KING SAUD UNIVERSITY
AL KHARJ,RIYADH, KSA
Course plan
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION (BSBA)
FOURTH YEAR / SEVENTH SEMESTER
Prepared by
Kamalakara rao .Kammili
Assistant professor
Department of Finance
COLLEGE OF BUSINESS ADMINISTRATION
KING SAUD UNIVERSITY
AL KHARJ, RIYADH
Phone:(office):+966-1-5455650
Fax:+966-1-5451940
Department of finance
King Saud University
Post box : 165
College of Business Administration
Al Kharj-11942
e. mail: irishint@hotmail.com
Mobile: 0547564734
Course Plan/
Scheme of Work
Programme
BSBA in Finance
Course Code
BUS –FIN 423
Course Title:
Portfolio Management
Year
Fourth
Semester
Seven
Learning outcomes

Understanding the portfolio theory

Application of Asset pricing

Ability to manage portfolio of assets

Awareness about international investment portfolio and
diversification.
References:
1: Portfolio Management by S.Kevin 2: Investment Analysis and Port Folio
Mnagement by Prasanna Chandra 3: Essentials of Investment by Zvi Bodie.Alex Kane
. Alan j.Marcus.
Session Concept / Topic to Teach
1
2
Session Objectives
Resources
What is portfolio Management? The Concept
Introduction
To understand the
meaning of portfolio
management.
Ref.1Chapter-1
Phases of Portfolio Management-Security
To understand the
processes of portfolio
Ref.1Chapter-1
Page-1
Remarks
Session Concept / Topic to Teach
Session Objectives
Resources
management
Page 2
3
Security analysis, portfolio analysis, portfolio
selection, portfolio revision, portfolio
evaluation.
Understanding five stages
of portfolio management
Chapter1Page
3,4,5
4
Unsystematic Risk, Business Risk Financial Risk
To understand what is
BETA and learning of
calculations to measure
risk
Ref.1 Chapter-3
page.26,27
To understand the
construction of efficient
portfolio single and
multiple
Ref.1Chapter-11
To understand capital
market line that shows
risk return relation ship
Ref.1Chapter-12
To Understand Security
market line that shows
relationship between
expected return and Beta
of security port folio
Ref.1Chapter-12
Understanding and
finding solution for
numerical problem.
Ref.1Chpter-12
Measurement of Risk –BETA, Calculation of
Covariance-Problems. Calculation of Standard
Deviation-Problems.
5
6
7
8
Portfolio Construction-single and Multiple
The Capital Market Line-CML
The Security Market Line-SML
Problem on security market line
Page 155,156
Page 177
Page 178,179
Page 185.
9
Portfolio evaluation
To understand port folio
evaluation
Ref.1Chapter 5
10
Asset pricing Models-Introduction
To understand the risk –
return relationship
through capital asset
pricing model.
Ref.2 Chapter-8
To understand the
deficiencies in the
relationship between risk
and return.
Ref.2 Chapter-8
11
What is
Arbitrage pricing theory and multifactor Models
Page 246
Page.262
Remarks
Session Concept / Topic to Teach
Session Objectives
Resources
12
Equilibrium Risk-Return Relationship
To understand the
equilibrium
Study material
14
Multifactor models, macro economic based risk
To understand various
models
Factor models. Micro economic based risk
factor models.
15
CAPM Introduction-Basic Assumptions
Study material.
Understanding CAPM and
Basic assumptions
Ref:2 Chapter-8
Ref:1 Chapter-12
Page.173
16
17
Efficient Frontier with riskless lending and
borrowing
Understanding the
feasibility set of portfolios
of risky assets through
efficient frontier.
Ref:1Chapter-12
SML and CML
Understanding risk and
return relationship
through SML CML
Ref:1Chapter-1
To Understand whether
the security is
underpriced or correctly
priced.
Ref:1Chapter-12
Understanding
decomposition of risk
factors.
Ref:1Chapter-3
Understanding elements
of Unsystematic risk.
Ref:1Chapter-3
Pricing of securities with CAPM-Problems
18
19
20
Pricing of securities with CAPM
Decomposition of risk-introduction
Unsystematic Risk
Page 174
PAGE181
Page.181
Page.20
Page.23
21
Business risk
To understand the
business risk in operating
environment.
Study material
22
Reduction of portfolio risk through
diversification
To understand the risk
reduction through
diversification
Study material
23
Expected return calculation
To understand the
practical problem .
Study material
Remarks
Session Concept / Topic to Teach
Session Objectives
Resources
24
Security returns positively correlated
Understanding Positive
Correlation.
Study material
25
Security Returns Uncorrelated
Understanding
uncorrealtion.
Study material
26
Portfolio with more than two securities
Understanding the
correlation with two.
Study material
27
Security returns negatively correlated
Understanding
diversification in negative
correlation.
Study material
28
Systematic Risk-Interest rate risk market risk
To understand systematic
risk interest rate risk
market risk.
Ref:1 Chapter-3
Study material
29
Calculation of the risk and return under single
index model
Understanding the
problem and finding
solution
Study material
30
Efficient frontier with riskless lending and
borrowing
Understanding the
efficient frontier with
introduction of lending
Study material
31
International portfolio diversification
To Understand why
investors should consider
constructing global
portfolios.
Study material
32
Bonds
To understand correlation
Study material
Of bonds market
33
Leads and lags
To understand leads and
lags between markets
Study material
34
Port folio return performance
To Understand risk
reduction benefits of
international investment.
Study material
35
Different market environment
To understand different
market environments
Study material
36
Forward looking optimization
To understand emerging
markets alternative
Study material
Remarks
Session Concept / Topic to Teach
Session Objectives
Resources
investments
37
Volatility, correlations, and currency risk
To understand volatility
correlations and currency
risk in the emerging
markets
Study material
38
Barriers to international investments
To understand various
barriers in international
investments
Study material
39
Investability of emerging markets
To understand the
restrictions when
investing emerging
markets.
Study material
40
equity
To study correlations
Study material
Across selected national
stock markets.
41
Market efficiancy
To understand the
liquidity factor in market
efficiency.
Study material
42
Currency considerations
To Understand currency
considerations.
Study material
Remarks