SYLLABUS

 

Course Name

Code

Semester

Theory
(hour/week)

Application
(hour/week)

Laboratory
(hour/week)

Local Credits

ECTS

Investment Analysis and Portfolio Management

ITF 510

Fall/Spring

3

0

0

3

7.5

 

 

Prerequisites

:

None

 

Course Language

:

English

Course Type

:

Elective

Course Level

:

Second Cycle

Mode of Delivery

:

Face to face

Course Coordinator

:

Assoc. Prof. Dr. Coώkun Kόηόkφzmen

Course Lecturer(s)

:

Assoc.Prof. Dr. Coώkun Kόηόkφzmen

Course Assistants

:

Course Objectives

:

The Primary objective is to introduce graduate students the basic concepts of investing, the tools and principles to be able to better understand trading in financial markets. It is also aimed that students will be equipped with the knowledge for portfolio selection, portfolio management and investment evaluation through theoretical methodologies. Through solving the problems it is aimed to develop and increase the skills of the student in the field of investment and portfolio construction.

Course Learning Outcomes

:

The students who succeeded in this course;

  • will be able to describe asset classes and financial instruments
  • will be able to explain the mechanism of securities markets and the process of security issuance.
  • will be able calculate risk and return of a single asset or a portfolio with the help of risk and return concepts.
  • will be able to demonstrate the efficient diversification in order to compose an optimal portfolio.
  • will be able to present Capital Asset Pricing Model and Arbitrage Pricing Theory.
  • will be able to interpret the Efficient Market Hypothesis.
  • will be able to demonstrate the basic concepts of investments

Course Content

:

Topics covered are: investment environment, market players, securities markets, portfolio risk and return, efficient diversification, CAPM and APT, Efficient market hypothesis and Behavioral Finance and Technical Analysis.

Recommended Optional Program Components

:

None

 

Week

Subjects

Related Preparation

1

The Investment Environment
a) Real Assets / Financial Assets

b) Financial Markets and the Economy

c) Market Players

d) Recent Trends

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

2

Asset Classes and Financial Instruments
a) The Money Market

b) The Bond Market

c) Equity Securities

d) Stock and Bond Market Indexes

e) Derivative Markets

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

3

How Securities Are Traded
a) How Firms Issue Securities: IPO

b) US Securities Markets

c) Types of Orders

d) Short Sales

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

4

Mutual Funds, Hedge Funds and Other Investment Companies
a) Investment Companies 

b) Mutual Funds 

c) Hedge Funds

d) Cost of Investing in Mutual Funds 

e) Exchange Traded Funds 

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

5

Risk and Return
a) The Concept of Risk and Rates of Return in Financial Assets

b) Risk and Return analysis

c) Risk Premium

d) Normal Distribution

e) LongTerm Investments

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

6

Value at Risk Calculation

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

7

Problem Solutions

8

Mid Term

9

Risk Aversion and Capital Allocation to Risky Assets 
a) Risk and Risk Aversion

b) RiskFree Asset

c) Passive Strategies: The Capital Market Line

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

10

Index Models 
a) The Single Index Model

b) Portfolio Construction and the Single Index Model 

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

11

Capital Asset Pricing Model

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

12

Arbitrage Pricing Theory

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

13

Bond Prices and Yields

a) Bond Characteristic

b) Bond Pricing

c) Bond Yields

d) Bond Prices over Time

e) Default Risk and Bond Pricing

Zvi Bodie, Alex Kane, Alan J. Marcus, “Investments”, McGrawHill – Eighth Edition

14

Problem Solutions

 

Course Notes / Textbooks

:

Book Chapters and Powerpoint slides

References

:

Financial Times 
Wall Street Journal 

The Economist

Journal of Portfolio Management

Financial Analysts Journal

 

Semester Requirements

Number

Percentage of Grade

Attendance/Participation

20

Laboratory

Application

Field Work

Special Course Internship (Work Placement)

Quizzes/Studio Critics

4

10

Homework Assignments

Presentation/Jury

Project

2

20

Seminar/Workshop

Midterms

1

20

Final

1

30

Total

100

 

PERCENTAGE OF SEMESTER WORK

60

PERCENTAGE OF FINAL WORK

40

TOTAL

100

 

Course Category

(Only one category will be chosen)

Core Courses

Major Area Courses

X

Supportive Courses

Media and Managment Skills Courses

Transferable Skill Courses

 

Program Qualifications / Outcomes

* Level of Contribution

1

2

3

4

5

1

Reinforcing the quantitative and analytical thinking ability gained throughout the undergraduate level and to gain critical point of view

X

2

To gain competency and be adequately equipped about the financial markets and instruments and to be able to efficiently communicate and explain them to the industry specialists.

X

3

To be able to use the basic knowledge gathered from other fields including managament, mathematics towards financial decision making and applications by utilizing an interdisciplinary approach and be able to act consistent with ethical values.

X

4

To gain conciousness about the universality of social rights, social justice, quality and cultural values together with environment protection, occupational health and security.

X

5

Collecting data, analyze them and creating solutions to the complicated problems emerging from the complex structure of the financial decision making process

X

6

To have a basic understanding about the legal infrastructure regarding the capital market institutions and instruments,

X

7

Developing efficient communications skills in accordance with the social dimension of the program, even though the program is quantitative oriented.

X

8

Having a good command of foreign language in order to communicate efficiently,

X

9

To acquire necessary skills and background to comprehend the fundamental software used in financial decision making and forecasting process.

X

10

To carry out and take responsibility in the projects belong to the field and identify appropriate aims and targets.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

Activities

Number

Duration (Hours)

Total Workload

Course Hours (Including Exam Week: 16 x Total Hours)

16

3

48

Laboratory

Application

Special Course Internship (Work Placement)

Field Work

Study Hours Out of Class

16

3

48

Presentations / Seminar

2

15

30

Project

2

20

40

Homework Assignments

Quizzes

4

4

16

Midterms

1

20

20

Final

1

23

23

 

 

Total Workload

225