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JOHN CABOT UNIVERSITY
COURSE CODE: "FIN 331"
COURSE NAME: "Portfolio Management"
SEMESTER & YEAR:
Spring 2016
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SYLLABUS
INSTRUCTOR:
Teresa Triglia
EMAIL: [email protected]
HOURS:
W 6:00PM 8:45PM
TOTAL NO. OF CONTACT HOURS:
45
CREDITS:
3
PREREQUISITES:
Prerequisite: FIN 301
OFFICE HOURS:
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COURSE DESCRIPTION:
This course provides a comprehensive overview of modern portfolio theory and management. It covers the measurements of risk and the implications of efficient diversification on portfolio risk including the Markowitz model, an introduction to simple index models, CAPM and APT, and the role of asset allocation in the risk-return profile of the portfolio. The management of fixed income portfolios is introduced, including the term structure of interest rates. The use of futures, options, and other derivative security markets is examined in the context of portfolio management and hedging strategies. The course also includes an introduction to portfolio performance evaluation as well as developing investment policy statements using the CFA® Institute's guidelines.
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SUMMARY OF COURSE CONTENT:
Portfolio management is both an art and a science. It is a dynamic decision making process, one that is continuous and systematic but also requires a great deal of judgment. The objective of the course is to blend theory and practice to achieve a consistent portfolio management process. This dynamic process is designed to be applied in a comprehensive and logical fashion to variety of objectives and constraints in an increasingly more volatile and global capital markets.
The course focuses on the investment decision making from the perspective of the portfolio manager. It will discuss various theories and widely used techniques for combining different investments to create portfolios meeting specific goals and objectives within given risk parameters. The course will include in-depth exploration of various concepts, including selecting suitable investment policies and strategies, balancing asset classes, integrated risk management, efficient diversification, market efficiency, measuring and attributing performance for an investment portfolio. Some considerations are given to analyzing international assets and techniques of using them both opportunistically (tactically) and strategically. Specific risks of global investing such as country, political, currency, convertibility, liquidity and settlement are treated.
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LEARNING OUTCOMES:
The course is designed for upper-level students to provide them with advanced skills in equity and fixed-income portfolio construction and management, asset allocation, as well as cover advanced topic such as professional asset management, and alternative investments.
The course is taught as a combination of lecture and hands-on-learning. Students take an active role in the class via presentations, discussions, and group projects that simulate the real world decision making of professional portfolio managers and individual investors.
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| Analysis of Investments and Management of Portfolios (Europe, Middle East and Africa Edition) | Reilly & Brown | CENGAGE Learning | 9781473704794 | | | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Class Participation and Preparation | The course will be interactive and this part of the grade will be based on the quality of the student's preparation/analysis of assigned readings/problems and contribution to class discussion. | 15 |
| Bloomberg certificate | You will need to go through Bloomberg training and become certified in at least one category (Equities, Fixed Income, Foreign Exchange or Commodities). The terminal is located in the library and you will need to schedule your time for the terminal with Livia Piotto. I will require proof of your certification that is sent to you by Bloomberg when you have completed the training. | 10 |
| Mid-Term Exam | The exam is closed-book. | 25 |
| Project | Students will form groups. The project consists in the construction, marketing and management of a portfolio. Details about the project will be discussed in the lecture with guest speaker, A. Gupta, and a date for presentation of the project will be agreed. | 25 |
| Final Exam | The exam is closed-book. | 25 |
-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the cours
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.
-ATTENDANCE REQUIREMENTS:
ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY
You cannot make-up a major exam (midterm or final) without the permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence was caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity. Absences due to other meaningful conflicts, such as job interviews, family celebrations, travel difficulties, student misunderstandings or personal convenience, will not be excused. Students who will be absent from a major exam must notify the Dean’s Office prior to that exam. Absences from class due to the observance of a religious holiday will normally be excused. Individual students who will have to miss class to observe a religious holiday should notify the instructor by the end of the Add/Drop period to make prior arrangements for making up any work that will be missed. The final exam period runs until ____________
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ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic
dishonesty will receive a failing grade on the work in which the dishonesty occurred.
In addition, acts of academic dishonesty, irrespective of the weight of the assignment,
may result in the student receiving a failing grade in the course. Instances of
academic dishonesty will be reported to the Dean of Academic Affairs. A student
who is reported twice for academic dishonesty is subject to summary dismissal from
the University. In such a case, the Academic Council will then make a recommendation
to the President, who will make the final decision.
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STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap.
Students with approved accommodations must inform their professors at the beginning
of the term. Please see the website for the complete policy.
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SCHEDULE
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| Session | Session Focus | Reading Assignment | Other Assignment | Meeting Place/Exam Dates |
| Week 1 | Course Introduction and Overview | | | |
| Week 2 | The Investment Process | Chapter 1 of required text | Questions 1,2,3,4,5 Problems 1,2,3,5,7 | |
| Week 3 | Global Market Investment Decision/ Securities Markets - Organization and Operation | Chapters 2 and 3 of required text | Ch 2 Q 1,2,4,5 and P 2,3,6
Ch 3 Q 1,2,3,4,5,6 and P 1,3,4
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| Week 4 | Efficient Capital Markets/Portfolio Management | Chapters 4 and 5 of required text | Ch 4 Q 1-5 and P 1,2,3,5
Ch 5 Q 1,3,4,5 and P 2,4
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| Week 5 | The Asset Allocation Decision | Online Chapter of required text - will be provided by Professor | Q 1,2,3,4,5 and P 1,2,3,5 and Case Study from Harvard Business Publishing | |
| Week 6 | Asset Pricing Models/ Multifactor Models. Guest lecturer, A. Gupta - details of project to be discussed | Chapters 6 and 7 of required text | Questions and Problems TBA | |
| Week 7 | Mid Term Exam | | | March 2, 2016 |
| Week 8 | Equity Portfolio Management - Company Analysis and Stock Valuation | Chapter 12 of required text | Questions and Problems TBA | |
| Week 9 | Equity Portfolio Management Strategies | Chapter 13 of required text | Questions and Problems TBA | |
| Week 10 | No in class session will be held. Additional time for Bloomberg certification. | | | |
| Week 11 | Fixed-Income Portfolio Management- The Analysis and Valuation of Bonds | Chapters 14 and 15 of required tex | Questions and Problems TBA | |
| Week 12 | Bond Portfolio Management Strategies | Chapter 16 of required text | Questions and Problems TBA | |
| Week 13 | Project Presentation (April 20) | | | |
| Week 14 | Specification and Evaluation of Asset Management | Chapters 20 and 21 of required text | Questions and Problems TBA | |
| Week 15 | Final Exam | | | |
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