Investment Analysis and Portfolio Management

This course intends to bring together investment analysis and portfolio theory and their implementation to portfolio management.  Investments can be thought to be composed of two branches: security analysis and portfolio management. The course will begin by looking at the meaning of investment, investment selection and the concept of risk/return; then we will examine modern portfolio theory, including Markowitz portfolio theory, market efficiency and behavioral finance. Asset pricing models such capital asset pricing models (CAPM) and Arbitrage Price Theory (APT) are also included. The nature of investor objectives, their risk tolerance, asset allocation decisions and performance evaluation issues will be explored. The second half of this course delves into security analysis, which is concerned with the analysis and valuation of securities. In this course students will be involved with the analysis and valuation of stock and bonds. Issues concerning macroeconomics, industry and company analysis, alternate (qualitative and quantitative) methods of valuation, the timing of buy/sell decisions, etc. will be explored. This course will conclude by examining the emerging field of derivatives to include: Forward/Futures Contracts, option contracts, payoff patterns and pricing, option strategies, and applications in risk management.