluation of performance
12. Fund Management
Review 6
13. Derivative Analysis
14. Derivative Strategies
Review 7
Test 2
2
3
4
5
6
7
8
Ch
Assignment dues
1
2
3/4
5/12
Investment Plan*
13/14
15
16
Top-Down Analysis*
18
19
25
24
21
22/23
Mini- Project*
*** components of mini-project
Core Textbook:
Title:
Authors:
Publisher:
Investment Analysis & Portfolio Management 9th edition (2009)
Frank K. Reilly and Keith C. Brown
South-Western, Cengage Learning
Lecture notes:
Weekly notes are available during the class and power point file on the Blackboard.
Other reading materials may be distributed during the class sessions.
Calculator:
You are recommended to have a financial calculator that can perform time value of
money calculations. The recommended brand is Sharp EL-735S.
Course Assessment:
There are five major assessment components for this course, which include two practical
assignments, one mini-project, one mid-term test, one final test as well as class
attendance and participation. The details will be provided in class.
Please note that without prior approval from the instructor or medical certificate from the
medical practitioner, there will be a penalty for late submission of assignments and
individual report. For any submission after the due date, a deduction of 5 marks per day
will be imposed.
Table below shows the distribution of marks across the 5 assessment components:
1) Practical Assignments
Investment Plan
Top-Down Analysis
2) Mini Project
3) Test 1
4) Test 2
5) Attendance & Participation
Total score:
Scores
10 marks
10 marks
20 marks
28 marks
28 marks
4 marks
100 marks
Guideline for Grading Scale and Score Range:
Grade
A+
A
AB+
B
BC+
C
CR
Description
Exceptional
Excellent
Very Good
Good
Acceptable
Fair
Poor
Very Poor
Minimal Passing
Fail
Points
4.33
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
0.00
Score Range (in marks)
97 to 100.00
93 to 96.99
90 to 92.99
86 to 89.99
80 to 85.99
76 to 79.99
70 to 75.99
66 to 69.99
60 to 65.99
0 to 59.99
The following descriptive statements are guidelines used to grade your assessment
components:
•
Grade A+ (Exceptional) Extraordinary piece of work for a graduate student.
Work at this level is distinctively outstanding, ultra high level of critical thinking,
innovative ideas, crystal clear yet precise explanations with solid justifications
and references, extremely sophisticated methodologies with professional level of
writing and communication skills. Work is extraordinary; attain the highest
academic and professional quality.
•
Grade A (Excellent) Excellent work of a graduate student. Work at this level is
unusually thorough, very high-level of critical thinking, innovative, superior
explanations or justifications, very sophisticate methodologies, very well written
and superb presentation. Work is of outstanding, professional quality.
•
Grade A- (Very Good) Strong work for a graduate student. Work at this level
shows high-level of critical thinking, some signs of creativity, is thorough and
well-reasoned, good presentation, indicates strong understanding of appropriate
methodological or analytical approaches, and meet the professional standard.
•
Grade B+ (Good) Competent and sound work for a graduate student; well
reasoned and thorough, good presentation, reasonable level of critical thinking,
methodologically sound, but not especially creative or insightful or technically
sophisticated. This is the graduate student grade that indicates the student has
accomplished the objectives of the course, with acceptable professional standard.
•
Grade B (Acceptable) Fair work for a graduate student. Moderately thorough,
some level of critical thinking, well reasoned, demonstrating competency in the
key course objectives but showing some indications that understanding of some
key issues is less than complete. Methodologically or analytical approaches used
are adequate but student has shown one or more weaknesses or limitations.
•
Grade B- (Fair) Basic work for a graduate student. Meets the basic expectations
for a graduate student in the course; low level of critical thinking, understanding
of salient issues is somewhat incomplete, methodological or analytical work
performed in the course is basic, although adequate.
•
Grade C+ (Poor) Inadequate work for a graduate student; barely meets the basic
expectations for a graduate student in the course. Work is inadequately developed
or flawed by some errors and misunderstanding of important issues.
Methodological or analytical work performed is deficient and barely demonstrates
the knowledge or technical competence expected of graduate students.
•
Grade C (Very Poor) Weak work for a graduate student; hardly meet the basic
expectations for a graduate student in the course. Work is very poorly developed
or flawed by numerous errors and lack of understanding of important issues.
Methodological or analytical work performed is very weak and fails to
demonstrate the knowledge or technical competence expected of graduate
students.
•
Grade C- (Minimal Passing) Very weak work for a graduate student; hardly meet
the minimal expectations for a graduate student in the course. Work is carelessly
developed or full of errors and missing the important issues. Methodological or
analytical work performed is mostly wrong and fails to demonstrate the
knowledge or technical competence expected of graduate students.
•
Grade D or R (Fail) Work fails to meet even minimal expectations for course
credit for a graduate student. Performance has been consistently weak in
methodology and understanding, with serious limits in many areas. Weaknesses
or limits are pervasive.
Grade I (Incomplete)
•