Investment management course guidebook.docx

investment management course guide book for pg students

1. Addis Ababa University
Course Development Template
College: Business and Economics
Department : Accounting and Finance
Program MSC in Accounting and Finance
Course Title: Investment management
Year _________________ Semester____________________
Instructor:
Name: _______________________________
Contact information ___________________
Office hours: _________________________
No Section Contents Remarks
1.Module to which the course
belongs:
1.1. Module Title
1.2. Type of Module
4.Competencies be able to identify alternative
investments available in the
market,
Be able to analyse investments
risk and return and make an
informed decision

2. Be able to provide adviser y
service to investors
5.Course Type Face to face class room
discussion and lecture
6.Course Identifiers
4.1. Course Code ACFN 714
8.4.2. Credit Point in ECTS2 CrH (4.5 ECTS)
9.Prerequisite Capital market and Financial
institutions.
10.Course Description To become a successful investor,
investment advisor and portfolio
manager, or security analyst as well as
security broker and dealer, learners
must grasp the necessary knowledge
of financial market as well as a wide
variety of qualitative and quantitative
skills in the area of Investment
Analysis. Thus, this course is
designed to provide students with
necessary knowledge and skill of
making sound Investment decision by
understanding Stock exchange and
trading system, Analyzing risk and
return, Constructing and Analyzing
stock index, Conducting security

3. analysis and finally Applying theory
of portfolio Selection and
performance evaluation.
11.Learning Outcomes Develop a sound investment
background.
Understand the function of
stock exchange markets
Understand stock trading
system, stock listing
requirement and efficient
capital markets
Construct and analyze security
market index.
Conduct economy, industry
and company analysis to
identify potential investment
areas
Analyze the relationship
between risk and return
Apply the theory of portfolio
selection and performance
evaluation.
12.Course Contents Chapter One: Investment Process
1.1 Definition of Investment
1.2 Forms of investment
1.3 Objectives of investment
1.4 Characteristics of investment
1.5 Investment verses speculation

4. 1.6 Types of securities
1.7 Major investors in securities
1.8 Investment Process
Chapter Two: Security Analysis and
Valuation
2.1.Security analysis
2.2. Fundamental analysis
2.2.1.Economic
Analysis
2.2.2.Industry
Analysis
2.2.3.Company
Analysis
2.3Technical analysis
2.4. Fundamental vs Technical analysis
2.5 Valuation of Securities
Chapter Three: Risk and Return of
Single Security
3.1. Introduction
3.2. Concepts and measurement of
expected return of individual security
3.3. Concepts and measurement of stand-

5. alone risk
3.4. Factors that affect risk and return
3.5. Systematic and unsystematic risk
Chapter Four: Portfolio Analysis and
Modern Portfolio theory
4.1. Introduction
4.2. Portfolio analysis
4.3. Measuring expected portfolio return
and risk
4.4. Portfolio risk-return analysis of two
securities
4.5. Portfolio risk-return analysis of more
than two securities
4.5. Diversification and Portfolio Risks
4.6. Portfolio selection models
Markowitz model
Single index model
Multi-factors model
Capital asset pricing model
Chapter Five: Portfolio Revision and
Evaluation
5.1 Meaning and need of Portfolio

6. revision
5.2 Portfolio revision strategy
5.3 Meaning and need of portfolio
evaluation
5.4 Portfolio Performance Evaluation
model
5.4.1 Sharpe Model
5.4.2 Treynor ratio
5.4.3. Jensen measure or ratio
13.Teaching and learning
techniques
The delivery method shall be student
centered. Students must work out
assigned individual topics, make
presentation and participate in class
presentation or group discussions
inside and outside of the class.
Generally, the course will be
delivered thought Lecture Method,
project work and Individual
Assignments.

14.Assessments -Quizzes,
-Assignments
-Reflections on discussion
-Final exam

7. 15.Course Policy -Minimum attendance of 80% of
the session is required
-Working on individual reading
assignment is essential
-Working on group assignments
and submitting of results and
participating on discussion on the
same in class is also a
requirement.
-Any attempt of plagiarism is
unacceptable
16.Learning Resources REFERENCES
1.Bodie Z., Kane A., & Marcus
A., (2005). Investments. 6
th
Edition, McGraw-Hill/Irwin,
New York, U.S.A.
2.Brentani C. (2004). Portfolio
Management in Practice.
Elsevier’s Science and
Technology Rights
Department in Oxford, UK.
3.Chandra P. (2005). Investment
analysis and Portfolio
Management. TATA
McGraw-Hill, New Delhi,
India.
4.Fabozzi F. J. & Drake P. P.,
(2009). Capital Markets,
Financial Management, and
Investment Management. 10
th

8. Edition, John Wiley & Sons,
Inc., Hoboken, New Jersey,
U.S.A.
5.Fabozzi F. J. Fundamentals of
Investing. John Wiley & Sons,
Inc., New Jersey, U.S.A.
6.Fabozzi F. J. The Hand Book
of Financial Instruments. John
Wiley & Sons, Inc., New
Jersey, U.S.A.
7.Khan, M. Y. & Jain, G. K.
(2008). Financial
Management: Text and
Problems. 5th Edition,
McGraw-Hill Publishing
Company Limited, New Delhi,
India.
8.Pandey, I. M. (1999).
Financial Management. 9
th
Edition, Vikas Publishing
House Pvt. Ltd., New Delhi,
India.
9.Pandian P. (2001). Security
analysis and Portfolio
Management. Vikas
Publishing House Pvt. Ltd.,
New Delhi, India.
10.Reilly & Brown (2007).

9. Investment Analysis and
Portfolio Management. 7th
Edition. John Wiley & Sons,
Inc., New Jersey, U.S.A.
11.Ross, S. A., Westerfield, R.
W. & Jaffe, J. F. (2003)
Fundamentals of Corporate
Finance. 7th Edition,
McGraw-Hill – Irwin, Boston.
12.Sharpe W. F., Alexander G. J.,
& Bailey J. V. Investments. 5
th
Edition, Prentice Hall, New
Jersey, U.S.A.
13.Winfield R. G., & Curry S. J.
Success in Investment. 2
nd
Edition, John Murray
Publishers Ltd.
17.Assessment rubrics (optional)
1
Rubrics for the assessment of
assignments
Developing rubrics for assignments/projects is very
important because they help to establish clarity and
transparency regarding assessment criteria and
enhance fairness and quality.
1
Including rubrics is highly encouraged, but it might not be mandatory for every single assignment.