Civil Engineering (English) | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code: | FNCE304 | ||||||||
Course Name: | Investment and Portfolio Management | ||||||||
Course Semester: | Fall | ||||||||
Course Credits: |
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Language of instruction: | EN | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | Compulsory | ||||||||
Course Level: |
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Mode of Delivery: | Face to face | ||||||||
Course Coordinator : | Prof. Dr. GÖKÇE TUNÇ | ||||||||
Course Lecturer(s): |
Prof. Dr. GÖKÇE TUNÇ |
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Course Assistants: |
Course Objectives: | The objective of this course is to introduce the specifics of investment environment; overview of financial instruments; security trading; initial public offerings; market orders; buying on margin; short sales; investment companies; open-end funds; closed-end funds; risk and return; risk premium; risk aversion; capital allocation line; portfolios of risky and risk-free assets; the capital market line; optimal risky portfolios; diversification; portfolios of two risky assets; minimum variance portfolio; the Markowitz portfolio selection; capital asset pricing model; arbitrage pricing theory; factor models; market efficiency; simulation application. |
Course Content: | Investment environment; overview of financial instruments; security trading; initial public offerings; market orders; buying on margin; short sales; investment companies; open-end funds; closed-end funds; risk and return; risk premium; risk aversion; capital allocation line; portfolios of risky and risk-free assets; the capital market line; optimal risky portfolios; diversification; portfolios of two risky assets; minimum variance portfolio; the Markowitz portfolio selection; capital asset pricing model; arbitrage pricing theory; factor models; market efficiency; simulation application. |
The students who have succeeded in this course;
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Week | Subject | Related Preparation |
1) | • Describe the course. • Differentiate real and financial assets. • Identify the relationship between financial markets and economy. • Explain the specifics of the Money Market • Explain the specifics of the Bond Market • Explain the specifics of the Equity Securities • Discuss the Stock and Bond Market Indexes • Explain the specifics of the Derivative Markets • Syllabus. • Recognize the informational role of Financial Markets • Discuss the consumption timing, allocation of risk, separation of ownership and management and corporate governance and corporate ethics with regard to investment environment. • Justify the the Investment Process. • Argue the the Risk–Return Trade-Off and Efficient Markets. • Discuss the Money Market and the Bond Market instruments. • Define options and futures contracts. | NONE |
2) | • Explain how firms issue securities. • Argue how securities are traded. • Identify market structure in different countries. • Recognize the types of Investment Companies. • Explain the specifics of Mutual Funds. • Discuss the Investment Banking and Initial Public Offerings (IPOs). • Compare Direct Search Markets, Brokered Markets, Dealer Markets and Auction Markets. • Analyze type of orders (Market Orders / Price-Contingent Orders). • Discuss trading mechanisms. • Compare the important securities markets around the world. • Differentiate Buying on Margin and Short Sales. | Review the Syllabus. Read, in Bodie-Kane-Marcus, chapters 1-2-3-4 on pages 1-116. |
3) | • Explain the determinants of the level of Interest Rates. • Compare the rates of return for different holding periods. • Identify risk and risk premiums. • Argue the time series analysis of past rates of return. • Justify the the normal distribution. • Evaluate the deviations from normality and risk measures. • Compare the historical returns on risky portfolios: equities and long-term government bonds. • Distinguish real and nominal rates of interest. • Analyze the effect of taxes on the real rate of interest. • Recognize annual percentage rates and identify continuous compounding. • Compute and evaluate Holding-Period Returns, Expected Return and Standard Deviation, Excess Returns and Risk Premiums. • Identify and analyze the the Reward-to-Volatility (Sharpe) Ratio. • Evaluate Value at Risk, Expected Shortfall, Lower Partial Standard Deviation and the Sortino Ratio meaures with regard to deviations of returns from normality. • Discuss the global view of the historical record on equities and long-term government bonds. | Read, in Bodie-Kane-Marcus, chapter 5 on pages 117-159. Review the Lecture Notes. |
Course Notes / Textbooks: | INVESTMENTS Zvi Bodie-Alex Kane-Alan J. Marcus, 9th ed., 2011 ISBN 978-0-07-353070-0 |
References: | INVESTMENTS Zvi Bodie-Alex Kane-Alan J. Marcus, 9th ed., 2011 ISBN 978-0-07-353070-0 |
Learning Outcomes | 1 |
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Program Outcomes | ||||||||||
1) Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems. | ||||||||||
2) Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | ||||||||||
3) Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.) | ||||||||||
4) Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively. | ||||||||||
5) Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions. | ||||||||||
6) Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | ||||||||||
7) Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions. | ||||||||||
8) Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself. | ||||||||||
9) Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices. | ||||||||||
10) Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development. | ||||||||||
11) Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions. |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems. | |
2) | Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose. | |
3) | Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.) | |
4) | Ability to select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice; ability to employ information technologies effectively. | |
5) | Ability to design and conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions. | |
6) | Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually. | |
7) | Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language; ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions. | |
8) | Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself. | |
9) | Knowledge on behavior according ethical principles, professional and ethical responsibility and standards used in engineering practices. | |
10) | Knowledge about business life practices such as project management, risk management, and change management; awareness in entrepreneurship, innovation; knowledge about sustainable development. | |
11) | Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions. |
Individual study and homework | |
Group study and homework | |
Project preparation |
Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing) | |
Homework | |
Individual Project | |
Group project |
Semester Requirements | Number of Activities | Level of Contribution |
Midterms | 1 | % 40 |
Final | 1 | % 60 |
total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 40 | |
PERCENTAGE OF FINAL WORK | % 60 | |
total | % 100 |
Activities | Number of Activities | Workload |
Course Hours | 16 | 48 |
Study Hours Out of Class | 15 | 90 |
Homework Assignments | 4 | 8 |
Quizzes | 3 | 3 |
Midterms | 1 | 10 |
Final | 1 | 22 |
Total Workload | 181 |