COURSE INFORMATION Course Title: PORTFOLIO MANAGEMENT AND INVESTMENT ANALYSIS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 411	B	1	3	0	0	3	7.5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Nertil Mera nmera@epoka.edu.al , Tuesday 16:30 - 18:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Master of Science in Banking and Finance
Classroom and Meeting Time:	E- 214/ Tuesday 18:00 - 20:30
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
Course Description:	Background and issues, financial markets and instruments, how securities are traded, investors and the investment process, risk and return: past and prologue, efficient diversification, capital asset pricing and arbitrage pricing theory, bond prices and yields, equity valuation, options, futures.
Course Objectives:	Portfolio Management aims the development of a broad array of quantitative /qualitative skills. The use of these skills requires learning of how to analyze securities tradable in the financial markets and the objectives and constraints of different types of investors, which serve as input for portfolio optimization. The purpose of this course is to equip the student with the innovative tools currently employed in the asset management industry. The goals of this course are achieved with the help of lectures, assignments and case analyses.

BASIC CONCEPTS OF THE COURSE

1	Investment: the current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for (1) the time the funds are committed, (2) the expected
2	Portfolio: A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).
3	Portfolio Management: the art of selecting the right investment policy for the individuals in terms of minimum risk and maximum return.
4	Return: return is the change in price of an asset, investment, or project over time, which may be represented in terms of price change or percentage change (stocks may have dividend yield as well).
5	Variance or standard deviation of expected returns: A statistical measure of the dispersion of returns around the expected value whereby a larger variance or standard deviation indicates greater dispersion.
6	Risk Averse Investor: Given a choice between two assets with equal rates of return, they will select the asset with the lower level of risk.
7	Market Index: A hypothetical portfolio of investment holdings that represents a segment of the financial market.

COURSE OUTLINE

Week	Topics
1	Introduction to the Course and Syllabus Presentation
2	Chapter 1: The Investment Setting (Outline: What Is an Investment?, Measures of Return and Risk, Determinants of Required Rates of Return, Relationship between Risk and Return) Pages 3-24
3	Chapter 2: The Asset Allocation Decision (Outline: Individual Investor Life Cycle, The Portfolio Management Process, The Need for a Policy Statement, Input to the Policy Statement, Constructing the Policy Statement,The Importance of Asset Allocation) Pages 33-53
4	Chapter 3: Selecting Investments in a Global Market (Outline: The Case for Global Investments, Global Investment Choices, Historical Risk-Returns on Alternative Investments) Pages 63-93
5	Chapter 4: Organization and Functioning of Securities Markets (Outline: What Is a Market?, Primary Capital Markets, Secondary Financial Markets, Classification of U.S. Secondary Equity Markets, Alternative Types of Orders Available) Pages 95-118
6	Chapter 5: Security Market Indexes (Outline: Uses of Security-Market Indexes, Differentiating Factors in Constructing Market Indexes, Stock-Market Indexes, Bond-Market Indexes, Composite Stock-Bond Indexes, Comparison of Indexes over Time) Pages 123-144
7	Review and Quiz
8	Mid Term Exam
9	Chapter 6: Efficient Capital Markets (Outline: Why Should Capital Markets Be Efficient?, Tests and Results of Efficient Market Hypotheses, Behavioral Finance, Implications of Efficient Capital Markets) Pages 149-205
10	Chapter 7: An Introduction to Portfolio Management (Outline: Some Background Assumptions, Markowitz Portfolio Theory) Pages 207-232
11	Chapter 8: An Introduction to Asset Pricing Models (Outline: Capital Market Theory: An Overview, The Capital Asset Pricing Model, Relaxing the Assumptions, Additional Empirical Tests of the CAPM, The Market Portfolio: Theory versus Practice) Pages 241-256
12	Chapter 10: Analysis of Financial Statements (Outline: Major Financial Statements, Analysis of Financial Ratios, Computation of Financial Ratios, Evaluating Internal Liquidity, Evaluating Operating Performance, Risk Analysis, Analysis of Growth Potential, Comparative Analysis of Ratios, Analysis of Non-U.S. Financial Statements, The Quality of Financial Statements, The Value of Financial Statement Analysis, Specific Uses of Financial Ratios) Pages 271-313.
13	Chapter 11: An Introduction to Security Valuation (Outline: An Overview of the Valuation Process, Why a Three-Step Valuation Process?, Theory of Valuation, Valuation of Alternative Investments, Relative Valuation Techniques, Estimating the Inputs: The Required Rate of Return and the Expected Growth Rate of Valuation Variables) Pages 327-359
14	General Review for Final Exam

Prerequisite(s):	Financial Accounting, Math for Business and Finance, Statistics, Corporate Finance, Financial Management
Textbook(s):	Frank.K.Reilly., Keith.C.Brown.,Investment Analysis and Portfolio Management, 10th Edition or latter, Cengage Learning.
Additional Literature:	Bodie, Kane and Marcus, Investments, 10th Global Edition, McGraw Hill, 2014 Elton, Gruber, Brown and Goetzmann, Modern Portfolio Theory and Investment Analysis, 9th edition, John Wiley and Sons, 2014 Malkiel, A Random Walk Down Wall Street, 10th edition, W.W. Norton & Company, 2012 DeFusco, Pinto, Runkle, Mcleavey, Quantitative Methods for Investment Analysis, 2nd edition, Association for Investment Management and Research, 2001
Laboratory Work:	NA
Computer Usage:	Yes
Others:	No

COURSE LEARNING OUTCOMES

1	Comprehend the use of modern portfolio theory in the asset allocation and security selection decisions
2	Understand the theory of single and multifactor risk models, their limits, and know how to use them in forecasting portfolio’s risk and return
3	Efficiently analyze security markets and use it to make investment decisions
4	Analytically comprehend the term structure theory and used it in the bond pricing
5	Be able to run portfolio optimisation and simple/multiple linear regression models in excel and drive use such models in the asset allocation/security selection process

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Master of Science in Banking and Finance Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	5
2	They develop a broader understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	5
3	They are able to apply advanced valuation models to estimate the price of different financial assets as well as evaluate multinational business firms.	4
4	They are able to apply different investment techniques and form portfolios that would generate higher returns by decreasing the unsystematic risk level.	5
5	They have advanced knowledge of the regulatory framework and functioning of the banking system, international banking, central banking and the conduct of monetary policy.	5
6	They are able to conduct advanced financial analysis and use the results in the decision-making process of business firms.	5
7	They are able to understand and use advanced economic theories and tools to solve economic problems in banking and financial services industry.	5
8	They have the ability to utilize accounting, financial and economic data as well as other information to solve complex and unstructured business problems by using advanced econometric and statistical models.	4
9	They develop their ability to think critically, do advanced and independent research, analyze, interpret results, draw conclusions, and communicate effectively, both individually and as part of a team.	5
10	They are provided with opportunities to acquire the necessary skills and competencies to move on to further study within the discipline.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Quiz	1	10
Final Exam	1	50
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	25	25
Assignments	1	16.5	16.5
Final examination	1	30	30
Other	1	20	20
Total Work Load:			187.5
Total Work Load/25(h):			7.5
ECTS Credit of the Course:			7.5

CONCLUDING REMARKS BY THE COURSE LECTURER