Comprehensive investigation of modern portfolio theory. Unifying theme: optimization of the trade-off between risk and return. Examination of asset pricing models, the efficient market hypothesis, behavioral finance, and security analysis within this framework. Portfolio management topics may include performance evaluation, globalization, and effect of taxes and inflation on investment strategy.
Course Credits: 3
Prerequisites: FINA 3320.
Good quantitative skills are a must for this course. If you mastered the concepts and tools in themath and business statistics courses required in the BBA program, then you are ready for this course.
Access to the Internet. I post all material and announcements in our course website in Canvas. It is vital (for your sake) that you regularly check our course website for new Announcements and updates (if any) to the Course Calendar.
Access to Excel. We will use Excel extensively in this course.
- As a UTPB student, you can access and use Office 365 (including Microsoft Excel) for free. You have two options: use the cloud version, or download it to your hard drive and run locally.
- To login to Office 365 in the cloud, go to login.microsoftonline.com. Use your UTPB email address and password (which are the same that you use to login to Canvas).
- If you wish to download the software, click on the “Install software” link in the upper right on your UTPB Office 365 home page. For more information about Office 365, please see UTPB’s web page, “Information on Computer Accounts & E-mail.” URL: http://www.utpb.edu/services/ird/information-on-computer-accounts-e-mail/office-365
- If you need to improve your proficiency in either Excel or Word, Microsoft offers free training courses in Excel and Word. URL: https://support.office.com/
Student Learning Outcomes
By the end of this course, if you have been diligently reading the assigned readings and have been fullyengaged in the assignments, you should be able to do the following.
- Explain the most important implications ofthe history of security markets—in particular, in the United States over the last two centuries. (Module 2).
- Recommend the best quantitative tools for measuring information about securities and the security markets—in particular, stocks and the stock markets.
- Describe the tradeoff between risk and return for relevant time horizons and investor attitudes about risk and apply basic quantitativetools for asset allocation. (Module 5)
- Describethe key elements of the modern investment environment that affect security returnsand explain the importance of the Efficient Market Theory. (Modules 6 and 7)
- Recommend the best investment tactics to avoid common investment errors due to systematic elements of the psychology of investors(“behavioral finance”). (Module 8)