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Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan, Rizal

COURSE SYLLABUS
COLLEGE: Business
COURSE CODE/Course Title: Finance 5/ Investment and Portfolio Management
Credit Unit/No. of Contact Hours/week: 3 units
Total no. of hours in a semester: 54 hours
Prerequisite:

BA4 and all other Finance subjects prior to this subject

Type of Course: Business Financial Management

Term/School Year:

First Semester, SY 2014 to 2015

Course Description: This course deals with fundamental theories of optimal portfolio selection, investment evaluation, securities valuation, industry and
company analysis in relation to stock market operations, management of fixed income investments, international portfolio diversification.
Course Objectives:
1. To help students how to manage money to derive maximum benefit from what they earn by leaning the different investment alternatives
that are available today.
2. To evaluate and analyze investment and future opportunities to develop a portfolio of investments that will satisfy ones risk-return
objectives.
3. To discuss the modern developments in investment and portfolio by introducing to the students alternative investments, compare them with
traditional investment portfolios and determine which among them would suit their needs.
4. To learn the idea and importance and good investment and portfolio management.
Other Objectives:
A.

National/Regional
To train the nations manpower in the development of skills, attitudes and values required for

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B. College of Business Goals
1. To be a leading center of affordable quality education in business management and accounting
2. To produce competent and socially responsive graduates of business administration and accountancy through quality instruction,
research, extension and production.
3. To constantly develop industry-driven curricula in business and accounting education
4. To pursue a socially relevant research program attuned to the needs of local businesses and organizations.
5. To establish meaningful linkages with private businesses, government agencies and non government organizations.
6. To initiate vigorously income generating activities by developing products and engaging in other business ventures.
C. BSBA Objectives
1. To prepare students with knowledge, technical skills and work habits required for entry level positions in various industries and to give
them opportunities for career advancement.
2. To produce competent graduates employable in the areas of human resource development management, marketing management and
financial management.
3. To prepare students to become future managers and entrepreneurs who are fully knowledgeable of the process of managing a business
Course Outline:
Chapter/Unit Objectives

Topics

To organize the class and set order and

structure

Get class cards, alphabetical seating arrangement, election of

officers

To familiarize students with class room

rules and regulations for strict
compliance

Orientation on Classroom rules and regulations, Class setup/style

To determine and understand the new

University VMGO by religiously doing
their roles as students
To understand several topics basic in
investment

Orientation of URS Vision, Mission, College Goals and

Objectives
Investment defined
Measures of Return and Risk
Historical Rates of Return
Mean/Average Historical Returns
Expected Rate of Return
Risk of Expected Rates of Return
Risk Measures for Historical Returns
Determinants of Required Rates of Return
The Real Risk-Free Rate (RRFR)

No. of
Hours
1.50

References
NA

1.50

NA

URS Student Handbook

4.5

Pages 1 41 Understanding
Investment Analysis and Portfolio
Management by Keith brown and
Frank K. Reilly

To understand risk management in the

context of asset allocation decisions

To measure the level of students

learning based on the topics discussed
and review them for the prelim exam
To check previous quiz and determine
the students strengths and weaknesses
To check students learning through a
periodic exam
To check the periodic exam and discuss
key areas of concern
To determine the available alternative
investments and to be able to choose
which will suit the preferences of
different investors

Nominal Risk-Free Rate (NRFR)- factors that influence

it
Measures and Sources of Risk
Relationship of Risk and Return
Read SUMMARY to get important points of the chapter
Asset Allocation
Individual Investor Lifecycle
The Preliminaries
Investment Strategies Over an Investors Lifetime
Life Cycle Investment Goals
The Portfolio Management Process
The Need for a Policy Statement
Understand and Articulate Realistic Investor Goals
Standards for Evaluating Portfolio Performance
Other Benefits
Input to the policy statement
Investment objectives
Investment Constraints
Importance of Asset Allocation
Read SUMMARY and APPENDIX to get important points of
the chapter
PL LONG QUIZ - Coverage: Investment to Asset Allocation

4.5

1.5

Checking of PL LONG QUIZ

1.5

PRELIM EXAM

1.5

Checking of PRELIM EXAM

1.5

Global Investment Choices

Fixed Income Investments
International Bond Investing
Equity Instruments
Special Equity Instruments Options
Future Contracts

Pages 48 75 Understanding
Investment Analysis and Portfolio
Management by Keith brown and
Frank K. Reilly

3.0

Pages 86 104 Understanding

Investment Analysis and Portfolio
Management by Keith brown and
Frank K. Reilly

To understand the importance of

investment diversification by knowing
the step by step process of portfolio
theory including the basic portfolio risk
formulas

To get an overview of the valuation

process and some basic valuation
concepts
of
different
investment
instruments

To be able to measure the intrinsic

value of a firms common stock through
various methods

Investment Companies
Real Estate
Low Liquidity Investments
Read SUMMARY to get important points of the chapter
An Introduction to Portfolio Management
Risk and Risk Aversion
Markowitz Portfolio Theory
Alternative Measure of Risk
Expected Rate of Return
Variance (SD) of Returns for an Individual Investment
Variance (SD) of Returns for a Portfolio
Read SUMMARY to get important points of the chapter
An Introduction to Security Valuation
Overview of the Investment Process
The Three (3) Step Valuation Process
Theory of Valuation
Valuation of Alternative Investments
- Valuation of bonds
- Valuation of Preferred stock
- Valuation of Common Stock
- Discounted Cash Flow Valuation Technique why and
when to use it
- Relative Valuation Technique why and when to use it
Earnings Multiplier Model
Price/Cash Flow Ratio
Price/Book Value Ratio
Price/Sales Ratio
Read SUMMARY to get important points of the chapter
Analysis and Management of Common Stock
Estimating Intrinsic Value of a Firms Common Stock
1. Present Value of Cash Flows (PVFC)
A. Present Value of Dividends (DDM)
B. Present Value of free cash flow to equity (FCFE)
C. Present value of free operating cash flow in the
firm (FCFF)
2. Relative Valuation Techniques
A. Price/Earnings Ratio

3.0

Pages
198

206,
217-218
Understanding Investment Analysis
and Portfolio Management by Keith
brown and Frank K. Reilly

4.5

Pages 338 361, 370 Understanding

Investment Analysis and Portfolio
Management by Keith brown and
Frank K. Reilly

4.5

Pages 481 499, 528 - 529

Understanding Investment Analysis
and Portfolio Management by Keith
brown and Frank K. Reilly

To understand problem solving related

to the topics
To check students learning through a
periodic exam
To check the periodic exam and discuss
key areas of concern
To study the different concepts of bonds
and its valuation

To understand the different derivative

instruments

To measure the level of students

learning based on the topics discussed
and review them for the Final exam
To check previous quiz and determine
the students strengths and weaknesses
To check students learning through a

B. Price/Cash Flow Ratio

C. Price/Book Value Ratio
D. Price/Sales Ratio
Read SUMMARY to get important points of the chapter
NOTE: There will be no midterm long quiz. Only Seatworks
and Activities will be facilitated all throughout the period to
understand problem solving thoroughly
MT EXAM Coverage: Global Investment Choices to Analysis
and Management of Common Stock
Checking of MT EXAM
Analysis and Management of Bonds
Basic Features of Bonds
Rates of Returns on Bonds
Participating Issuers and Investors of Bonds
Bond Ratings
Fundamentals of Bond Valuation
Present Value Model
The Yield Model
Computing bond yield
Calculating Future Bond Prices
Bond Valuation using spot rates
What determine interest rates
Bond Portfolio Investment Strategies
Read SUMMARY to get important points of the chapter
An Introduction to Derivative markets and Securities
Forward and Spot Markets
Forward and futures market 789 799, 821
Option Contracts 729 839, 869
SWAP Contracts 875-883
Read SUMMARY to get important points of the chapter
Final LONG QUIZ - Coverage: Analysis and Management of
Bonds to Derivatives

1.5
1.5
6.0

Pages 631 647 , 690, 703 and 709

Understanding Investment Analysis
and Portfolio Management by Keith
brown and Frank K. Reilly

6.0

Pages 753 763, Understanding

Investment Analysis and Portfolio
Management by Keith brown and
Frank K. Reilly

1.5

Checking of Final LONG QUIZ

1.5

Final EXAM

1.5

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periodic exam
To check the periodic exam and discuss
key areas of concern

Checking of Final EXAM

1.5

TOTAL

54
Hours

Teaching Methods/Strategies: Lecture/Discussion, Oral Report, Seatwork, Activity, Quiz, Major Exams and Project
Requirements: The following are compelled from every student
A. Take the Quizzes, Seatworks and Major Exams (Prelim, Midterm, and Final Exams)
B. Participate in the class discussion/interaction and class activities
C. To attend the class regularly and on time; to observe class rules and regulations
D. To develop good moral and right conduct
E. Deliver oral report and submit class project
Assessment/Evaluation: Students performance will be measured using the following ratings
Attendance 10%
Character
15%
Seatworks/Activities/Quizzes/Others
35%
Major Exam
40%
_______________
100%
Laboratory/Equipment:
Textbook:

Not applicable

Understanding Investment Analysis and Portfolio Management, Keith C. Brown and Frank K. Reilly

References: John Downes, Jordan Elliot Goodman Dictionary of Finance and Investment Terms, Steven Bragg Treasury Management, Capital Markets,
Institutions & Instruments, 4th Edition by Fabozzi & Modiglianni, Internet
Prepared by:
__________________________
EMILY J. YUNZAL Instructor 1

Endorsed:
______________________
Mrs. Nery T. Vivas DBA (CAR)
Dean of COB
Approved:
_____________________
Mr. Medardo Bombita, DPA
Director of Binangonan Campus