GEST0251-1 : Investment Analysis and Portofolio Management


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GEST0251-1

Investment Analysis and Portofolio Management

[ english version ]

Durée :

30h Th

Crédits/ECTS :

2e licence en informatique		3
2e année du grade d'ingénieur de gestion		3,5
2e licence en sciences économiques		4
2e année de la maîtrise en sciences économiques		4

Titulaire(s) :

Pierre‑Armand Michel

Aperçu général :

In the course of Investment Analysis and Portfolio Management an overview is given of the different techniques that can help the investor to compose his investment portfolio, to analyse potential investment assets and to evaluate (ex-post) his investment decisions. During the course, the perspective of the institutional investor is taken (e.g. insurance company, investment company, mutual fund). The investment process is divided into three steps:

1. "Asset allocation" step: how are long term investment goals formulated and how do they lead to a subdivision of the portfolio into the large asset categories (e.g. equity, bonds, cash).

2. "Security selection" step: given the asset allocation decision, how do we fill in these categories with individual assets: which bonds do we buy, from which companies do we buy stocks,... ? To do this, we need techniques and concepts enabling us to value bonds and stocks.

3. Evaluation step: after having constructed an investment portfolio, it is also important to evaluate whether these decisions a) conform to the investment goals; and b) yield the desired results. Again, evaluating techniques are required to answer these questions.

Objectif du cours :

After studying the course of Investment Analysis and Portfolio Management, the student should:

have acquired knowledge about portfolio selection and analysis;
master techniques to price equity and bonds;
have some practical experience regarding portfolio selection, valuation and evaluation;
have a critical view on marketing campaigns by financial institutions.

Pré-requis :

This course requires few prerequisites. However, some acquaintance with financial markets and instruments is assumed. I also gather that you are familiar with discounting cash flows and basic statistical techniques (descriptive statistics, hypothesis testing and linear regression). In chapters 1 through 4 and appendix A of the textbook we are using, all these topics are refreshed. Some knowledge on corporate finance may help, but is not assumed.

Organisation :

This course is divided between lectures and exercise classes (or group assignments).

Notes de cours :

For this course the manual 'Investments', Bodie, Z., A. Kane en A.J. Marcus (Sixth Edition, ISBN: 0-07-286178-9) will be used. However, a previous edition will be fine as well, since changes have been minor. Slides used during classes will also be made available to the students.

Evaluation :

(Group assignments spread over the second semester, together with) a written exam at the end of the semester.

Contacts :

Suppléante : Madame Anouk Claes

ULg : Administration de l'Enseignement et des Etudiants - Affaires Académiques
Responsable de l'information : Monique Marcourt, direction A.E.E.
Date de validité des données : 27/02/2006
Réalisation SEGI