Master of Business Administration (English) non-thesis
Master	TR-NQF-HE: Level 7	QF-EHEA: Second Cycle	EQF-LLL: Level 7

General course introduction information

Course Code:

EMBA551

Course Name:

Portfolio Management

Course Semester:

Spring
Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	8

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Department Elective

Course Level:

Master

TR-NQF-HE:7. Master`s Degree

QF-EHEA:Second Cycle

EQF-LLL:7. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Prof. Dr. GÖKÇE TUNÇ

Course Lecturer(s):

Prof. Dr. GÖKÇE TUNÇ

Course Assistants:

Course Objective and Content

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.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) • Discuss the financial environment in terms of portfolio management.
2) • Determine expected values and variances of financial assets and portfolios.
3) • Discuss whether the financial markets are efficient.
4) • Build a diversified portfolio and assess portfolio performance.
2 - Skills
Cognitive - Practical
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

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.

Sources

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

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4
Program Outcomes
1) To gain basic knowledge about the basic functions in the field of business administration and to apply them in real life
2) To use scientific research methods and technology in decision processes of business
3) Evaluating the effects of political, legal, geographical, economic and technological factors on the competitive structure of the business area with team work and finding the necessary solutions
4) To be aware of current issues in the field of business and to gain sensitivity to problems
5) Transmission of written documents such as reports, printouts, internal correspondence orally in an effective manner
6) Defining and analyzing the problem by forming a team within the framework of professional expertise and conceptual knowledge and using leadership qualities
7) To be able to relate to other areas of business administration, to be aware of global and social ethical norms

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	To gain basic knowledge about the basic functions in the field of business administration and to apply them in real life
2)	To use scientific research methods and technology in decision processes of business
3)	Evaluating the effects of political, legal, geographical, economic and technological factors on the competitive structure of the business area with team work and finding the necessary solutions
4)	To be aware of current issues in the field of business and to gain sensitivity to problems
5)	Transmission of written documents such as reports, printouts, internal correspondence orally in an effective manner
6)	Defining and analyzing the problem by forming a team within the framework of professional expertise and conceptual knowledge and using leadership qualities
7)	To be able to relate to other areas of business administration, to be aware of global and social ethical norms

Learning Activity and Teaching Methods

Individual study and homework
Group study and homework
Project preparation

Assessment & Grading Methods and Criteria

Written Exam (Open-ended questions, multiple choice, true-false, matching, fill in the blanks, sequencing)
Homework
Individual Project
Group project

Assessment & Grading

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

Workload and ECTS Credit Grading

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