Stamford University Bangladesh
Department of Business Administration
MBA Program, Summer-2011
FIN 607: Security Analysis and Portfolio Management
Course Outline
COURSE
OBJECTIVE
REQUIRED
TEXTBOOK
LEARNING
MODE
COURSE
ASSESSMENT
& EXAM POLICY
The objective of this course is to acquaint the students with the tools and
techniques for analyzing publicly traded securities and managing
portfolios, and their applications in the real world scenario. By taking this
course a student is expected to develop analytical skills necessary for
investment in securities. Using a blend of academic- and practitioneroriented readings, case studies, projects, and group analytical sessions,
students will be introduced to both the conventional wisdom and state-ofthe-art methods used in performing many of the Fund's functional tasks,
including security research, security trading, economic forecasting, and
organizational coordination.
Investment Analysis and Portfolio Management, 7ed. by F. Reilly and K.
Brown (Thomson-Southwestern, 2011)
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Class lectures and interactive group discussions
Reports & projects/ Presentation
Reading assignment
Case analysis & Group Activity
Library /Internet research
Problem solving
 Counseling
The rules and regulation of this University will be the framework for
examination and grading. Two class tests will be taken and two
assignments will be given during the Semester/trimester: one before and
the other after the mid-term exam. Your class participation is regularly
required to enrich yourselves. There will be a major assignment based on
case study analysis which will be duly informed and should be presented
in group in the class along with a written report on the case
Attendance
Class Test
Midterm
Assignment and Report
Final
Total
COURSE
FACILITATOR
10%
20%
30%
10%
30%
100%
Shahadat Hosan
Faculty ( Part-time), MBA Program
Stamford University Bangladesh
Cell: 01711147240, E-mail:shad@asia.com
www.shadbd.weebly.com
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Course Contents
S.l
1
2
3
4
5
6
7
Discussion Topics
Investment and Portfolio Management, Objectives of
Investment, Investment Constraints, Portfolio Management
Process.
Organization and Functioning of Securities Markets,
Security Market Indicator Series, Efficient Capital
Markets.
Measures of Risk and Return, Determinant of Required
Rate of Return, Relationship between Risk and return,
Risk measures for portfolio, estimation issues, and
efficient frontier.
Capital market theory: CAPM, Empirical Tests,
Relationship between Systematic Risk and Return.
Multifactor Models of Risk and Return: APT, Multifactor
Models and Risk Premium.
Analysis of Financial Statement: Major Financial
Statements, Analysis of Financial Ratios, Comparative
Analysis of Financial Ratios.
Introduction to Security Valuation: Three Step Valuation
Process; Theory of Valuation; Valuation of Alternative
Investments; Relative valuation Techniques, Estimating
the Inputs.
Relevant Chapters
Reilly & Brown- Chap 1, 2
Reilly & Brown- Chap 4,
5, and 6
Reilly & Brown- Chap1, 7
Reilly & Brown- Chap 8
Reilly & Brown- Chap 9
Reilly & Brown- Chap 10
Reilly & Brown- Chap 11
8
Macroeconomic and Market analysis: Economic Activity Reilly & Brown- Chap 12
and Security Markets, Cyclical Indicator Approach to
Forecasting the Economy; monetary variables, the
Economy and Stock Prices.
9
Stock Market Analysis: Applying the DDM model, Reilly & Brown- Chap 13
valuation using relative valuation Approach, Estimating
Expected ESP, Estimating Earning-Multiplier, calculating
Expected Rate of Return.
10
Industry Analysis: Business Cycle and Industry Sectors, Reilly & Brown- Chap 14
Structural Economic Changes, evaluating Industry Life
cycle, estimating Industry rate of Return, Industry Analysis
using Relative Valuation Approach.
Company Analysis and stock Valuation: Company Reilly & Brown- Chap 15
Analysis versus Valuation of Stock; Economic, Industry
and Structural Links to Company Analysis; Company
Analysis, Estimating Intrinsic value, Company Earning
Multipliers, Additional Measures of Relative Value,
Analysis of growth Companies, Measures of Values
Added.
11
12
Derivative Securities: Call Option and put Option, Reilly & Brown- Chap 21
Forward and Future Contracts.
& 22
-The End-
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