Class History: Portfolio Management (Summer 2016)

[May 20] Class 1

  • What is Finance
  • What is return
  • Different types of returns
    • Holding period return of an investor
    • Average holding period return of an investor
    • Average return of a stock
      • Without dividend 
      • With dividend 

[May 27] Class 2

  • What is risk
  • Various proxies of risks
  • Standard deviation
    • Calculation of standard deviation
  • Risk and return combined: Interpretation
  • Comparison of two stocks
    • Same risk, different returns
    • Same return, different risks
    • Different returns, different risks
  • Coefficient of variation 

[June 3] Class 3

  • Relationship between two stocks
    • Examples
    • Graphical illustration
  • Covariance
    • Problems of covariance 

[June 10] Class 4

  • Correlation
    • Interpretation
    • Graphical illustration
    • Example
  • THE END OF CHAPTER - 1 

[June 10] Class 5 (Extra), Class 6 (Extra)

Two classes back-to-back, started from 3:30 PM.

Chapter 2: Introduction to portfolio management
  • What is portfolio
  • What is portfolio management
  • Assumptions of portfolio theories
  • Benefits of constructing portfolio 
  • Return of portfolio
  • Risk of portfolio
    • Two-assets
    • Three-assets
    • The matrix method
  • Determinants of risk in a portfolio
  • The end of Chapter - 2.

[June 24] Mid-Term exam

  • Time: 2:30 – 4:00 PM
  • Room: B2-301 
  • Click here to view the result.

[July 15] Class 7

Chapter 3: Indexes
  • What is security market index
  • Usages of index
  • Important factors in constructing index
  • Unweighted index

[July 22] Class 8

Chapter 3: Index (continuing…)
  • Price-weighted index (with detailed example and calculation procedure)
  • Value-weighted index (with detailed example and calculation procedure)

[July 29] Class 9

  • Chapter 3: Index (continuing…)
    • Indexes of Dhaka Stock Exchange
      • DSEX
      • DSE-30
    • Comparison of various indexes over time
  • Chapter 4: The Market
    • What is securities market?
    • Market risk and return: How to calculate

[August 5] Class 10

  • Chapter 4: The market (continuing…)
    • Calculation of market risk and return using index
    • The concept of beta
      • Beta of a portfolio
    • The market risk premium
    • The risk-free rate of return
      • Several proxies of risk-free rate of return
    • Capital asset pricing model (CAPM)
      • Required Rate of Return and Equilibrium rate of return
      • Security market line (SML)
      • How to determine whether a stock is undervalued or overvalued using the SML line?

[August 12] Class 11

  • Chapter 4: The market (continuing…)
    • Mathematical example:
      • Calculation of Beta and Required Rate of Return of a stock using the CAPM principle
      • Calculation of Beta of a portfolio
  • Chapter 5: Efficient portfolio and diversification
    • What is efficient portfolio
    • Efficient portfolio of two assets
    • Efficient portfolio of many assets

[August 19] Class 12

  • Chapter 7: Behavioral Finance
    • What is behavioral finance
    • Why do people take irrational decisions while investing in the stock market
  • Class test
    • Fullmark: 10.00
    • Time: 30 minutes
    • Syllabus: Chapter 4 (The market)
    • Click here to view the announcement
    • Click here to view the result.

[August 27] Class 13 (Extra)

Time: 6:00 - 8:15, Room - 1003
  • Solution to the class test held on August 19th.
  • Click here to view the announcement

[September 2] Final Exam

  • Time: 3:00 - 5:00
  • Room: 1003
  • Click here to view the result.