UNIVERSITY OF ECONOMICS AND LAW SOCIALIST REPUBLIC OF VIETNAM

FACULTY OF FINANCE AND BANKING Independence – Freedom - Happiness

COURSE SYLLABUS
INVESTMENT
For Finance and Banking major

A. GENERAL INFORMATION

1. Course: Investment
2. Level: third - year students, full-time mode of training
3. Credit hours: 4 credits (60 periods)
4. Time allocation:
- In classroom: 60 periods
- Others: Reading materials, homework, personal and group assignments that take at least
twice more than the in-class working time.
5. Prerequisites:
 Financial Management
 Advanced financial management

6. Course description:
The course contain 6 chapters providing insights into modern investment theory, valuation and
portfolio management of stocks, bonds and options. Students are provided with the knowledge and
tools to measure the investment risk and the models of determining the required return based on risk
measurement of the investment; Practical synthesis of financial management knowledge, financial
market principles for valuation of stocks, bonds and options; knowledge of performance evaluation
of portfolio.

7. Goals and expected learning outcomes (ELOs):

7.1. Goals:

The course goals satisfy the expected learning outcomes of the program as listed below:

Program’s expected learning outcomes

Level 1 Level 2

Extensive B1. Possess sufficient knowledge to systemize,

professional synthesize and apply theories on financial markets,
1
knowledge on financial investment and financial management in a
finance globalized market.

B2. Possess sufficient knowledge to systemize,

Extensive
professional synthesize and apply theories on fiscal policies,
2
knowledge on public policies and state budgeting in Vietnam and
finance
foreign countries
Extensive
3 B3. Possess sufficient knowledge to systemize,
professional
 synthesize and apply theories on monetary policies,
knowledge on
central banking and management of financial
finance
intermediaries in an international environment
Professional
practice skills
in finance, C1. Demonstrate practiceskills;proficiently apply
including
4 technology and tools in working, planning and
analysis,
problem solving addressing issues in fiscal and monetary policies
and decision
making
C3. Demonstrate practiceskills;proficiently apply
Professional technology and tools in working and addressing
practice skills issues in banking management, management of non-
in finance,
including bank financial intermediaries and corporates to
5
analysis, become expert in financial, investment, securities
problem solving
and decision and credit analysis, portfolio management, capital
making management and international banking management.

Personal and G1. Demonstrate business ethics, self-cultivation and

6 community
responsibilities self-development

Alignment of the course goals with program expected learning outcomes:

Level of
Goals Descriptions Prog. ELOs
competence
Provide students with foundation
conceptual framework of investment.
G1 4 B1, B2, B3

Help students to enhance professional

G2 4 C1, C3,
skills such as critical thinking,
G1
analytical ability.

7.2. Expected learning outcomes:

Program’s
CLOs Descriptions
ELO
G1.1 Understand basic theories of portfolio B1, B2
Explain the theory and model for valuating the required
G1.2,
return, including: single factor model, CAPM theory, APT B1, B2, B3
G2
model, multi-factor model.
 G1.3, Practice in investing stocks and and applying models of
B1, C1, C3
G2 valuation
G1.4, Explain interest rate risk in bond investment, indicators of
B1, C3
G2 interest rate risk and bond investment strategy.
G1.5, Understand and explain the characteristics of stock option B1, B2, C3
G2 and option market
G1.6, Explain option investment strategies and basic principles in B1, B2, B3,
G2 pricing options C3

8. Course assessment:
8.1. Examination and assessment of proficiency

Expected learning outcomes Proficiency assessed by

Answer question, individual assignment, case
B1,B2, B3 study, group presentation, mid-term exam and
final exam.
Individual assigment, case study, mid-term
B1, C1, C3
exam and final exam.

8.2. Gradingscheme: On a scale of 1-10

Weight
Individual mini test 10%
Assignment 10%
Mid-term exam 20%
Final exam 60%
Total 100%

Evaluation methods:
Group assignment:
o Working in groups of 3- 4 students.
o Practice in conducting and evaluating an investment portfolio

Rubric for Assessment of Group Assignment:

Criteria Weight Mark

Below 5 5-6 7-8 9-10
Answering 60% Answer less than Answer more Answer all Answer all
question ½ questions than ½ questions, most questions, all
questions, most of answers are answers are
of answers are logical and logical and
logical and reasonable reasonable
reasonable
Software 20% Calculations and Only some Most All calculations
using skill analysis are not calculations and calculations and and analysis are
done in Excel analysis are done analysis are done done in Excel
in Excel in Excel
Documentati 20% Poor Good Good Good
on and documentation, documentation, documentation, documentation,
presentation poor pretty clear clear clear
skills presentation, bad presentation, bad presentation, presentation,
questions and questions and good questions very good
 inarticulate inarticulate and articulate questions and
answers answers answers articulate
answers

o Mid-term exam: Closed personal multiple-choice test. Using laptop and electronic
equipment is not allowed. The exam consists of 40 questions with 5 options for each.
Exam format: 40% critical thinking and theory, 60% problem solving. Exam structure:
20% easy, 60% medium, 20% difficult.
o Questions cover 3 first chapters with a ratio equivalent to number of periods of chapter
to total number of periods.
o 0.25 points for each correct answer.
o Duration: 60 minutes
-

Grading scheme: As specified in the questionnaire with the following criteria:

Criteria Weight
Problem solving and reasoning 90%
Writing style and format 10%

- Final Exam:
o Closed personal written exam. Using laptop and electronic equipment is not allowed.
The mid-term exam is to assess knowledge and professional skills of students after
finishing the first three chapters. The exam questions cover the content in all chapters,
including difficult questions (20%) to evaluate critical thinking, analyzing and
generalizing skills. Duration is 60 minutes

9. Approach to teaching and learning:

“Student-centered approach” will be employed in the course to get students involved actively.
Learning outcomes are expected to be achieved through a variety of learning activities both at
school and at home.
 60% for lecturing, 40% for discussing, asking and answering questions.
 At class, lecturer explains definitions and basic principles; sets out problems, guides and
stimulates students to solve; then summarizes the lesson’s content.
 Students need to listen and take notes and are encouraged to raise questions, solve problems
and discuss in order to understand the topics covered under the lecturer’s guide.
 At class, lecturer spends a considerable period of time (10-20%) to carry out in-class activities
and put forward questions to assess students’ ability to perceive and solve their questions
relating to the lesson.

10. Course requirements:

a. Students are required to attend at least 70% lecturers as regulated. Students who are
absent more than 30% lecturers are not allowed to take final exam.
b. Finish all group and individual assignments.
c. Read course materials as required by lecturer. Students are checked by calling at random
to present their opinion about some points in materials.
d. Take midterm and final exams. Zero is given for absent students except for medical
reasons.
e. Perform other activities as required by lecturer.

11. Course Materials:

- Main Materials
 [1]. Bodie, Kane and Marcus, Investments 8th Edition 2010, NXB
McGraw-Hill.

- Reference materials

[2]. Jegadeesh và Titman, Momemtum, University Of Illinois Working

Paper.
[3] Brinson et al, Determinants of Portfolio Performance, Financial
Analysts Journal.

B. COURSE CONTENT

Chapter 1: Introduction to investment

Expected Learning Outcomes: After studing, students can:
- Differentiate real asset and financial asset
- Explain investment procedure.
- Explain and calculate past and expected rate of return
- Understand principles of risk and risk premium
Detail content:
1.1. Introduction to investment environment
1.2. Introduction to standard procedure of professional investment
1.3. Review the definition and methods of calculating rate of return and risk

Chapter 2: Investment theories

Expected learning outcomes: After studing, students can:
- Calculating expected return and risk of a portfolio containing both risky asset and riskfree
asset.
- Explain how to construct difference portfolios by changing the weight invested in risky
asset and riskfree asset.
- Constructing optimal portfolio which is appropriate with each risk preference of
investors.
- Explain and calculate return and variance of portfolios containing various asset.
- Using single factor model to estimate beta coefficient of stock.
- Explain the role of diversification.
- Explain and apply CAPM model to calculate required rate of return.
- Explain APT theory, stating the same and different points between CAPM and APT.
- Understand Fama- French multifactor model.
Nội dung cụ thể:
2.1. Markowitz theory
2.1.1. Capital allocation in risky asset and riskfree asset
2.1.2. Optimal portfolio
2.2. Valuating required rate of return models
2.2.1. Single factor model
2.2.2. CAPM model
2.2.3. APT theory and Fama-French model

Chapter 3: Stock investment

Expected learning outcomes: After studing, students can:
 - Forecasting the effect of fiscal and monetary policies on macro economic factors (GDP,
interest rate and inflation rate)
- Analyzing the industry.
- Applying stock valuation models.
Detail content:
3.1. Economic and industry analysis
3.2. Financial statement analysis
3.3. Stock valuation

Chapter 4: Bond investment

Expected learning outcomes: After studing, students can:
- Calculate bond price and differentiate types of bond yield.
- Explain the change in bond price based on changes in bond maturity and bond yield to
maturity.
- Calculate bond duration.
- Explain the principle of constructing a bond portfolio which has interest rate risk
immunization.
Detail content:
4.1. Stock price and return
4.2. Bond portfolio management
4.2.1. Duration, Convexity
4.2.2. Passive and active bond investment strategy

Chapter 5: Options
Expected learning outcomes: After studing, students can
- Explain chrateristics of options and option market.
- Calculate the return in different positions.
- Construct option strategies to adjust return and risk
- Explain factors that affect option price.
- Valuating option price by Two-Stage Approach
- Valuating option price by Black-Scholes model.
- Explain the put-call parity.
- Constructing hedge portfolios
Detail content:
5.1. Charateristics of option caontract
5.2. Option investment strategy
5.3. Option pricing

HEAD OF DEPARTMENT DEAN OF FACULTY

PhD. Nguyen Anh Phong PhD . Nguyen Anh Phong