Business Administration (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: | Spring | ||||||||
Course Credits: |
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Language of instruction: | EN | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | Department Elective | ||||||||
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) Explain the essential body of knowledge in the area of business administration, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models | |||||||||
2) Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions | |||||||||
3) Recognize the importance of technological development, especially in information technologies, and utilize them in business administration | |||||||||
4) Evaluate the body of knowledge in the dynamic business world and business functional areas to asses needs, manage and lead change by using critical and innovative thinking | |||||||||
5) Discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures | |||||||||
6) Fulfill their responsibility in teamwork and projects in businesses, and act as a leader | |||||||||
7) Communicate in written and oral English with people from diverse backgrounds, and have the English proficiency to follow and interpret the global dynamics in the areas of business administration | |||||||||
8) Recognize individual and multi-cultural diversity, and can emphatically interact with individuals from diverse cultural backgrounds in social and professional settings | |||||||||
9) Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society | |||||||||
10) Recognize interrelationship among business and other disciplines, and relate knowledge from diverse areas to formulate novel solutions in the area of business administration |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Explain the essential body of knowledge in the area of business administration, including evolution of the discipline, the state-of-the-art concepts, scientific methodology, theories and models | |
2) | Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions | |
3) | Recognize the importance of technological development, especially in information technologies, and utilize them in business administration | |
4) | Evaluate the body of knowledge in the dynamic business world and business functional areas to asses needs, manage and lead change by using critical and innovative thinking | |
5) | Discover and create entrepreneurial opportunities and expertise to successfully establish and develop their own ventures | |
6) | Fulfill their responsibility in teamwork and projects in businesses, and act as a leader | |
7) | Communicate in written and oral English with people from diverse backgrounds, and have the English proficiency to follow and interpret the global dynamics in the areas of business administration | |
8) | Recognize individual and multi-cultural diversity, and can emphatically interact with individuals from diverse cultural backgrounds in social and professional settings | |
9) | Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society | |
10) | Recognize interrelationship among business and other disciplines, and relate knowledge from diverse areas to formulate novel solutions in the area of business administration |
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 |