Syllabus

DAFFODIL INSTUTUTE OF IT (DIIT)

Forth Year / Eighth Semesters

Security Analysis and Portfolio Management

Course Code: FIN – 4243

Course Teacher: Md. Jahidul Islam Rony

Senior Lecturer & Coordinator

Tourism and Hospitality Management

Cell: 01719678798

E-mail: rony_nu@diit.info

1. Introduction to Investment: Introduction to Investment, Securities, Securities Market.

2. Investment Setting: Definition of Investment, Measures of returns and Risks, Determinants of Required Rate of Returns, Relationship between Risk and Return.

3. Introduction to Portfolio Management: Background Assumptions, Markowitz Portfolio theory, Combining Individual Assets into portfolio.

4. Introduction to Asset Pricing Model: Capital Market Theory Capital Asset Pricing Model, Expected Return and risk, Arbitrage Pricing Theory.

5. Introduction to Security Valuation: Overview of Valuation Process, Why a Three Step Valuation Process? Theory of Valuation, Valuation of Alternative Investments, Relative Valuation Techniques, Required rate of return and Expected Growth Rate of Valuation, Variables.

6. Bond Fundamentals: Basic Features of a Bond, Global Bond Market Structure, Alternative Bond Issues, Obtaining Information on Bond Prices.

7. Analysis and Valuation of Bonds: Fundamentals of Bond Valuation, Computing Bond Yields, Calculating future Bond Prices, Bond Valuation using Spot Rates, What Determines Interest Rate? What determines Price Volatility for Bonds?

8. Bond Portfolio Management strategies: Alternative Bond Portfolio Strategies, Implications of Capital Market Theory and the EMH on Bond Portfolio Management.

9. Stock Market Analysis: Applying The DDM Valuation Model to the Market, Estimating the Growth Rate of dividends, Valuation Using the relative Valuation Approach, Estimating Expected EPS, Estimating the Earning Multiplier for a Stock Series, Calculating Expected Rate of Return on Common Stocks.

10.Industry Analysis: why do Industry Analysis? Business Cycle and Industry Sectors, Structural Economic Changes and Alternative Industries, Estimating Industry Rates of return, Industry Analysis using Relative Valuation Approach, Other Relative Valuation Rations, Global Industry Analysis.

11.Company Analysis and stock Selection: Company Analysis versus Selection of Stock, Economic, Industry and structural Links to Company Analysis, Company Analysis, Estimating Intrinsic Value, Estimating Company Earning per Share.

12.Equity Portfolio Management Strategies: Passive versus Active Management, Overview of Passive Equity Portfolio Management Strategies, Overview of Active Portfolio Management Strategies, Value versus Growth Investment.

13.Evaluation of Portfolio Performance: What is required of a Portfolio Manager? Composite Portfolio Performance Measures, Evaluation of Bond Portfolio Performance, Reporting Investment Performance.

Recommended Books

1. Reiily and Brown, Investment Analysis and Portfolio Management

1. Elton and Gruber, Modern Portfolio Theory.