FNCE 3151: Portfolio and Equity Analysis

Students examine the different types of financial assets, the markets in which they trade, and how investors stucture these assets into diversified portfolios to meet their financial objectives. Emphasis is placed on the valuation of equity securities. Topics include an introduction to risk and return; types of securities and the investment process; mutual funds; stock market and common stock valuation; stock price behaviour, market efficiency, and behavioral finance; technical analysis; fundamental analysis; return, risk and security market line; and portfolio management and performance evaluation.

Objectives

Upon successful completion of the course, students will be able to:

  • Evaluate the effect of risk and diversification on investment decisions.
  • Discuss the characteristics of the various types of investments and the ways in which they are sold.
  • Defend the use of mutual funds versus investing in individual assets.
  • Explain the functioning of financial markets and their role in pricing investments.
  • Compare the efficient market hypothesis with behavioral finance.
  • Value equities using fundamental analysis and technical analysis.
  • Analyze a company’s prospects in relation to its industry and peers.
  • Use the Capital Asset Pricing Model and Asset Pricing Theory to estimate investment returns.
  • Develop a portfolio management plan reflecting the goals, risk tolerance, and circumstances of individual and institutional investors.

Course outline

  • Unit 1: Risk, Return, Diversification, and Asset Allocation
  • Unit 2: The Stock Market
  • Unit 3: Risk and Return
  • Unit 4: Risk, Return, and the Security Market Line
  • Unit 5: Common Stocks
  • Unit 6: Analyzing Common Stocks
  • Unit 7: Stock Valuation
  • Unit 8: Market Efficiency and Behavioural Finance
  • Unit 9: Mutual Funds and Exchange-Traded Funds
  • Unit 10: Portfolio Management and Performance Evaluation

Required text and materials

Students will receive the following:

  1. Zutter, C. J. (2019). Fundamentals of investing (14th ed.) Pearson.
    Type: eText with Access Card. ISBN: 9780135179307

Note: The above textbook contains these extra study resources: MyLab Finance with Pearson eText and Access Card. It is not required or needed to complete this course, but might provide extra study resources if you are interested.

Assessments

Please be aware that due to COVID-19 safety guidelines all in-person exams have been suspended. As such, all final exams are currently being delivered through ProctorU, which has an approximate fee of $35 involved. There will be more information in your course shell, on how to apply, if your course has a final exam.

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the mandatory final exam.

Quiz x3 (6%, 6%, and 8%) 20%
Assignment 1: Risk Analysis 10%
Assignment 2: Project Proposal 10%
Assignment 3: Portfolio Project 20%
Final Exam (mandatory) 40%
Total 100%

Open Learning Faculty Member

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment’s “Mail” tool or by phone. Students will receive the necessary contact information when starting the course.

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