Investment MGNE 4226E

Course description:

This course discusses the basic concepts of investment management: the different types of financial securities (common stocks, preferred stocks and bonds) and the risk and return. In addition, it helps in valuing assets and managing investment portfolios. Moreover provides the basics of calculating the risk and return for both individual security and investment portfolio. Furthermore provides a fundamental explanation of diversification and asset allocation.

Course Aims:

Upon completion of the course, students will be able to: 
  • Review the basic principles of portfolio theory (Risk and Return). 
  • Understand how bonds and stocks are evaluated. 
  • Discuss the impact of diversification and asset allocation. 
  • Understand the fundamentals of risk, return and risk preferences and explain the CAPM and its relationship to the SML.
  • Reflect the realities of today’s changing investment environment, ranging from new investment vehicles to techniques and strategies

Course outcomes:

By the successful completion of this unit, students will be able to:
  • Demonstrate an understanding of the investment process, in particular; the workings of short sales
  • Be able to reflect the basic understanding of the different types of securities (Equity, Futures and Option). 
  • Show the fundamental knowledge and understanding of various financial concepts such as; risk and return, diversification, asset allocation, etc. 
  • Understand the valuation of bonds and stocks. 
  • Student is expected to be able to: a) analyze, at basic level, the difference between various types of interest-bearing assets, b) identify the risk and return characteristics of both individual security and a portfolio, c) identify the importance of portfolio diversification and asset allocation.
  • Student expected to build a solid theoretical and analytical foundation from different concepts and principles gained by this course, upon which the understanding of the advanced financial courses will be built.