COLLEGE OF BUSINESS

UNIVERSITI UTARA MALAYSIA

No.

Information on Course

1. Course Name :

INVESTMENT ANALYSIS

2. Course Code: BWFN3013

3. Name(s) of Academic Staff:
1. Puspakaran Kesayan
2. Mohd Radzi Mohd Rejab
4. Rationale for the inclusion of the course in the programme:
This is a compulsory course for Bachelor of Finance students.
5. Semester/Year Offered:

4/2

6. Credit Value: 3
7. Pre-requisite (if any):
BWFF2023 FINANCIAL MANAGEMENT II
8. Objective(s) of Course :
Students are expected to
1.
2.
3.
4.
5.

explain the important concepts and the practical applications of various

investment theories and methodologies;
recognize the use of financial statements in financial and investment analysis;
discuss the elements and characteristics of fixed income and equity securities
that are linked to the purpose of financial as well as investment planning;
evaluate and value fixed income and equity securities; and
evaluate and understand the importance of derivatives.

9. Course Learning Outcomes:

Upon completion of the course, students are able to
1. describe types of financial markets and the recent trend in the markets
2. able to differentiate and trade in instruments of money markets, capital markets,
options and futures contracts.
3. evaluate the risk and return of and investment, and formulation of portfolio strategy.
4. using dividend discount and p/e ratio to assess the growth prospect of the firm.
1

5.

formulate options strategies to modify portfolio risk and return.

10. Transferable Skills:

Critical thinking and problem solving, teamwork, information management and
continuous skill.
11. Teaching-learning and assessment strategy:
Lectures and class discussions will be the main mode of teaching. In addition to
the mid-term and the final examinations, students are required to hand-in one
group project paper and sit for quizzes as assigned.
12. Synopsis:
The course starts with an introduction to students with basic concepts and
principles of investment. Students learn investment theories and the practical
applications of these theories. Introductory lectures provide an overview of
investment environment, an understanding of economic fundamentals and an
analysis of financial statement. Essential theoretical concepts and valuation
methods of fixed income and equity securities will be covered extensively.
Options, futures, swaps, and other derivative securities are covered.
13. Mode of Delivery:
Lectures, discussions, presentations.
14. Assessment Methods and Types:
Coursework 60% (Mid Term Test, Project Paper and Quiz)
Examination40% (Final Examination)
15. Content outline of the course/module and the SLT per topic

Topic

1.0

2.0

Introduction
What is Investment
Overview of Malaysian Capital
Market
Investable Securities and Trading
of Securities
Unit Trust
Indices
Investment Process
2

3.0

Objective
Types of Accounts
Forming an Investment Portfolio
Overview of Securities Types
Classifying securities
Interest Bearing Asset
- Money Market
- Fixed Income Securities
Equities
Derivatives
Option contracts
Mutual Fund

4.0

Risk and Return

5.0

Common Stock Valuation

Analysis
Security Analysis
Dividend Model
Price Ratio Analysis

Stock Prices Behavior and

Market Efficiency
Foundation of Market Efficiency
Implication of Market Efficiency
Stock Market Anomalies

Behavioral Finance
Introduction to Behavioral Finance
Prospect Theory
Technical Analysis

Bond Prices and Yields

Bonds basics
Bond prices and Yield to Maturity
Yield to Call

6.0

7.0

8.0

9.0

Portfolio Management
Expected return and variances
Performance evaluation
Diversification
How foreign MNCs use US equity
markets
3

10.0

Analysis of Derivatives
Futures Contract
Option Valuation

Assessment
Course work

60%

Final examination

40%
Total Notional Hours
Credit Hours

3.0

Main Reference:
Smart, S., Gitman, L., & Joehnk, M. (2014). Fundamentals of Investing (12th ed.).
Pearson.
Additional References:
Bodie, Z., Kane, A., & Marcus, A.J. (2013). Essentials of Investment (9th ed.). McGrawHill/Irwin.
Jordan, B. D., Miller T., & Dolvin, S. (2012)Fundamental of Investments.(6thed.).
McGraw-Hill Irwin.
Jones, C.P. (2012). Investments: Analysis and Management (12th ed.). John Wiley and
Sons, Inc.
Reilly, F.K., & Brown, K.C. (2012). Investment Analysis and Portfolio Management
(10th ed.). Cengage Learning/South-Western.
Grading Points
Numerical Marks
90 - 100
80 -89
75 - 79
70 - 74
65 - 69
60 - 64
55 - 59
50 - 54
45 - 49
40 - 44
35 - 39
00 - 34
0.00

Alphabet Grades
4.00
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
1.33
1.00
0.00
0.00
4

A+
A
AB+
B
BC+
C
CD+
D
F
X