Jerauld R.
Bucol
Part I. Course Identification
Course Prefix /Number
Course Title
Course Units: 3 units
Course Total Expected
Hours
Course Description
Course General Goals
and Objectives
Course Audience
Course Prerequisites
FinMan6
Investment and Portfolio Management
Lecture: 3units
56 hours
The course presented examines the theoretical basis and practical approach to
managing the investment portfolios of financial assets. As a future financial managers
or financial consultants, business students must know how financial markets price
capital assets. This knowledge is crucial for all market participants. Individuals and
portfolio managers should have the ability to handle efficiently the tools needed to
select assets, manage risk and construct optimal portfolios. This course enhances the
student’s capacity for a career in investments and is recommended to be taken by
students majoring in finance.
A distinctive feature of the course is to focus on practical issues of managing the
investment portfolio, ground on the results of recent academic research in the field of
portfolio management.
The course objective is to acquaint students with the theoretical foundation of
modern portfolio theory, the major group investors and their investment objectives and
constraints, and to learn how to employ practical skills in investment management,
forming capital market expectations and forecasting markets activity to justify major
investment portfolio management strategy for equity and fixed-income instruments.
As a result of the course, students will know the basic theoretical foundation of
portfolio theory, understand the investment process scope and stages, be able to form
market expectations and build strategic asset allocation, select the optimal investment
strategy.
BSBA major in Financial Management
FinMan3,FinMan5
Learning Competencies As a result of taking this course, the student should be able to :
1. Learn to compute historical and expected returns, as well as risk measures and
comprehend the importance of risk-return relationships.
2. Define the objectives in constructing and managing a portfolio and learn to
create an investment policy statement.
3. Learn how the financial markets operate, how she can invest in different
security types matching her client’s portfolio objectives and constraint.
4. Understand the principles of modern portfolio theory and the effect of
diversification on investment portfolios.
5. Measure and evaluate portfolio performance and understand the key features
of futures and options and how they can be used to manage the risk of the
portfolio.

Other General Course 1. Quizzes and Assignments

Requirements These are questions/requirements asked to evaluate the students’ knowledge
and understanding of the topics discussed.

2. Oral Recitation/Participation
Students must participate in the discussion.

3. Trinal Examinations (First Trinal, Midterm and Final)

These are major exams which may compose of the following:

Objective Type – Questions/requirements will determine the students’

knowledge applicable to the profession.

Problem Solving – This course includes quantitative analysis.

Attendance Policy Attendance of students is monitored every class period by the faculty. Students are
required to attend 80% of the total number of class per semester.
Student Absences – Missed class due to late enrolment/registration are considered
absences. Allowable absences should only be 20% of the entire class and laboratory
hours per semester. Three times tardy shall be equivalent to one day absence.
Part II. Course Schedule Matrix
Week Learning Outcomes Topics Teaching Values Assessm Referenc
Learning Integrati ent/Evalu es
Activities on ation
(TLA)

1. Define the objective 1: The Investment Bodie Z.,

of investment. Environment Kane A., &
2. Explain the 1.1 Definition of Investment Marcus A.,

Participation
investment 1.2 Investment Alternatives (2005).

Discussion

Excellence

Seatwork
Pre-test
environment and 1.3 Investment Objectives Investmen
the research levels 1.4 The Investment Process ts. 6th
1

1.5 Clients of the Financial Edition,

System McGraw-
1.6 The Environment Hill/Irwin,
Responds to Clientele New York,
Demands Ongoing Trends U.S.A.
1. Obtain and interpret 2 : Organization and Reilly &
investment Functioning of Securities Brown
information from Markets (2007).
various sources 2.1 Functions of Financial Investmen
2. Describe the Markets t Analysis
mechanics in 2.2 Where Securities are and
2&3

Participation
Discussion

Excellence
financial markets traded Portfolio

Integrity

Pre-test
Quiz
The Primary Market Managem
The Secondary Markets ent. 7th
The Over-the-Counter Edition.
Market John
The Third and Fourth Wiley &
Markets Sons, Inc.,
 2.3 Trading Systems/Trading New
on the Exchanges Jersey,
The Participants U.S.A.

Participation
Discussion

Excellence
Types of Orders

Integrity

Pre-test
2.4 Trading on the Over-the-
2&3

Quiz
Counter Market
2.5 Trading Costs
2.6 Buying on Margins
2.7 Short Sales
2.8 Market Indices
1. Understand the 3: Security Analysis
various alternatives 3.1 The Efficient Market
available for Hypothesis 1.Reilly &
investment Random Walks and the Brown
2. Learn to measure Efficient (2007).
risk and return Market Hypothesis Investmen
3. Gain knowledge of Implications of the t Analysis
the various Efficient

Participation
and

Discussion

Excellence
strategies followed Market Hypothesis

Integrity

Pre-test
Portfolio
4&5

Quiz
by investment 3.2 Fundamental Analysis Managem
practitioners Macroeconomic Analysis ent. 7th
Industry Analysis Edition.
Company Analysis John
Equity valuation and Wiley &
Equity Portfolio Sons, Inc.,
Management Bond New
valuation and Bond Jersey,
Portfolio Management U.S.A.
3.3 Technical Analysis

FIRST TRINAL EXAMINATION

6
 1. Understand the 4: Risk, Return and Portfolio Ross, S.
difference among Theory A.,
the most important 4.1 Historical Return and Risk Westerfiel
types of returns for a Single Asset d, R. W. &
2. Find the relationship 4.2 Expected Return and Risk Jaffe, J. F.

Participation
Discussion

Excellence
between risk and for a Single Asset (2003)

Seatwork
7,8,9,10

Integrity

Pre-rest
Quiz
return 4.3 Portfolio Expected Return Fundamen
3. How to estimate and Risk tals of
expected returns 4.4 Diversification and Corporate
and risk for Portfolio Risk Finance.
individual securities 7th
Edition,
McGraw-
Hill – Irwin
1. Understand the 5: Capital Allocation Bodie Z.,
benefit of 5.1. Capital Allocation Across Kane A., &
diversification of Risky And Risk-Free Marcus A.,
holding a portfolio of Portfolios (2005).

Participation

Awareness
Discussion

Excellence
assets and the 5.2. Portfolios Of Two Risky Investmen

Seatwork
Integrity

Pre-rest
ts. 6th

Quiz
importance played Assets
11

by the market Edition,

portfolio McGraw-
Hill/Irwin,
New York,
U.S.A.
12

MIDTERM EXAMINATION
 2. Explain the 5.3. Risk Tolerance And Asset
fundamental drivers Allocation Bodie Z.,
of diversification as 5.4. Optimal Combination Of Kane A., &
an investment Risky And Risk-Free Marcus A.,
13,14
strategy for Portfolios (2005).

Participation

Awareness
Discussion

Excellence
investors 5.5. The Capital Market Line Investmen

Seatwork
Integrity

Pre-rest
ts. 6th

Quiz
(CML) and the Security
Market Line Edition,
5.6. Equilibrium in Capital McGraw-
Markets Hill/Irwin,
The Capital Asset Pricing New York,
Model U.S.A.
The Arbitrage Pricing
Theory
1. Explain the concept 6: Portfolio Management and Reilly &
of portfolio Evaluation of Performance Brown
management 6.1. Overview of Portfolio (2007).
2. Differentiate active Management Investmen
from passive 6.2. Active versus passive t Analysis
portfolio portfolio management and
management and 6.3. Strategic versus tactical Portfolio

Participation

Awareness
Discussion

Excellence

Seatwork
Integrity

Pre-rest
strategic from asset allocation Managem
15,16

Quiz
tactical asset 6.4. Monitoring and revision of ent. 7th
allocation. the portfolio Edition.
3. Evaluate the factors 6.5. Portfolio performance John
affecting portfolio measures Wiley &
measurement 6.5.1 Factors to Consider Sons, Inc.,
in Measuring Portfolio New
Performance Jersey,
6.5.2 Risk-Adjusted Measures U.S.A.
of Performance
17

FINAL EXAMINATION