Programme Code: FN5623
Medium of instructions:
Prof. Dr. Shamsher Mohamad Ramadilli Mohd
The course Portfolio Management introduces students to the fundamental principles of Investment Analysis and Portfolio Management both within the conventional and Islamic context. Specifically, the course focuses on the elements of investment portfolio theory, equilibrium in capital markets, risk/return tradeoffs and optimal portfolios, security portfolio analysis, derivative markets and issues related to Shariah compliant investments.
At the end of the course, students are expected to understand the structure and function of equity, bond and derivative markets both Islamic and conventional, the processes of halal designation of stocks, construction of Islamic stock indices and Shariah issues related to investment management. Moreover, students will be able to perform analysis and valuation of equity securities, appreciate the limitations of stock selection, asset allocation and market timing decisions. Additionally, students will develop investment strategies built on fundamentals of risk and return by incorporating advanced quantitative strategies, understand the efficacy and limitations of pricing techniques such as, the CPAM, Multi-factor models, the APT and Behavioral Finance.
By the end of this course students should be able to :
Perform analysis and valuation of equity securities.
Understand the structure and function of equity, bond and derivative markets.
Appreciate the limitations of stock selection, asset allocation and market timing decisions.
Develop investment strategies built on fundamentals of risk and return and incorporating advanced quantitative strategies
Understand the efficacy and limitations of pricing techniques such as, the Capital Asset Pricing Model, Multi Factor models and the Arbitrage Pricing Theory
Appreciate the Shariah requirements for financial instruments.