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Name of Course/Module

: Investment Analysis

Course Code

: MFF 333

Name(s) of academic staff

: Mr Masri Azrul; Nayan

Semester and Year offered

: Semester 6 (3rd year)

Credit Value

Objectives

: 3 Hours

The aims of this course are:

Giving basic knowledge on concept and principle in investment analysis.

Teaching the technique to develop and analyze a portfolio investment.
Teaching the students how to value an investment, to understand risks and to
appreciate investment issues.

Learning outcomes

After successful completion of this course, the gradute student will be able to:

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Have good understanding on the basic concept and principle in investment

Apply portfolio theory to the creation of efficient portfolio
Apply various techniques for valuing stocks and bonds
Manage a portfolio given a specific risk parameters
Synopsis
:
This course will expose students to the investment alternatives available and to the theory
and practice of investments and portfolio management. Students will have an opportunity
to apply the concepts learned in class through a portfolio project.

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Mode of Delivery

: Lecture and assignment

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Assessment Methods and Types :

Mid-Term Exam

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25%

Quizzes

10%

Tutorials

10%

Attandence

Final Exam

50%

- 100%
Content outline ofTotal
the course/module and the SLT per topic
1.OVERVIEW OF INVESTMENT

Real Assets versus financial asset

Financial market and the economy
The investment process
Market are competitive

The players

2. FINANCIAL SECURITIES
The money market

The bond market

Equity securities

Stock and bond market Indexes

Derivative market
3.SECURITIES MARKETS

How firms issues securities

How securities are traded
Buying on margin
Short sales

4. RISK AND RETURN

Rate of return
Risk and risk premium
Asset allocation across risky and risk free-free portfolio
Passive strategies and the capital market line

5. EFFICIENT DIVERSIFICATION

Diversification and portfolio risk

Asset allocation with two risky assets
The optimal risky portfolio wtih a risk-free asset
Efficient diversification with many assets

6. CAPITAL ASSET PRICING MODEL AND ARBITRAGE PRICING THEORY

The capital asset pricing model (CAPM)

The CAPM and the real world
Arbitrage pricing theory

7. EFFICIENT MARKET HYPOTHESIS

Random walks and the efficient market hypothesis

Implication of EMH
Are market efficient?

8. BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS

9. BOND PRICES BOND YIELDS AND BOND PORTFOLIO

Bond characteristics
Bond pricing
Bond yields

Default risk and bond pricing

Active and passive bond portfolio management

10. MACROECONOMIC AND INDUSTRY ANALYSIS

Business cycle
Unemployment
Inflation
11. EQUITY VALUATION
Money
Consumer price index
Banking system
12. INVESTORS AND INVESTMENT PROCESS
International trade
Balance of payments
Exhange rate
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Main reference supporting the course

Bodie Z, Kane A and Marcus, A.J. (2008) Essential of Investment 7th Edition
McGraw Hill, Boston

Hirschey M. And Norsinger J. (2008) 1st edt, Investment Analysis and Behaviour,
McGraaw Hill Irwin

Additional references supporting the course

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Francis, J.C. Latest edition, Management of Investment, McGraw Hill

Radcliffe, R.C. Latest edition, Investment: Concept, Analysis, Strategy. Harper Collins
Reilly, F.K and Brown, K.C. (2000), Investment Analysis and portfolio Management,
6th Edition. Prentice Hall International Edition

Other additional information