BE103/512

THE UNIVERSITY OF HONG KONG

FACULTY OF BUSINESS AND ECONOMICS

MFIN7002

Investment Analysis and Portfolio Management

GENERAL INFORMATION

Instructor: Yang You

Email: yangyou@hku.hk
Office: KKL 1012
Phone: 3917-5169
Consultation times: Friday 2 pm-3:30 pm

Tutor: TBD
Pre-requisites: N/A
Co-requisites: N/A
Mutually exclusive: N/A

Course Website: TBD

Other important details: N/A

COURSE DESCRIPTION
This course introduces students to the fundamental principles of investment analysis and portfolio
management. The concepts and skills developed from this course enable students to conduct a
sophisticated assessment of current issues and debates covered by both the popular media as well as
more-specialized finance journals. The main topics include: investment tools, portfolio theory and
practice, equilibrium in capital markets, portfolio performance evaluation, and institutional details.
The students will learn how to set investment goals, and how to construct, manage, and evaluate an
investment portfolio from hand-on experience by participating in a trading tournament. This course is
essential to those planning to become an investment professional or a sophisticated individual
investor.
COURSE OBJECTIVES
1. Investment environment and financial products

2. Portfolio Construction

3. Asset Pricing Theory

4. Investment Performance Evaluation

5. Practice in trading and investment pitch

Programme Learning Outcomes
PLO1. Acquisition of techniques and advanced knowledge in interdisciplinary fields between finance and
other appropriate disciplines including but not limited to engineering, law and mathematics

PLO2. Application and integration of knowledge and skills in finance and relevant interdisciplinary fields to
identify and tackle practical problems, and design innovative products and systems with international
standards and global vision
PLO3. Inculcating leadership, professional ethics and competence in finance and relevant interdisciplinary
fields

PLO4. Mastering communication skills

COURSE LEARNING OUTCOMES

Aligned Programme
Course Learning Outcomes
Learning Outcomes

CLO1: Understand global financial products

PLO1/PLO2
CLO2: Stock pitch, portfolio construction, and develop investment strategies PLO2/PLO4

CLO3: Integrate your prior knowledge into investment (Programming, industry exposure, PLO3

and etc.)
COURSE TEACHING AND LEARNING ACTIVITIES
Expected Study Load
Course Teaching and Learning Activities
contact hour (% of study)

T&L1. Lectures 24 80%

T&L2. Case study and Presentation 6 20%

Total 30 100%

Aligned Course
Assessment Methods Brief Description (Optional) Weight
Learning Outcomes

A1. Class participation 5% CLO1

A2. Exercise 25 %
CLO1

A3. Group projects 35 %

CLO2/CLO3
A4. Final exam 35 %
CLO1

Total 100%

STANDARDS FOR ASSESSMENT

Course Grade Descriptors
A: Excellence
A+, A

B B: Decent Understanding of the course material

C C: Need more time and effort to absorb course material

F F: Violate program policy, cheat, or fail to maintain academic integrity.

Assessment Rubrics for Each Assessment (Please provide us the details in a separate file if the space here is not
enough)

• Class participation 5%
• Exercise 25%
• Group projects 35%
 • Final exam 35%

Class Participation: Class participation refers to class attendance, class discussions, and other forms
of contribution. For instance, student can contribute to the class tremendously by sharing useful
reading materials and video clips, presenting personal investing experience, etc. You get 5% if you
contribute to the class.

Group Projects: Students should form a group of 3-4 students (it is recommended that the group
members have good combined skills in math, computer, writing and communication abilities) in order
to work on two group projects: case analysis and portfolio management tournament. Details of the
projects will be released in the first class. The same grade will be assigned to members in the same
group.

Exercises: There are a few sets of exercise questions. They are selected end of chapter questions with
answers of the textbook of BKMJ. Please practice to enhance your understanding of the lectures and
to prepare for the final exam. (Get full points if you complete the exercise)

Final Exam: One final exam will be held on TBA. It will be a 120-minute long, closed- book, closed-
notes in-class exam. The final exam will be comprehensive of all course topics and materials. The
exam questions will be similar to class discussions and exercise questions (Multiple Choice and
Problem Solving questions). A Formula Sheet will be provided in the exam. No make-up exam will be
given except for medical or other emergency reasons supported by proper documentation.

COURSE CONTENT AND TENTATIVE TEACHING SCHEDULE

Class 1

• Introduction of the course and the group projects

• Lecture 1 Overview of Investment environment (BKMJ Ch. 1, Ch11)

Class 2

• Lecture 2 Asset classes and financial instruments (BKMJ Ch. 2)

Class 3

• Lecture 3 Securities trading (BKMJ Ch. 3)

• Lecture 4 Investment companies and fund industry (BKMJ Ch. 4)

Class 4

• Lecture 5 Portfolio theory and practice (BKMJ Ch. 5-7, 25)

Class 5

• Lecture 5 continued

Class 6
 • Lecture 6 Asset pricing theories (BKMJ Ch. 8-10)

Class 7

• Lecture 6 continued
• Lecture 7 Portfolio performance evaluation (BKMJ Ch. 24)

Class 8

• Lecture 7 continued
• Final exam review

Class 9 & 10

• Case presentations & Trading project presentations & Security Analysis

REQUIRED/RECOMMENDED READINGS & ONLINE MATERIALS (e.g. journals, textbooks, website addresses etc.)
Required Textbook:

INVESTMENTS, Asia Global Edition, Zvi Bodie, Alex Kane, Alan J. Marcus and Ravi Jain, McGraw-
Hill. 11th International Edition (BKMJ thereafter)

Supplemental Readings:

Articles listed in the lecture notes;

Finance books to be introduced along the course;
The Wall Street Journal (http://www.wsj.com); Financial Times (http://www.ft.com);
The Economist (http://www.economist.com/); Bloomberg (www.bloomberg.com);
MarketWatch (www.marketwatch.com).

MEANS/PROCESSES FOR STUDENT FEEDBACK ON COURSE

o conducting mid-term survey in additional to SETL around the end of the semester

o Online response via Moodle site

✓ Others: ___SETL____________ (please specify)

COURSE POLICY (e.g. plagiarism, academic honesty, attendance, etc.)
You will result in an overall F grade for the course if:

Class Attendance: You are required to follow the attendance policy of MFin program.

Plagiarism and Academic Honesty: You violate academic integrity, including copy & paste others’
work /the textbook answers without individual input /free-ride in group projects.

ADDITIONAL COURSE INFORMATION (e.g. e-learning platforms & materials, penalty for late assignments, etc.)